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Washington, Illinois: Home Values and Ownership Trends in a Growing Prairie State Community
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
Washington, Illinois, a city in Tazewell County with a population of 18,957 in 2022, is characterized by its strong sense of community and resilience. The city has experienced steady growth over the past decade, maintaining a high rate of homeownership averaging around 80% throughout the 2010s and early 2020s. Average home prices and rent have shown notable increases in recent years.
The homeownership rate in Washington has remained relatively stable, with a slight increase from 80% in 2013 to 82% in 2022. During this period, average home prices experienced fluctuations but ultimately showed an upward trend. In 2013, the average home price was $153,005, which increased to $193,200 by 2022, representing a 26.3% rise over nine years. This trend suggests that despite rising home prices, Washington residents have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), the homeownership rate in Washington remained steady at 80-81%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate saw a slight dip to 80% in 2018 and 2019. Interestingly, when interest rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rebounded to 82% by 2022, despite rising home prices.
Renter percentages in Washington have remained relatively low, fluctuating between 18% and 20% from 2013 to 2022. Average rent prices, however, have shown a consistent upward trend. In 2013, the average rent was $942, which increased to $1,216 by 2022, representing a 29% increase over nine years. This rise in rent prices outpaced the growth in home prices during the same period, potentially making homeownership a more attractive option for residents.
In 2023 and 2024, Washington's housing market continued to evolve. The average home price in 2023 was $194,004, showing a slight increase from 2022. In 2024, the average home price rose further to $201,747, indicating continued growth in the real estate market. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions in the coming years.
Looking ahead, predictive models suggest that average home prices in Washington are likely to continue their upward trajectory over the next five years. Based on historical trends and current market conditions, we can expect average home prices to potentially reach around $220,000 to $230,000 by 2029. Similarly, average rent prices are projected to increase, potentially reaching $1,400 to $1,500 per month in the same timeframe.
In summary, Washington, Illinois has demonstrated a strong and stable housing market characterized by high homeownership rates and steadily increasing property values. The city has maintained its appeal to homeowners despite rising prices and fluctuating interest rates. The consistent growth in both home prices and rent suggests a robust demand for housing in the area, likely driven by the city's desirable community attributes and economic stability.
