Illinois home price growth lagged rest of nation
Illinois declining population was partly responsible for lower growth housing values and Illinois slower recovery.
Illinois’ housing prices surged 11.4% in 2021, much lower than the 18.4% average growth other states saw.
Ultra-low interest rates boosted housing demand, along with government checks that stimulated household incomes. The rise in work-from-home situations, and accompanying freedom to work from anywhere, led many to put their home on the market.
States experiencing population growth benefited even more from housing demand and job creation.
Real estate is often the largest asset of a family’s wealth, so even small appreciations can have huge impacts on consumer spending. Spending subsequently impacts the whole economy.
Relatively sluggish housing appreciation in Illinois means lower increases in consumer spending, less new construction, less job creation and lower wage growth. As a result, residents move to a new state with more economic opportunities. and lower wage growth. As a result, residents find a new state with more economic opportunities.
Population loss is the main reason Illinois homes prices grew at lower rates compared to the rest of the country. 2021 was a record year for residents leaving Illinois.
Sustainable growth in Illinois’ housing market must start with lawmakers making the state a more attractive option for people searching for a new home.