Illinois Housing Market Vitality

Market Rank

forty seven

Illinois metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, Illinois’ housing market has strengthened. Current local economic conditions support an estimated 1.9% increase in house prices over the next twelve months. Based on the housing market vitality of the fifteen metro housing markets which comprise it, Illinois’ housing market ranks forty seventh amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Illinois Metro Housing Markets

Illinois is comprised of fifteen metro housing markets that account for nearly 88% of the state’s population. The Prairie State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREA SITUATION OUTLOOK US METRO RANK (/402)
Bloomington, IL Underperforming Negative 346
Cape Girardeau, MO-IL Underperforming Positive 214
Carbondale-Marion, IL Underperforming Negative 377
Champaign-Urbana, IL Underperforming Negative 378
Chicago-Naperville-Arlington Heights, IL Underperforming Negative 363
Danville, IL Outperforming Negative 248
Davenport-Moline-Rock Island, IA-IL Underperforming Negative 364
Decatur, IL Underperforming Negative 329
Elgin, IL Underperforming Positive 250
Kankakee, IL Underperforming Negative 359
Lake County-Kenosha County, IL-WI Underperforming Negative 380
Peoria, IL Underperforming Neutral 296
Rockford, IL Underperforming Negative 333
Springfield, IL Underperforming Negative 374
St. Louis, MO-IL Underperforming Positive 217

Industry Specialization

Illinois’ state economy is specialized in Manufacturing, Fncl activities, and Pro Bus svcs. Mining, Construction, and Leisure Hosp industry sectors are less important to the state economy compared to the national 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 state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a lower incidence of poverty amongst Illinois residents and they have greater purchasing power. There are more high school graduates and a larger proportion of the population is college educated. Illinois’ population is comparatively more diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Data through December 2020