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Rising Home Values and Shifting Ownership in Swansea, Illinois: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Swansea, Illinois, a small suburban community in St. Clair County, has experienced significant changes in its housing market over the past decade. With a population of 14,431 in 2022 and an area of 6.62 square miles, this village combines small-town charm with proximity to urban amenities. The housing market in Swansea has seen fluctuations in homeownership rates, average home prices, and rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Swansea showed a slight decline from 76% in 2013 to 74% in 2022. During this same period, average home prices demonstrated a significant upward trend, increasing from $147,026 in 2013 to $220,343 in 2022, representing a substantial 49.9% increase. This rise in home prices occurred despite the slight decrease in homeownership rates.
Federal interest rates have played a role in shaping homeownership trends in Swansea. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 73-74%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight decrease in homeownership, dropping to 72% in 2019. However, the subsequent drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) coincided with a small rebound in homeownership to 73-74%.
The renter population in Swansea has seen a modest increase over the years, from 24% in 2013 to 26% in 2022. Average rent prices have shown some volatility. In 2013, the average rent was $1,161, which remained relatively stable until 2018 when it dropped to $1,051. The average rent continued to decrease, reaching a low of $975 in 2019, before beginning to rise again. By 2022, the average rent had increased to $1,050, still below the 2013 levels but showing signs of recovery.
In 2023 and 2024, Swansea experienced continued growth in average home prices. The average home price reached $231,586 in 2023 and further increased to $241,169 in 2024, representing a 9.2% increase over two years. This growth occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that average home prices in Swansea are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by a combination of housing demand and inflationary pressures. However, the rate of increase may be moderated by the village's stable population and the potential for new housing developments.
In summary, Swansea has demonstrated resilience in its housing market over the past decade. Despite a slight decrease in homeownership rates, average home prices have shown robust growth. The rental market has experienced some fluctuations but appears to be on a recovery path. The interplay between federal interest rates, local economic conditions, and housing supply will continue to shape Swansea's real estate landscape in the coming years.
