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Rising Home Values and Stable Ownership in Lebanon, Illinois: A Historic University Town's Housing 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
Lebanon, Illinois, a charming city located in St. Clair County, is home to McKendree University, the oldest college in the state. With a population of 4,924 in 2022, Lebanon has experienced significant growth and changes in its housing market over the past decade. The city has maintained a high rate of homeownership, while average home prices and rent have shown notable fluctuations.
Homeownership in Lebanon has remained relatively stable, with a slight decrease from 73% in 2013 to 72% in 2022. During this period, average home prices experienced moderate growth. In 2013, the average home price was $109,885, which increased to $147,588 by 2022, representing a 34.3% increase over nine years. This upward trend in home prices, despite a small decline in homeownership, suggests a resilient housing market in Lebanon.
The relationship between federal interest rates and homeownership rates in Lebanon shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates stayed relatively high at 70-73%. However, as interest rates began to rise from 2017 to 2019 (1% to 2.16%), there was a slight dip in homeownership to 66% in 2018, before recovering to 71% in 2019 and maintaining that level through 2022.
Renter percentages in Lebanon have fluctuated between 27% and 34% from 2013 to 2022. Interestingly, average rent prices have shown significant volatility during this period. In 2013, the average rent was $731, which dropped to $512 in 2014, then rose sharply to $824 in 2015. By 2022, the average rent had increased to $953, representing a 30.4% increase from 2013. This upward trend in rent prices, coupled with the city's population growth from 3,697 in 2013 to 4,924 in 2022, suggests increasing demand for rental properties in Lebanon.
In 2023, the average home price in Lebanon reached $158,469, showing continued growth in the housing market. This trend persisted into 2024, with average home prices further increasing to $161,190. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability.
Looking ahead, predictive models suggest that average home prices in Lebanon 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 population growth and demand for housing. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, Lebanon's housing market has demonstrated resilience and growth over the past decade. The city has maintained a high rate of homeownership despite rising home prices and fluctuating interest rates. The rental market has seen significant price increases, reflecting growing demand. As Lebanon continues to evolve, these housing trends will play a crucial role in shaping the city's future development and community dynamics.
