The state’s housing prices soar as its supply of homes for sale remains far behind the nation’s.
The average Illinois home price has skyrocketed nearly $100,000 since 2019 as the state’s housing inventory recovery lags far behind the nation’s.
The typical home in the state costs just over $294,000, up from about $198,500 seven years before, according to Zillow’s Home Value Index, which compares prices of similar homes over time
That’s an increase of nearly $96,000, or 48%, and highlights the need for more housing supply.
The price surge hasn’t hit all Illinois communities equally. Some have seen even steeper increases far exceeding the statewide trend, with home prices more than doubling.
The sharpest rise is in Ford Heights, a south suburb of Chicago Home values there have jumped 136.8% since 2019. De Soto, in Southern Illinois, isn’t far behind at 132.0%, followed by Sauk Village, which neighbors Ford Heights, at 130.8%.
The dramatic price increase in the Illinois housing market stems largely from its failure to recover from its severe shortage of homes for sale.
Illinois has just 33% of the active listings it did before the pandemic, according to Realtor.com.
That places the state’s recovery well behind the nation’s, where listings have climbed back to 87% of pre-pandemic levels.
All 26 Illinois metro areas that Zillow tracks have seen their listings shrink since May 2019. The Chicago area’s available housing has fallen more than 50%, dropping from 48,113 homes on the market in 2019 to just 21,664 this year.
Ten Illinois metro areas have experienced even steeper listing drops.
Fewer homes for sale drives up prices. Illinois won’t close the gap with the rest of the country unless it builds substantially more housing.
Allowing higher-density housing near transit, encouraging homes on smaller lots and legalizing accessory dwelling units would help remove barriers to construction.
Even with more homes on the market, Illinois families will continue to face affordability challenges if the state fails to address its nation-leading property tax burden.
Expanding housing supply while reducing the cost of homeownership would make it easier for more Illinoisans to buy — and keep — a home.
