Top 5 Residential Real Estate Investment Markets in Illinois

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By Trent Seigfried Updated May 24, 2024
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Edited by Michael Yessis

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Pinckneyville is home to the best residential real estate investment market in Illinois.

The 62274 zip code in Pinckneyville presents the greatest opportunity for investors among the 1,864 individual real estate markets in Illinois we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.

Top 5 Illinois residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Pinckneyville1002.0104.54%
2Shelbyville94.72.243.07%
3Johnston City93.11.638.33%
4Du Quoin92.91.6101.51%
5Rockford92.61.991.69%
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1. Pinckneyville

We've identified the 62274 zip code in Pinckneyville as Illinois's best real estate investment market. Here's why.

πŸ”Ž Key data about Pinckneyville

Data pointValueRank in state (of 1,864 markets)
Zip code62274N/A
InvestScore 100Highest
Typical property value $108,624[1]52nd lowest
Five-year appreciation 104.54%[2]the highest
Household income $54,741[3]392nd highest
Affordability ratio 2.057th most affordable
Five-year population growth 0.4%[4]216th highest
Unemployment rate 1.7%[5]16th lowest
Property taxes $1,773[6]29th lowest
Educational attainment 10.8%[7]455th highest
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Pinckneyville (zip code 62274) is the best residential real estate investment market in Illinois. It has the the highest property value appreciation among markets we evaluated, with a 104.54% appreciation of the typical property over the last five years.

Pinckneyville is the 57th most affordable market among the 1,864 Illinois markets we evaluated, with an affordability ratio of 2.0.

2. Shelbyville

The 62565 zip code in Shelbyville is Illinois's second-best residential real estate investment market.

πŸ”Ž Key data about Shelbyville

Data pointValueRank in state (of 1,864 markets)
Zip code62565N/A
InvestScore 94.72nd highest
Typical property value $135,701[8]88th lowest
Five-year appreciation 43.07%[9]94th highest
Household income $61,389[10]342nd highest
Affordability ratio 2.290th most affordable
Five-year population growth 7.2%[11]45th highest
Unemployment rate 4.1%[12]151st lowest
Property taxes $1,962[13]50th lowest
Educational attainment 19.9%[14]353rd highest
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The 62565 zip code in Shelbyville features a typical property value of $135,701, the 88th lowest in the state.

Property values have appreciated 43.07% over the past five years, the 94th highest increase among evaluated markets in the state. Shelbyville homes have an affordability ratio of 2.2, the 90th most affordable in the state.

3. Johnston City

The 62951 zip code in Johnston City comes in at No. 3 in our ranking of residential real estate investment markets in Illinois.

πŸ”Ž Key data about Johnston City

Data pointValueRank in state (of 1,864 markets)
Zip code62951N/A
InvestScore 93.13rd highest
Typical property value $85,965[15]25th lowest
Five-year appreciation 38.33%[16]173rd highest
Household income $54,120[17]398th highest
Affordability ratio 1.618th most affordable
Five-year population growth 15.0%[18]8th highest
Unemployment rate 5.6%[19]285th lowest
Property taxes $1,726[20]26th lowest
Educational attainment 19.6%[21]357th highest
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With a typical property value of $85,965, Johnston City's 62951 zip code features the 25th lowest property values in the state.

Johnston City homes have an affordability ratio of 1.6, the 18th most affordable among the markets we evaluated.

4. Du Quoin

The 62832 zip code in Du Quoin ranks No. 4 among Illinois's residential real estate investment markets.

πŸ”Ž Key data about Du Quoin

Data pointValueRank in state (of 1,864 markets)
Zip code62832N/A
InvestScore 92.94th highest
Typical property value $86,510[22]26th lowest
Five-year appreciation 101.51%[23]2nd highest
Household income $55,152[24]2nd highest
Affordability ratio 1.616th most affordable
Five-year population growth 0.4%[25]214th highest
Unemployment rate 8.6%[26]401st lowest
Property taxes $1,653[27]21st lowest
Educational attainment 12.2%[28]450th highest
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Property values in Du Quoin's 62832 zip code have seen the 2nd highest increase among evaluated markets in the state, with an appreciation of 101.51% over the past five years.

Du Quoin's affordability ratio of 1.6 makes it the 16th most affordable among the 1,864 markets we evaluated.

5. Rockford

The 61101 zip code in Rockford rounds out our top five residential real estate investment markets in Illinois.

πŸ”Ž Key data about Rockford

Data pointValueRank in state (of 1,864 markets)
Zip code61101N/A
InvestScore 92.65th highest
Typical property value $84,145[29]20th lowest
Five-year appreciation 91.69%[30]4th highest
Household income $45,363[31]4th highest
Affordability ratio 1.940th most affordable
Five-year population growth 4.5%[32]78th highest
Unemployment rate 14.1%[33]446th lowest
Property taxes $1,974[34]52nd lowest
Educational attainment 14.8%[35]428th highest
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Property values in Rockford's 61101 zip code rose 91.69% over the last five years, ranking the city 4th highest among evaluated markets in Illinois.

Rockford homes have an affordability ratio of 1.9, the 40th most affordable among the markets we evaluated.

How we rank residential real estate markets in Illinois

We evaluated 1,864 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Illinois.

What is InvestScore?

InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.

  • Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
  • Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
  • Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
  • Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
  • Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
  • Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates  local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

Authors & Editorial History

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