Between 2018 and 2023, Illinois’ housing market didn’t move in one direction—it split along urban and rural lines. In cities like Chicago, buyers faced tight inventory, rising prices, and fierce competition for condos and compact homes. In smaller towns and rural areas, the pace was slower, but demand still surged in unexpected ways, especially during the pandemic housing boom. These differences shaped who was buying, what kinds of homes were in demand, and how far buyers were willing to go for space or affordability. Compared to the decade before, the divide between city and country became more pronounced—revealing just how differently the housing story plays out across the state.
Urban vs. Rural Market Overview
Urban markets in Illinois – especially the Chicago metropolitan area – dominated home sales and prices compared to rural areas. From 2018 to 2023, the majority of Illinois home purchases occurred in and around Chicago. In 2022, the nine-county Chicago Metro Area accounted for over 112,000 home sales, compared to only about 49,000 sales in the rest of the state combined. By 2023, sales declined in both markets due to economic conditions, but Chicago’s share remained dominant with approximately 89,000 sales versus 42,000 in all other regions.
Home values in urban Illinois remained significantly higher than in rural areas. In 2023, the median sale price in the Chicago metro reached about $324,900, while homes in southern Illinois sold for much less – around $140,000 in the Carbondale-Marion area. Mid-sized downstate cities like Springfield and Peoria had median prices between $150,000-$166,000, roughly half the Chicago-area median.
Market Dynamics and Pace
The pace of the market varied between regions. In Chicago proper, homes tended to stay on the market slightly longer with higher inventory compared to remote areas. By late 2023, the city of Chicago had about 2.2 months’ supply of homes, while some smaller Illinois markets had under 1.0 month of supply.
Both urban and rural Illinois experienced a seller’s market by 2021-2022, with record-low inventory and quick sales statewide. Homes in 2021 often sold in just over one month on average (approximately 33 days), much faster than in 2018 when the average was about 52 days. This frenzy affected both city neighborhoods and country towns, though it was most pronounced in popular suburban and small-town areas where buyers sought more space.
Property Types and Preferences
The types of homes purchased varied significantly between urban and rural Illinois. In Chicago and its suburbs, a substantial portion of purchases were condominiums or townhouses, while rural areas saw almost exclusively single-family house sales.
Statewide data from 2018 shows about 116,600 single-family homes sold versus 44,400 condo/townhome units – roughly 72% single-family homes and 28% condos. These condos were overwhelmingly concentrated in urban locations with high-rise or townhome developments, while most rural counties had very few condos. From 2018 through 2023, single-family houses consistently represented about two-thirds to three-quarters of all home purchases in Illinois.
Pandemic-Driven Shifts
Home size and style preferences shifted notably during the pandemic. In 2020-2021, buyers increasingly sought larger homes with yards as remote work and stay-at-home living became common. Many Illinois families in city apartments or small houses decided to upsize to bigger properties.
Statewide sales of detached houses jumped by about 13% in 2020 and another 7% in 2021, outpacing growth in condo sales. Meanwhile, condo sales initially lagged and then rebounded – Illinois condo transactions actually fell slightly in 2019, then surged nearly 27% in 2021 when urban buyers returned to the market. By 2022-2023, condos regained popularity as some buyers looked for more affordable options amid rising house prices.
New construction remained a relatively small segment of the market. The vast majority of homes purchased were existing homes rather than new builds. Even in the earlier decade, only about 9% of Illinois home purchases were new construction, and this proportion likely remained low through 2023. Whether in urban or rural areas, buyers typically purchased existing houses or condos rather than newly built homes.
Changing Homebuyer Behavior
Upsizing Trend
With mortgage interest rates hitting historic lows in 2020 and 2021, many homeowners took the opportunity to sell and move into larger homes. For instance, families in city condos often sold to purchase larger houses in suburban or semi-rural areas to gain space for home offices and yards. This contributed to the surge in single-family home sales and rapid price increases for larger properties during this period.
Downsizing Among Seniors
Simultaneously, downsizing occurred among older homeowners. During 2018-2023, many Baby Boomers who owned large family homes for decades chose to downsize to smaller houses or condos to reduce maintenance or unlock home equity. The strong market in 2020-2022 provided an excellent opportunity for these downsizers to sell quickly at high prices.
Many seniors actually decided to age in place longer during the pandemic, which limited housing supply. The typical home seller’s age rose into the 60s by the early 2020s, indicating many sellers were older individuals potentially moving to retirement-friendly situations.
Second-Home Purchases
The pandemic period saw a notable spike in vacation and second-home purchases. Some city residents bought second homes in rural parts of Illinois or neighboring states as personal getaways. According to the National Association of Realtors, U.S. vacation-home sales increased over 50% in 2020-2021 compared to the previous year.
Areas with recreational appeal or natural beauty, like the Galena region in northwest Illinois or lakeside communities, saw increased interest. This trend was fueled by low interest rates and desires for personal space. By 2022-2023, this boom cooled as interest rates rose, but the impact remained significant – the share of U.S. home sales attributed to vacation homes rose from around 5% in 2019 to about 6.7% in early 2021.
Buyer Demographics and Migration
Aging Buyers and Rising Income Requirements
The profile of Illinois homebuyers changed significantly from 2018 to 2023. Buyers became older on average as younger adults found it harder to afford homes. In the late 2000s, the typical first-time homebuyer in Illinois was around 30 years old, but by the early 2020s, this median age had climbed well into the mid-30s. Nationwide, the median age for first-time buyers reached 36 in 2022 and about 38 by 2023.
Income levels of buyers also increased substantially. By 2023, the median household income of U.S. homebuyers exceeded $100,000 – much higher than a decade prior. Chicago area buyers especially needed high incomes to afford rising prices. Meanwhile, many lower-income Illinoisans remained in the rental market, unable to enter homeownership. This contributed to the lower share of first-time buyers – only about 24-26% of homebuyers were first-timers in 2022-2023, down from historically around 33%.
Migration Patterns
Urban-to-rural migration became significant during the pandemic. As remote work expanded, some Chicago residents relocated to smaller towns within Illinois or to other states. The Chicago metro area experienced net population outflow in 2020-2021, losing about 91,000 residents. Some moved to other states, while others chose less dense parts of Illinois.
Census estimates showed that during the first pandemic year, many micropolitan areas (small towns under 50,000) actually gained population after years of decline. Local real estate agents in downstate towns reported increased interest from out-of-town buyers in 2020 and 2021.
Rural-to-urban migration was not a major trend – in fact, the opposite occurred. Illinois’ rural counties have generally been losing population over the past decade. By 2023, data showed rural counties in Illinois were shrinking faster in percentage terms than urban counties. Redfin tracking found Chicago consistently had a net outflow during 2020-2021. Many Chicago residents headed for warmer cities like Phoenix, Las Vegas, Miami, or moved to the suburbs.
Price Trends and Market Conditions
Illinois home prices rose steadily from 2018 through 2023, with especially sharp increases during 2020-2021. In 2018, the statewide median sale price was around $202,000. By 2023, it had climbed to roughly $269,000 – a 33% increase over five years.
Most growth occurred during the pandemic boom: 2020 saw steady increases, 2021 experienced double-digit appreciation, and 2022 continued upward. From 2019 to 2021 alone, the Illinois median price jumped from about $209,000 to $250,000. Even as sales volumes fell in 2022 and 2023, prices remained resilient; the 2023 median price was actually 3.5% higher than 2022’s, demonstrating that housing supply remained extremely tight.
Urban vs. Rural Price Trends
Urban and rural price trends showed interesting variations. The Chicago metro area saw robust appreciation through most of this period, but by 2022-2023, price growth in Chicago proper had plateaued. In 2023, the median price in the city of Chicago decreased slightly (-1.5% from the previous year).
In contrast, many smaller markets saw larger percentage increases – Rockford, Bloomington, and Champaign experienced 7-12% median price growth in 2023. This represented catch-up growth, as these markets started from a much lower price point and had room to rise quickly when demand increased. Overall, every region of Illinois experienced price increases during this period, though at varying rates.
Inventory and Market Speed
Market conditions dramatically shifted toward a seller’s market. In 2018, Illinois had about a 3.5-month supply of homes for sale. By 2020, inventory plunged to around 2.1 months, and 2021 saw an extreme low of just 1.4 months’ supply – far below the 5-6 months considered a balanced market.
Homes sold increasingly quickly as a result. The average days on market dropped from 50 days in 2019 to just 28 days in 2022. Well-priced homes often received multiple offers within days of listing, creating bidding wars in desirable areas.
By 2023, rising mortgage rates (which exceeded 6-7%) cooled the market somewhat. Sales volume in Illinois dropped significantly – from 193,700 homes sold in 2021 to 160,900 in 2022 and just 132,000 in 2023, the lowest annual sales in over a decade. This decline allowed inventory to increase slightly (up 5.9% from 2022), and the average time to sell lengthened marginally to 29 days.
However, market conditions still strongly favored sellers. Many homeowners with low-interest mortgages chose not to list their homes, keeping supply limited. Thus, even with fewer buyers in 2023, competition remained for available properties, supporting price stability.
Regional Market Variations
Chicago Metropolitan Area
The Chicago metropolitan area, Illinois’ largest market, behaved somewhat differently than downstate regions. Chicago’s metro experienced strong price growth and record sales in 2020-2021, followed by significant slowdowns in 2022-2023. Metro Chicago’s closed sales fell by 20% in 2023 compared to 2022, though prices still rose about 4.6% on average.
The city of Chicago itself saw unique patterns: approximately 22,400 home sales in 2023 (down from 28,300 in 2022) with a median price of $330,000 – slightly lower than the previous year. This small price decline was unusual and likely reflected softness in the condo market. In contrast, Chicago’s suburbs generally maintained or increased in value as families continued seeking houses in suburban communities.
Central and Southern Illinois
Central and Southern Illinois experienced different dynamics. While these areas had lower sales volumes, they saw healthy price appreciation, especially during the pandemic boom. The Bloomington-Normal area (McLean County) recorded a 2023 median home price of $225,000, up 12.5% from the previous year. Champaign-Urbana reached a median of $199,500, up 7.3%.
These smaller cities benefited from overall affordability – local buyers could bid up prices while keeping homes under $250,000 in many markets. The Rockford MSA saw its median price increase to $173,000 in 2023, an 8% rise. Many of these communities had experienced price stagnation in the early 2010s, making the recent appreciation especially significant for homeowners.
Sales activity slowed across all regions in 2022-2023. Southern Illinois areas like Carbondale-Marion experienced an 18.8% drop in sales in 2023, while Springfield saw a 14.8% decline. Despite fewer sales, most downstate markets still had more demand than supply, supporting continued price increases.
Historical Comparison: 2018-2023 vs. 2008-2017
The contrast between 2018-2023 and the prior decade is striking. The 2008-2017 period included the aftermath of the housing crash and a long recovery. Illinois’ housing market from 2008-2012 was depressed, with falling prices and high inventory, especially in urban areas hit by foreclosures.
From 2008 to 2017, Illinois home prices barely grew – the state had one of the nation’s slowest appreciation rates during those years. One analysis found that from late 2007 to 2019, Illinois home values increased only about 0.2% annually on average. By 2017, the statewide median price (~$195,000) was just returning to pre-recession levels.
The 2018-2023 period saw much faster growth, with prices rising approximately 5%+ annually on average, with higher spikes in 2021. This recent trajectory represented a sharp departure from the stagnant market of 2008-2017.
Sales Volume Differences
Sales volume patterns also differed significantly. The housing crash caused sales to plummet around 2008-2011, bottoming out around 2011-2012 before gradually rebounding. By 2015-2017, sales were growing modestly each year but never boomed during the 2008-2017 decade.
Illinois had about 164,000 homes sold in 2017, still below mid-2000s peaks. The real surge came in 2020-2021, when sales exceeded anything seen in the previous decade, reaching nearly 194,000 in 2021 – an all-time recent high. Overall, despite ending with a slow 2023, the 2018-2023 period averaged higher annual sales than the prior decade.
Market Balance Shift
Inventory and market balance completely reversed between these periods. From 2008 to about 2012, Illinois had excess homes for sale, creating a buyer’s market where properties sat for months and buyers could negotiate lower prices. By 2018, inventory had tightened to 3-4 months supply, and by 2020-2021, it became one of the strongest seller’s markets on record.
Days on market in 2008-2010 often exceeded 90 days; by 2021, this had shrunk to under 30 days. In 2008-2017, Illinois buyers had time and choices; in 2018-2023, they faced quick decisions and fierce competition.
Demographically, the earlier decade had more participation from younger buyers and investors purchasing foreclosures. The 2018-2023 market had fewer distressed sales and more traditional buyers, albeit older on average. In 2008-2017, many Illinois homeowners were underwater on mortgages or rebuilding equity, limiting move-up purchases. By the late 2010s, improved equity positions allowed more freedom to buy and sell until interest rates spiked in 2022.
In summary, 2008-2017 was characterized by recovery and stabilization with flat prices and ample supply, while 2018-2023 brought expansion and acceleration with rising prices, low supply, and unprecedented market heat during 2020-2021. Illinois transformed from one of the nation’s slowest housing markets post-recession to joining the nationwide housing boom of the early 2020s.
References
- A closer look at Illinois home buyers – Illinois REALTORS®
- Vacation Home Sales Surges During Pandemic – National Association of REALTORS®
- First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High – National Association of REALTORS®
- In 1st Full Year of Pandemic, Chicago and Other Big Metros Lost Residents – Chicago News | WTTW
- Redfin: Outflow of Chicago residents slowing – Chicago Agent Magazine Trends
- Illinois’ rural counties shrink fastest in 2023 – Illinois Policy
- Illinois house value growth nation’s 2nd worst in 2019 – Illinois Policy Institute
