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Rising Home Values and Shifting Ownership in Edwardsville, Illinois: A Decade of Housing Market Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Edwardsville, Illinois, is a vibrant city located in Madison County. Known for its rich history and as the home of Southern Illinois University Edwardsville, the city has experienced notable changes in its housing market over the past decade. The ownership percentage has shown a slight decline, while average home prices have steadily increased. Average rent prices have also risen, reflecting the city's growing appeal and economic development.
The homeownership rate in Edwardsville has experienced a modest decline from 73% in 2013 to 71% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $187,226, which increased to $285,700 by 2022, representing a significant 52.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Edwardsville. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained stable at 73%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate dipped to 70% in 2017 and fluctuated between 69% and 71% in the following years. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially deterring some potential buyers.
The renter population in Edwardsville has seen a slight increase, from 27% in 2013 to 29% in 2022. Correspondingly, average rent prices have risen from $994 in 2013 to $1,041 in 2022, an increase of 4.7%. The city's population growth, from 27,663 in 2013 to 29,879 in 2022, may have contributed to the increased demand for rental properties, supporting the rise in both renter percentage and average rent prices.
Looking at the most recent data, the average home price in Edwardsville reached $293,750 in 2023 and further increased to $303,589 in 2024. This represents a continued upward trajectory in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership trends in the city.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Edwardsville will continue to rise, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,200 per month within the same timeframe. These projections are based on the consistent upward trends observed in both home prices and rent over the past decade.
In summary, Edwardsville has experienced a gradual shift in its housing market dynamics. The slight decrease in homeownership rates, coupled with significant increases in average home prices, suggests a changing landscape for potential buyers. The rise in the renter population and average rent prices indicates growing demand for rental properties. With continuing population growth and rising property values, Edwardsville's housing market is likely to remain dynamic in the coming years, presenting both opportunities and challenges for residents and investors alike.
