Rise in home value has not stopped buyers from moving to Rockford

ROCKFORD, Ill. (WTVO) — Home values have continued to rise in the area and that has not stopped people from moving to Rockford.

Realtors said despite the rise in housing equity in the Rockford area, renters and homebuyers are still coming to the city and surrounding area because of affordable prices.

Housing Statistics showed that Rockford area homes have gained almost $24,000 in equity in 2024, according to Northwest Illinois Alliance of Realtors.

“Supply has been low for years, which drives up the price of housing,” said local realtor Ann Brady. “I have worked with several people in the last year moving from the suburbs because housing is so much more reasonably priced here.”

Supply may be catching up to demand, but new listings in January were up 49% from last January. The largest increase in new listings since tracking began.

“Everything is more expensive,” said rental property owner Cesar Meza “If I wanted to buy more property, I wouldn’t be able to at this moment because of the combination of the higher prices and the interest rates.”

Meza said rent prices have exploded as well.

“When I first got into the first multifamily, which was a duplex that was two bedrooms, one bath. I believe average rents were about $600,” said Meza. “Now average rents are anywhere between $850 and $1050 for two bedrooms, one bath.”

For Meza, it is about providing housing to Rockfordians or anyone who wants to come to Rockford.

“What I am seeing is that we are at a point where we are getting resistance on the rents. Like, this is why I want to stay on the low end,” Meza said.

Realtors said they see prices beginning to level off in 2025 as interest rates plateau and supply continues to catch up.