4 Worst Illinois Cities To Buy Property in the Next 5 Years, According to Real Estate Agents
Written by
Sean Bryant
Edited by
Amber Barkley
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Are you looking to purchase a house in Illinois? The Prairie State — especially Chicago — is known for its Chicago-style hot dogs, deep-dish pizza and Wrigley Field. With the state being 390 miles long from north to south and 210 miles from east to west, you have options when it comes to the location where you purchase property.
Some locations, though, are better than others — and some you probably want to avoid altogether. Here’s a look at the four worst Illinois cities to buy property in the next five years, considering crime rates, property taxes, poverty levels and appreciation potential.
Cahokia Heights
Cahokia Heights is close to the Illinois-Missouri border, offering a short commute for those working in St. Louis. However, you might want to avoid purchasing property in Cahokia Heights due to the high poverty rates, the declining population, and pollution. Since 2000, Cahokia Heights has seen a 16.2% population decrease, as reported by City-Data.com.
“I would not buy property in Cahokia Heights due to its persistent population decline and an underfunded infrastructure,” said Yancy Forsythe, founder of Missouri Valley Homes. “Cahokia Heights faces serious challenges that make it a risky investment for property buyers like myself.”
Additionally, the number of residents living in poverty is 30.3%, which is much higher than in neighboring areas. High poverty rates and a declining population indicate low to no appreciation potential. If those factors weren’t enough to deter you from Cahokia Heights, the pollution might. Cahokia Heights ranked 41 on City-Data.com’s list of counties with the highest Nitrogen Dioxide air pollution readings and 75 on the highest Sulfur Oxide air pollution readings in 2012.
Peoria
“Peoria’s economic base, heavily reliant on manufacturing, has faced major disruptions due to deindustrialization,” said Jim Sandford, real estate expert and founder of Freedom Properties Direct. “While the city has made attempts to diversify its economy, job opportunities remain scarce compared to other Illinois cities. The declining job market has contributed to population loss, which has resulted in falling property values.”
Peoria ranked third on NBC Chicago’s 2023 list of worst-appreciating cities, with a rate of 61.7%. For reference, between 1998 and 2002, the average home value grew 154%. Peoria’s population growth has receded 1.7% since 2000, according to City-Data.com, indicating more people are leaving rather than moving to the city.
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Plus, about 17.4% of the city lives in poverty, and the crime index is at 509.4, which is much higher than the national average.
Purchasing a house in Peoria means you can pay around 2.4% of the value in property taxes, or around $3,662. This is slightly higher than the Illinois average of 2.08%. If you want to purchase a property in Illinois, steer clear of Peoria.
Springfield
Unlike Cahokia Heights and Peoria, Springfield has seen a modest population growth of 1.6% since 2000, City-Data.com reported. The poverty rate is also lower than Cahokia Heights’, at 15.0%; however, Springfield holds the second spot for the cities with the smallest appreciation percentages since 1998, at 61.4%. Property taxes are also closer to the state average, at 2.1%.
Despite the modest population growth and a lower poverty rate, Springfield has a higher crime rate than the U.S. average at 441.5.
New single-family house construction has also slowed over the past five years, indicating the city is not attracting new residents. This means that purchasing a home in Springfield could lead to stagnant growth. Illinois has plenty of other cities that show promising growth results compared to Springfield.
Decatur
Decatur ranked sixth on the list of cities with the smallest home value growth at 62.3%. Even if you aren’t looking for appreciation, you might struggle to find employment opportunities. The population has decreased by 15.6% since 2000 in Decatur, according to City-Data.com, with a poverty rate of 18.0%. A declining population and a high poverty rate highlight minimal job opportunities.
Crime is higher than the national average at 373.1, with more robberies, assaults, burglaries and auto thefts than the state’s average. Plus, property taxes are assessed around 2.4% of the home’s value, which is also higher than the average in Illinois.
Combine all of these factors, and you might want to avoid purchasing property in Decatur.
The Bottom Line
Were these cities originally on your list of potential places to call home? If so, you might want to consider other cities, like Evanston, Naperville and Aurora. These cities all have low crime rates, positive population growth and promising job markets.
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