With low inventory, high demand in areas like Machesney Park and Loves Park, coupled with rising housing prices nationwide, it may not come as a surprise that the Rockford metro area is ranked among the worst in the country for first-time homebuyers.
The Rockford metro ranks as the fourth-worst area for first-time homebuyers, according to a study conducted by consumer research organization ConsumerAffairs.
“The average price of homes in Rockford has doubled since 2014,” said ConsumerAffairs about their ranking “When considering other factors such as Illinois’ notoriously high tax rates, increasing mortgage rates, and high crime rates, it comes as no surprise that the area might not be ideal for first-time homebuyers.”
The research organization created their ranking by scoring 153 metro areas across the nation on nine financial and quality-of-life factors. Each metro received a financial friendliness score and a quality-of-life score, which were added together for an overall score.
The financial friendliness score measures includes factors like mortgage rates, home prices and property taxes, as well as taking into account changes in home values over time. The quality-of-life score components include crime rates, unemployment rate, climate and racial diversity.
The Rockford metro ranked ahead of only Memphis, Tennessee; Lubbock, Texas; and Anchorage, Alaska in the ranking.
In October, two Rockford metro towns, Machesney Park and Loves Park, were named the most competitive markets in Illinois, according to the Northwest Illinois Alliance of Realtors.
The average home price in Loves Park sat around $158,000 in October, up 6% from the same time last year. The average home price in Macheseney Park was reported at over $200,000, up significantly over the same period in 2022.
“This is the least affordable housing market facing first-time buyers since the early 1980s,” said Susan M. Wachter, a professor of real estate at the Wharton School at the University of Pennsylvania to ConsumerAffairs.
Raleigh-Cary, North Carolina topped the list of best metro markets for first-time homebuyers, followed by Utah’s Provo-Orem area, Naples-Marco Island in Florida, California’s Oxnard-Thousand Oaks-Ventura metro and Florida’s Cape Coral-Fort Myers.
By: Blake Dietz
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
