Illinois Homeownership Hits Decade High: Why Now Might Be the Time to Apply

Understanding the Illinois Homeownership Surge

Illinois homeownership has reached its highest level in over ten years, marking a shift in both buyer behavior and market opportunity. In 2024, the state’s homeownership rate climbed to 68.5%, signaling renewed confidence among Illinois residents. For anyone considering buying a home, this data highlights a rare moment of alignment between opportunity and access. LBC Capital helps clients take full advantage of this market by providing expert mortgage guidance tailored to Illinois’s unique housing conditions.

The state’s latest homeownership rate marks a clear recovery from the mid-2010s, when rates hovered in the low-to-mid 60% range. A combination of buyer momentum, changing market dynamics, and improved mortgage accessibility has contributed to this increase. Unlike national averages that have stagnated or declined in recent years, Illinois is showing steady growth in homeownership, especially outside the Chicago metro area.

Key Factors Driving Homeownership in Illinois

Demographic shifts and millennial buyers

Millennials are leading the charge in home purchases across Illinois. Many of them are reaching life milestones such as marriage, career stability, and parenthood, prompting the move from renting to owning. In suburban and rural counties, this generation has become the largest group of mortgage applicants. With more financial education and digital tools available, younger buyers are entering the market with clearer goals and higher confidence.

Market normalization after the pandemic boom

The housing boom of 2020 and 2021 drove home prices and competition to unsustainable levels. In Illinois, the market has since cooled. This has opened the door for more buyers who were previously priced out or hesitant to engage in bidding wars. Home sales declined by 16.7% year-over-year as of June 2024, according to Illinois REALTORS®. That moderation means less competition and more favorable conditions for serious buyers.

Slight increases in housing inventory

Although inventory remains below pre-pandemic levels, Illinois has seen a gradual increase in available homes. This trend gives buyers more options, especially in mid-tier price ranges. Greater inventory balances the market, creating more opportunities to negotiate and reducing the pressure to make rushed decisions.

Favorable long-term mortgage opportunities

Interest rates have fluctuated, but many buyers are still able to secure competitive rates, especially with expert guidance from mortgage professionals like those at LBC Capital. Locking in a favorable rate on a fixed mortgage provides long-term stability, something that renters and those waiting on the sidelines cannot leverage. Even as rates rise slightly, many borrowers understand the value of home equity and long-term ownership benefits.

Why This is a Strategic Time to Apply for a Mortgage

Homeownership momentum fuels buyer confidence

When a state sees a sustained rise in homeownership, it creates a positive feedback loop. More buyers feel confident stepping into the market, knowing others are doing the same. That momentum can fuel a sense of urgency and help buyers act before conditions become less favorable.

Reduced buyer competition

The current dip in transaction volume means fewer bidding wars and reduced pressure to offer over asking price. This calmer environment allows buyers to shop carefully, make informed offers, and include protective contingencies in their contracts.

Potential to lock in better financing terms

Even with fluctuations, interest rates in late 2024 and early 2025 remain within a range that supports long-term affordability. Mortgage professionals at LBC Capital help clients monitor the market daily and lock in rates at the most favorable moment. This proactive approach can make a substantial difference in monthly payments and overall cost over the life of a loan.

Strong potential for equity growth

Illinois home prices are trending upward. As of June 2024, the median home price reached $315,050, an 8.6% increase from the previous year. Entering the market now allows new homeowners to benefit from future appreciation. With strategic location choices, buyers can maximize equity gains while still purchasing at a reasonable price point.

Challenges Buyers Should Prepare For

Higher insurance costs

Illinois homeowners are facing increased insurance premiums. Over the past three years, home insurance rates have risen nearly 50%, making Illinois the second-highest in the nation for premium hikes. This increase is largely driven by weather-related claims and rebuilding costs. Buyers must account for these expenses when budgeting their monthly obligations.

State and local tax burden

Illinois is known for its high property taxes and state income tax. These costs significantly impact the monthly affordability of a home. While homeownership offers long-term financial benefits, LBC Capital advises clients to factor in all recurring costs—including taxes, insurance, and maintenance—to ensure a financially sound purchase.

Affordability challenges in certain areas

While many parts of Illinois offer reasonably priced homes, some high-demand areas—especially in and around Chicago—still face inventory shortages and high price tags. Buyers looking in these markets may need to expand their search radius or consider homes that require renovation.

Localized inventory constraints

Even though statewide inventory is growing, some neighborhoods and school districts remain highly competitive. In such cases, homes may sell quickly, and buyers need to be well-prepared with financing in place. Working with a mortgage expert at LBC Capital ensures clients are ready to act when the right home appears.

How Buyers Can Maximize This Window of Opportunity

Get pre-approved before house hunting

Pre-approval is not just a formality. It shows sellers that a buyer is serious and capable of securing financing. At LBC Capital, we provide same-day pre-approvals and guide clients through the documentation process. This increases negotiating power and accelerates closing timelines.

Build financial flexibility into your budget

Beyond the purchase price, buyers need to prepare for rising taxes, insurance, and ongoing maintenance. LBC Capital helps clients create realistic budgets that include a financial buffer, reducing the likelihood of being overextended.

Choose location with long-term value in mind

Neighborhoods with growth potential often offer better returns than already-saturated high-cost areas. LBC Capital helps clients identify regions where infrastructure improvements, school upgrades, and job growth suggest rising home values.

Stay informed and work with trusted advisors

Market conditions can change rapidly. Mortgage guidelines, property availability, and rate offers fluctuate weekly. Clients working with LBC Capital receive real-time insights, local market knowledge, and tailored loan strategies. That level of service makes the difference between a rushed purchase and a sound investment.

Why Work with LBC Capital

At LBC Capital, we don’t just offer mortgage loans—we provide personalized strategies. We understand the nuances of Illinois’s real estate landscape and guide clients through every phase of the buying process. From pre-approval to closing, our team ensures transparency, speed, and access to competitive loan programs, including first-time buyer incentives and refinancing options.

Our local expertise helps clients navigate high property taxes, rising insurance costs, and neighborhood-specific challenges. Whether you’re buying your first home or upgrading to your forever home, LBC Capital ensures your mortgage supports your long-term financial goals.