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Rising Home Values and Shifting Ownership in Galesburg, Illinois: A Decade of Housing Market Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Galesburg, a city in Illinois, has witnessed notable shifts in its housing landscape over the past decade. Located in Knox County, this historic city is known for its rich railroad heritage and as the birthplace of Carl Sandburg, a renowned American poet. The trends in homeownership rates, average home prices, and average rent prices in Galesburg reveal an intriguing story of urban development and economic changes.
The homeownership rate in Galesburg has experienced fluctuations, with a general downward trend from 2013 to 2022. In 2013, the city boasted a 62% homeownership rate, which gradually declined to 58% by 2018. However, there was a slight recovery in recent years, with the rate stabilizing at 61% in 2022. This trend coincides with changes in average home prices, which have shown a steady increase over the same period. The average home price in Galesburg rose from $66,222 in 2013 to $79,255 in 2022, representing a significant 19.7% increase over nine years.
Federal interest rates have played a crucial role in shaping homeownership trends in Galesburg. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging between 58% and 62%. As interest rates began to rise in 2017, reaching 1.83% by 2018, there was a slight dip in homeownership to 58%. However, the subsequent drop in interest rates in 2020 and 2021 to near-zero levels coincided with a rebound in homeownership rates to 61% by 2022.
The rental market in Galesburg has shown interesting trends as well. The percentage of renters increased from 38% in 2013 to a peak of 42% in 2016 and 2018, before settling back to 39% in 2022. Average rent prices have fluctuated during this period, starting at $692 in 2013, reaching a high of $700 in 2016, and then decreasing to $654 by 2022. This trend suggests that while the rental market expanded, it may have reached a saturation point, leading to a slight decrease in both the percentage of renters and average rent prices in recent years.
In 2023 and 2024, Galesburg's housing market has continued to evolve. The average home price in 2023 was $78,589, showing a slight decrease from 2022. However, 2024 has seen a significant jump to $85,875, marking a 9.3% increase from the previous year. This surge coincides with a rise in federal interest rates, which stood at 5.02% in 2023 and increased further to 5.33% in 2024. These higher interest rates may impact future homeownership trends in the city.
Looking ahead, predictive models suggest that Galesburg's housing market will continue to experience growth, albeit at a more moderate pace. Average home prices are projected to increase by approximately 2-3% annually over the next five years, potentially reaching around $96,000 by 2029. The rental market is expected to stabilize, with average rent prices likely to see modest increases of 1-2% per year, potentially reaching about $690 by 2029.
In summary, Galesburg's housing market has demonstrated resilience and growth over the past decade. The city has maintained a relatively stable homeownership rate despite fluctuations in interest rates and rising home prices. The rental market has shown signs of maturation, with recent trends suggesting a balancing of supply and demand. As Galesburg moves forward, its housing market appears poised for continued, steady growth, reflecting the city's enduring appeal and economic stability.
