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Rising Home Values and Shifting Ownership in DeKalb: A University Town's Housing Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
DeKalb, Illinois, home to Northern Illinois University, is a vibrant city with a rich educational heritage. Over the past decade, the city has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in DeKalb has fluctuated from 2013 to 2022. In 2013, 42% of housing units were owner-occupied, dropping to 38% by 2017, and then recovering to 42% by 2022. Concurrently, average home prices have steadily increased. In 2013, the average home price was $128,555, rising to $197,900 by 2022, representing a substantial 54% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in DeKalb. From 2013 to 2016, historically low interest rates ranging from 0.09% to 0.4% coincided with relatively stable homeownership rates around 42-43%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, homeownership rates initially dipped to 38% in 2017 but then stabilized at 40% from 2018 to 2021. This suggests that while rising interest rates may have initially deterred some potential buyers, other factors such as local economic conditions and housing affordability also influenced homeownership rates.
Renter occupancy in DeKalb has generally increased over the past decade, mirroring the decline in homeownership. The percentage of renter-occupied units rose from 58% in 2013 to a peak of 62% in 2017, before settling at 58% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $1,021, increasing to $1,038 by 2017. However, there was a slight decrease to $1,009 by 2022, possibly reflecting changes in local demand or economic conditions.
In 2023 and 2024, DeKalb's housing market continued to evolve. The average home price in 2023 reached $210,243, further climbing to $225,784 in 2024. This represents a significant 14% increase from 2022 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in DeKalb are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average home prices could reach around $250,000 to $270,000 by 2029. Average rent prices are expected to show moderate growth, potentially reaching $1,100 to $1,200 per month in the same timeframe, reflecting ongoing demand for rental properties in this university city.
In summary, DeKalb has experienced a gradual shift towards a renter-majority market over the past decade, with homeownership rates fluctuating but showing recent signs of stabilization. Average home prices have consistently increased, outpacing changes in rent prices. The interplay between federal interest rates, local economic factors, and the city's unique character as a university town will continue to shape DeKalb's housing market in the coming years.
