Illinois Housing Market 2023 Report

Hannah Griffith
13 min read
January 9, 2023
illinois housing market

What’s the Illinois Housing Market Like?

The state of Illinois’s housing market has been at a steady pace of growth over the last 3 years. The median sales price as of Sept 2022 was $261,200. If we look back at Sept 2019’s median price of $215,700, we can see the increase in the median price has only been up 21%, which is slightly above a 6% yearly rate. This is a much more modest increase in the average home price than many of the other states in the nation.

Much like the rest of the nation, Illinois's real estate market numbers reflect the impact of the pandemic and recent mortgage rate hikes. Sales volume has dropped a bit year over year. In Sept 2022, 13,680 homes and condos changed hands in the state of Illinois, a 19.1% decrease from Sept 2021, when there were 16,800 homes and condos sold.  

The number of sales over the last three years peaked at 21,041 in June 2021; compared to Sept 2022’s numbers, we are down 34.9% in the number of sales from the peak of the last three years. Relatively speaking, this is a significant drop in sales which is a reflection of the impact of the pandemic and rising interest rates.

Looking back at the median home price over the last three years, prices peaked in June 2022 at $261,200. It is clear that the recent steep rise in mortgage rates has curved sales activity and shrunk affordability, and the result has been a drop in home prices and sales.

How Does The Illinois Housing Market Compare to the National Housing Market?

The Illinois housing market is more favorable than the national market as a whole. First, the median price of homes in Illinois is $142,356 lower than the national average, which is a 35% difference in the median price. 

Because of the moderate and affordable cost of buying a home, Illinois’s real estate appreciation has been a moderate rate of appreciation compared to the rest of the nation. Illinois’s home prices were up just 2.2% vs. the US national average, up 7.5% from last year.

Illinois Areas With the Hottest Housing Markets 

The state of Illinois has a very attractive location in the Southeast part of the US. The state has a very mild climate, modestly priced homes, and reasonable tax rates. These characteristics have attracted many fortune 500 companies as well as institutional real estate investors to the state. These favorable factors have caused some areas of Illinois to appreciate at a fast rate; here are the top 5 hottest real estate markets in the state of Illinois:

  1. Lincoln Park
  2. Canton
  3. Naperville
  4. Springfield
  5. Woodstock

Lincoln Park

Lincoln Park is a neighborhood in Chicago with a particularly young demographic, it seems that this is one factor that has increased demand in this area.  

The real estate market in Lincoln Park is not very competitive in terms of demand at this time, which indicates a buyer’s market right now. The median home price in Lincoln Park in Sept 2022 was $640,000, which was up 17% from Sept 2021.

In Sept of 2022, there were 417  homes sold in Lincoln Park, a 26.3 % decrease in sales from the same period in 2021. Looking back at the last 3 years, sales peaked in June 2021 at 751 sales.

The median days on the market is 59, which indicates a balanced market. Compared to Sept 2021, the median days on the market have gone up by 390%. 

Unlike many areas of the state and the nation where we see median prices dropping, and significant decreases in sales, Lincoln Park’s metrics look great in terms of YOY price growth. However, the sharp decline in sales over the past three years could indicate a shift in the market.


Canton is the largest city in Fulton County, Illinois. A great palace to live according to residents, where the cost of living is low paired with a high quality of life.

The real estate market in Canton is currently a mildly competitive market. The median home price in Canton for Sept 2022 was $103,500, roughly just 1/4th of the national medan price. Canton had a YOY median price increase of 11.3% from Sept 2021.

In Sept 2022, 13 homes were sold, 76.1% lower than Sept of 21. Looking back over the past three years, the peak of the number of homes sold was in July 2020 at 35 homes sold.

The median days on the market is 84, and it’s down 41.7% compared to last year. Areas with a small number of sales tend to fluctuate considerably, and it is not necessarily a trend. Worthy of notice is the fact that in May 2020, the median days on the market was 276 days which is 402% higher than Sept 2022. 


Naperville is a top-ranked community in which to live, raise children and retire. Home to world-class parks and one of the best public library systems in the world, Naperville is one of the most desirable communities for living in the state of Illinois. 

Naperville is currently a balanced Real Estate market, not favoring either sellers or buyers particularly. The median price of a home in Sept 2022 was $485,000, up 16.2% from Sept of 2021.

In Sept 2022, 162 homes were sold, which is down 26.4% from Sept of 2021. Looking back three years, the peak in the number of sales was June 2021, with 407 home sales for the month.

Median days on the market in Sept  2022 were 52, which is up 550% from Sept 2021. Due to the small size of the market, there are significant fluctuations in the number of sales and days on the market from month to month.


Springfield is the capital of the state of Illinois, and it is best known for being the home of Abraham Lincoln, the 16th president of the US. It is a town very rich in history and the local community makes it a point to highlight its heritage.

Springfield is currently a very competitive Real Estate market. The median price of a home in Sept 2022 was $155,500, up 11.1% from Sept 2021. The peak of housing prices in the last three years happens to be July 2022, when the median price reached $170,750. Considering the moderate but steady home values trend in Springfield, we can see this is a positive factor showing that the area has not been overvalued.

There were 156 homes sold in Sept 2022, an 18.3% drop from Sept 2021. The peak in the number of sales was in June 2021, when 220 homes were sold for the month.

Median days on the market in Sept 2022 was 8 days, an 85.2 % decrease from Sept 2021. Sales are not slowing down, and demand keeps growing in Springlfield.


Aurora is a suburb of Chicago but that did not take away from Aurora being named the best city to “live the American dream” in the US. It is also known as “the city of lights” because it was one of the first in the nation to illuminate its streets with electric lights.

The real estate market in Aurora is a neutral or balanced market. The median price of a home in Sept 2022 was $270,000, up 11.6% from Sept 2021. 

185 homes sold in Sept 2022, down 34.9% from Sept 2021. Looking back over the past 3 years, sales peaked at 338 in Aug 2021.

The median days on the market have increased from 11 days in Sept 2021 to 51 days in Sept 2022, a 363% increase which is rather significant.

Higher Mortgage Rates Could Slow Price Growth in Illinois

How will interest rates affect the housing Illinois housing market? The state of Illinois’s affordable median home price is an advantage to weather the high mortgage rates storm. 

While some areas of Illinois have had significant increases in home prices year over year in 2022, other areas are more moderate in growth. We have extremes where places like Macon County had an increase in median list price of 44.6% while the lower end at Cook County only had a .2% increase in median list price year over year.

As of early November 2022, the 30-year fixed rate mortgage is above 7% on average. The Feds just announced yet another 75% increase to the Federal Funds rate, which means a higher cost of borrowing in many areas. Although not necessarily tied to mortgage rates, an increase in rates in business loans, credit cards, etc. puts additional pressure on budgets, ultimately impacting how much house someone can afford. 

Future speculation on Illinois home prices is a bit risky, but if things keep going the way they have gone so far, Illinois will probably not have a dramatic home price correction unless mortgage rates go significantly higher. Considering that the median price of homes is relatively low compared to the national average, the effect that rate increases have on Illinois’ housing market may be tempered.

Key Market Stats for the Illinois Housing Market:

As of the latest compiled housing report with data through Sept 2022.

  • Median price: $261,200 - up 2.2% from 2021
  • Existing home sales: 13,680 - down 19.1% from 2021
  • Median days on the market: 51, up 183% from 2021
  • Months supply of inventory: 3 up 0% 2021- no change

Illinois Historic price changes & affordability

The Illinois housing market has seen moderate appreciation for years. Over the last 3 years, homeowners saw their homes appreciate by 21% in 36 months which is a very modest rate of appreciation. At the current median home price of $261,200 and the average household income of approximately $54,000 a year, the value in housing in Illinois is much better than in many areas of the nation.

The steep rise in mortgage rates has shrunk affordability across the nation. Fortunately, the Illinois median home price is considerably below the national average, which will help soften a correction in prices.

Key Takeaways

  1. The housing market has started shifting nationwide. Illinois has not seen break-neck appreciation; therefore, it is likely that prices will hold relatively steady with only modest declines, although year-to-date home value numbers seem concerning.
  2. Real Estate markets are highly local, and even within the same state, there will be areas that are projected to be hit hard by the market shift, and others will fare better.
  3. Timing the market for buying or selling is a big gamble. If it makes sense for you to buy, go ahead and buy a home. For sellers, if you have to sell in the next 12-24 months, you may want to consider doing it sooner than later, especially if you are in an area that may be considered overvalued and has a high potential for house prices to drop.

2023 Illinois Housing Market FAQ