Market Report

Elgin, IL

Short-term forecast

Underperform

House price changes in the Elgin, IL metro market are forecasted to underperform the national market in the short term. Based on the housing market vitality metric, the market ranks 292 among 402 US metro housing markets. Currently, the metro market is outperforming the national market and performance is forecasted to deteriorate significantly.

MARKET RANK
Feb 2020 Feb 2019
292 / 402 380 / 402
SITUATION
Feb 2020 Feb 2019
Outperforming Underperforming
OUTLOOK
Feb 2020 Feb 2019
Negative Positive

Forecasted Performance

The local housing market vitality is forecasted to deteriorate significantly and performance will be in the bottom decile of all metro markets. Improvements in local economy and national economy conditions lift the forecasted performance and changes in job market conditions drag down the forecast.

Trailing 12-month Performance

Over the last twelve months, local housing market vitality improved significantly and performance is currently in the middle fifty of all metro markets. Improvements in job market conditions boosted trailing 12-month performance and changes in new construction and local economy conditions moderated performance.

Industry Specialization

The local economy is specialized in: Manufacturing. Mining, Edu Health svcs, and Information industry sectors are less important to the local economy. Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the local economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Industry Composition

Accounting for 63% of the local business economy, the top three industry sectors are: Trade Trans Util, Manufacturing, and Pro Bus svcs. These industry sectors create the bulk of the jobs and earnings that power the local economy. Longer-term trends that impact these sectors will have an enduring effect on the local economy.

Market Demographics

Compared to the US, Elgin, IL metro market has a lower incidence of poverty and the local population has less purchasing power. There are fewer high school graduates and a larger proportion of the population is college educated. Lastly, the local population is less diverse than the overall US population. A Demographics Index value greater than 100 corresponds to the factor being more intense in the local market versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.