While most home prices have doubled in the last 25 years, homeowners in some cities have struggled to appreciate, especially in Illinois.
According to a recent estudio de SmartAssetOf the 400 US metropolitan areas ranked by home price growth since 1998, six Illinois cities rank in the bottom 15.
On average, home values in the US grew 154% from the first quarter of 1998 to the fourth quarter of 2022, according to the study. However, the 15 worst-valued cities only grew by 66% on average during that quarter century.
THE 15 MARKETS WITH THE LESS GROWTH IN LONG-TERM HOME VALUE
| 1. | Montgomery, Alabama | 59.6% |
|---|---|---|
| 2. | Springfield, Illinois | 61.4% |
| 3. | Peoria, Illinois | 61.7% |
| 4. | Bloomington, Illinois | 61.7% |
| 5. | Rockford, Illinois | 61.7% |
| 6. | Decatur Illinois | 62.3% |
| 7. | Saginaw, Michigan | 63.5% |
| 8. | Kokomo, Indiana | 64.7% |
| 9. | Lawton, Oklahoma | 67.8% |
| 10. | Toledo, Ohio | 67.8% |
| 11. | Charleston, West Virginia | 69.3% |
| 12. | Cleveland, Ohio | 69.4% |
| 13. | Kankakee, Illinois | 70.7% |
| 14. | Macon, Georgia | 70.7% |
| 15. | Bay City, Michigan | 71.2% |
Montgomery, Alabama, is the fastest growing city, with prices up just 59.6% since 1998. The city has a declining population, with nearly a quarter of its residents living in poverty, according to US Census data.
Illinois cities occupy the next five places in the ranking, with an average growth of prices of only 61.8%. Over the past nine years, the state has experienced a steady outflow of residents, which has driven prices down. Reasons for migration include a desire to be closer to family, job changes and retirement, according to the United Van Lines National Moving Study 2023.
By contrast, the city with the fastest home price growth was booming tech hub Austin, Texas, where home values have skyrocketed 354% in that time span.
California cities also held the top spots. The state has the largest housing shortage across the country, which has pushed prices up, especially in big cities like Los Angeles and San Francisco. There, housing prices have grown by 324.8% and 283.8%, respectively.
Values in Florida have also grown steadily over the years, with Miami and Naples recording slightly more than 290% price growth since 1998.
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