Loading Content...
Waterloo, Illinois: Rising Home Values and Stable Ownership in a Growing City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Waterloo, Illinois, a city in Monroe County, has experienced significant growth and economic changes over the past decade. With a population of 16,453 as of 2022, this small but vibrant community has shown interesting trends in homeownership, average home prices, and average rent prices.
Homeownership in Waterloo has remained consistently high, with a slight increase from 81% in 2013 to 83% in 2022. This trend correlates with the steady rise in average home prices, which grew from $176,953 in 2013 to $269,326 in 2022, representing a 52% increase over nine years. The city's strong homeownership rate suggests a stable and desirable housing market, with residents showing a preference for owning rather than renting.
The relationship between federal interest rates and homeownership rates in Waterloo appears to be somewhat inverse. As interest rates remained low between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates stayed relatively stable around 81-82%. However, when interest rates rose sharply to 1.68% in 2022, homeownership actually increased to 83%, possibly indicating other local factors influencing buying decisions.
Renter percentages in Waterloo have fluctuated slightly, decreasing from 19% in 2013 to 17% in 2022. Interestingly, average rent prices have shown volatility during this period. Starting at $1,043 in 2013, rent prices peaked at $1,159 in 2016 before declining to $992 in 2022. This 14.4% decrease in average rent prices from 2016 to 2022 occurred while the population grew by about 5.8%, suggesting that other factors, such as increased housing supply or local economic conditions, may have influenced rental markets more than population growth.
In 2023 and 2024, Waterloo's housing market continued to show strength. Average home prices reached $276,945 in 2023 and further increased to $290,818 in 2024, representing a 5% year-over-year growth. This occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, indicating robust local demand for homeownership even in a higher interest rate environment.
Looking ahead, predictive models suggest that average home prices in Waterloo may continue to rise over the next five years, potentially reaching around $330,000 by 2029 if current trends persist. Average rent prices, which have been more volatile, could stabilize and potentially increase moderately to about $1,100 per month by 2029, assuming economic conditions remain favorable and housing supply keeps pace with population growth.
In summary, Waterloo, Illinois has maintained a strong homeownership market with steadily increasing average home prices, even in the face of rising interest rates. The rental market has shown more variability, with recent trends favoring renters through lower average rents. As the city continues to grow, balancing housing affordability with homeownership opportunities will be crucial for maintaining its attractive residential profile.
