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Rockford's Rising Home Values: The Forest City's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rockford, Illinois, known as the "Forest City" due to its abundance of parks and green spaces, has experienced notable shifts in its housing market over the past decade. Located about 90 miles northwest of Chicago, this city of 145,835 residents (as of 2022) has seen fluctuations in homeownership rates, average home prices, and average rent prices. The overall trend shows a slight decrease in homeownership, while both average home prices and average rent prices have generally increased.
The relationship between homeownership rates and average home prices in Rockford has been complex. In 2013, the homeownership rate was 56%, with an average home price of $68,392. By 2016, homeownership dropped to 50% as average home prices rose to $75,221. However, by 2022, homeownership rebounded to 58% despite a significant increase in average home prices to $130,718. This suggests that other factors, such as local economic conditions or housing policies, may have influenced homeownership rates beyond just price considerations.
Federal interest rates have played a role in homeownership trends in Rockford. From 2013 to 2016, when interest rates were near historic lows (0.11% to 0.40%), homeownership actually decreased. However, as rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized around 55-56%. This somewhat counterintuitive trend might be explained by improved local economic conditions or changes in housing supply during this period.
Renter percentages and average rent prices have shown a generally positive correlation. In 2013, 44% of Rockford residents were renters, with an average rent of $701. By 2019, the renter percentage increased to 48%, coinciding with a rise in average rent to $824. The peak in renter percentage occurred in 2016 at 50%, when average rent was $712. The population decline from 152,618 in 2013 to 143,707 in 2019 may have contributed to increased rental demand and higher average rents.
In 2023, average home prices in Rockford reached $140,171, continuing the upward trend seen in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. As of 2024, average home prices have further climbed to $153,659, with interest rates at 5.33%. These figures indicate a robust housing market in Rockford, seemingly resilient to higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Rockford may continue to rise over the next five years, potentially reaching around $180,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Rockford's housing market has demonstrated resilience and growth despite population fluctuations and changing economic conditions. The city has maintained a relatively balanced mix of homeowners and renters, with recent trends favoring homeownership. The consistent increase in both average home prices and average rent prices suggests a strengthening local economy and growing demand for housing in the area. As Rockford continues to evolve, its housing market is likely to remain dynamic, influenced by both local factors and broader economic trends.
