Illinois Housing Market Report & Home Prices

Illinois housing market data: median home price, year-over-year appreciation, inventory, months of supply, days on market, affordability, and what it means fo

Illinois Housing Market Report

Illinois is currently a warm market. The median sale price sits near $289,000, up 5.4% from a year ago, with roughly 44,266 active listings and 3 months of supply. Homes are going under contract in about 32 days on average.

Illinois by the numbers

What makes the Illinois market different

Illinois's median sale price of $289,000 is 31.1% below the $419,300 national median, which places it 35 of 51 states by price level. Year-over-year appreciation of 5.4% ranks 7 of 51, so Illinois is currently a faster-appreciating state relative to the rest of the country.

Inside the Midwest region, the median state price is $261,000, so Illinois runs 10.7% richer than its regional peers — the closest comparisons are Minnesota at $341,000, Wisconsin at $312,000, South Dakota at $302,000, North Dakota at $269,000. That gap matters for loan sizing: at the same rate, a Illinois file carries roughly $28,000 more balance than the regional median, which changes qualifying income and the value of a rate-and-term option.

Illinois statewide numbers hide real spread across its metros. This report tracks 1 Illinois metro: Chicago, IL ($352,000, +6.1% YoY). Price a file off the metro your borrower is actually buying in, not the state average.

Illinois vs the Midwest region and the nation

Metros tracked in Illinois

Midwest states to compare

Illinois MLO licensing guide · Wholesale lenders serving Illinois

Market analysis

Illinois is currently a warm market. The median sale price sits near $289,000, up 5.4% from a year ago, with roughly 44,266 active listings and 3 months of supply. Homes are going under contract in about 32 days on average.

Affordability remains the binding constraint. At the current national average 30-year fixed rate near 6.42%, the typical payment on a median-priced home in Illinois runs about $1,884 per month including taxes and insurance, against a median rent near $1,175. That gap is what determines whether purchase conversations in this market start with payment, with price, or with a buydown structure.

Supply is still tight relative to demand, which keeps competitive offers in play on well-priced inventory. Builder incentives are limited, and permits are running near 16,463 annualized units.

For originators, the practical read is this: pre-approval speed and appraisal-gap strategy still win deals here, and Realtor partnerships should emphasize how fast you can turn a fully underwritten approval.

Illinois housing market questions

Is Illinois a buyer's or seller's market?

Illinois currently reads as a warm market with 3 months of supply. Balanced is generally considered four to six months, so this market is close to balance.

What is the median home price in Illinois?

The median sale price is approximately $289,000 as of 7/24/2026, up 5.4% from a year earlier.

Are home prices falling in Illinois?

No. Median prices are up about 5.4% year over year, though the pace of appreciation has slowed considerably from the 2021 peak.

How much do I need to buy a home in Illinois?

The typical down payment on a closed transaction is near $47,304, and the resulting payment at the current national average 30-year fixed rate is roughly $1,884 per month including taxes and insurance. Low-down-payment FHA, VA, and conventional 3% options can materially reduce the cash required.

What is the housing market forecast for Illinois?

Our directional 12-month range is +3.8% to +7.2% on median price. Confidence is moderate; the rate path is the dominant variable.

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