HomeReal EstateSpringfield, IL

Springfield, IL

⚖️ Balanced Market
Median Price
$194,500
↗ 0.0% YoY
Median Rent
$873/mo
Cap: 5.4%
P/R Ratio
18.6x
Nat'l: 18x
Days on Market
35
days avg
Ocity Verdict
⚖️ NEUTRAL

📊 Fundamental Scores

Risk Grade: C
50
Affordability
50
Investor Yield
50
Market Temp
50
Boomtown Score

🎯 The Bottom Line

Springfield IL shows a balanced market with neutral verdict; steady prices and moderate supply create a hold scenario for investors seeking stability over high growth.

📈 Price History

Zillow Home Value Index (ZHVI) · Updated monthly
$173K$148K
Jul 23Dec 24May 26
Current
$173K
3Y Change
+16.5%
3Y Peak
$173K

📊 Market Activity

Source: Redfin · 2026-05-31
Sale-to-List
101.2%
Sellers market
Price Drops
30%
Buyers have leverage
Months of Supply
1.1
Tight supply
Gone in 2 Weeks
81%
Highly competitive
Homes Sold
133
New Listings
193
Active Inventory
143
Pending Sales
145

📈 Market Analysis

Market Cycle

The Springfield market is in a stabilization phase with a 0.0% YoY change indicating flat price appreciation. The 35 DOM suggests moderate buyer interest, while the 97.9% Sale-to-List ratio shows sellers are achieving near-asking prices, reflecting a balanced environment without strong momentum.

Supply & Demand

Inventory stands at 123 homes with 80 sold and 87 new listings, creating a 1.5 Months of Supply. This indicates a slight seller's market but remains balanced. The 45.3% off-market in 2 weeks highlights that nearly half of properties move quickly, signaling pockets of demand.

Pricing Power

Buyers retain some leverage with a 36.6% Price Drops rate, yet the 97.9% Sale-to-List ratio limits negotiation room. The P/R 18.6x (Price-to-Rent) suggests moderate affordability, with pricing power constrained by steady demand and limited inventory growth.

Springfield, IL Housing Market Forecast 2026–2028

🔮 Springfield Price Forecast 20262028

Based on 5-year Zillow ZHVI trend analysis · Statistical projection
📈 Upward Trend
PROJECTEDNOW$173K2027$177K 2.5%2028$185K 6.9%20232024Now
$194K$141K
Current
$195K
2026
Projected
$177K
2.5% by 2027
Projected
$185K
6.9% by 2028
5yr CAGR:+5.4%
Confidence:High
R²:0.98

Springfield, IL Housing Market Forecast 2026–2028

For those wondering, "will Springfield home prices drop," the current data suggests a period of stabilization rather than a significant correction. The Springfield housing market forecast for 2026-2028 points toward modest, single-digit appreciation, anchored by a median home price of $194,500 and a price-to-rent ratio of 18.6x, which is nearly identical to the national average. This equilibrium indicates balanced conditions, with a market temperature of 50/100 and a neutral buy/rent verdict. While the zero percent year-over-year price change signals a cooling from the 5-year CAGR of 5.3%, the 35 days on market shows that well-priced homes still find buyers without excessive delays.

The local economy in Springfield, Illinois, provides a stable foundation, anchored by state government and healthcare sectors, though significant job growth is not projected. Affordability remains a key advantage, with median rent at $873/mo, making homeownership accessible for many. However, the risk grade of C suggests that external economic factors could create headwinds. When analyzing Springfield real estate Springfield 2027 trends, the 5-year price change of 29.8% indicates strong historical performance, but future growth will likely be more subdued. The market will likely favor buyers seeking long-term stability over speculative gains, with prices in the range of the recent $124,568 – $161,800 5-year low-to-high band expanding gradually.

Disclaimer: This forecast is a statistical projection based on historical price trends and should not be considered financial advice. Actual market outcomes may vary due to economic conditions, interest rates, local regulations, and other factors.

🏠 Rent vs Buy Analysis

Monthly Costs

Buying at $194,500 with a typical mortgage implies monthly costs around $1,200-$1,400 (including taxes and insurance), exceeding the $873/mo rent. The P/R 18.6x ratio favors renting short-term, as ownership costs are higher without appreciation.

5-Year View

Flat 0.0% YoY suggests limited equity growth; renting preserves capital. If appreciation accelerates to 2-3%, buying could break even in 5 years, but current 1.5 months supply supports stable prices, not rapid gains.

When to Rent

  • Short-term stays under 3 years
  • Seeking lower monthly outlay vs ownership
  • Avoiding maintenance and property taxes

When to Buy

  • Long-term hold over 7+ years
  • Expecting local job growth boosting demand
  • Ability to leverage low rates for cash flow

🧮 Can You Afford Springfield? Interactive Calculator

Income Reality Check

Can you actually afford Springfield?

$
20% ($38,900)
6.5%
Monthly Gross Income$6,667
Principal & Interest$983
Property Tax (2.23% IL)$361
Insurance$67
Total PITI$1,412
Cost Burden: 21.2% of Income

Great! At 21.2%, this mortgage falls within healthy financial limits. You have strong purchasing power in Springfield.

💰 Investment Thesis

Cash Flow

At $194,500 purchase and $873/mo rent, gross yield is 5.4%. After expenses (taxes, insurance, maintenance), net cash flow is ~$200-300/mo, yielding a 2-3% cap rate. Neutral verdict supports stable, not high, returns.

House Hacking

Multi-unit potential exists in Mid-Range areas; renting a portion can offset 50-70% of mortgage. With 35 DOM, quick acquisition possible, but 36.6% price drops indicate room for negotiation to improve entry price.

Target Investor

Suites long-term buy-and-hold investors seeking steady 4-5% total returns (cash flow + flat appreciation). Not ideal for flippers due to 0.0% YoY and 97.9% sale-to-list; better for those prioritizing low risk (Grade C) over high growth.

🏦 For Investors
See Full Investment Analysis — ROI Projections, Cap Rate, Cash Flow →

🏘️ House Hacking Calculator Interactive Calculator

House Hacking CalculatorOwner-Occupied Multi-Fam

$
%
$
%
%
Net Monthly Cash Flow
-$110/mo
Cost to live (better than renting?)
Cash on Cash
-8.5%
Total PITI (Mortgage)
-$1,603
Gross Rent (2 units)
+$1,746
Vacancy & Expenses
-$253
Total Capital Needed$15,560

🗺️ Neighborhood Breakdown

Entry-Level

Suburban areas like Southeast Springfield offer homes under $150k with rents $700-800. High 36.6% price drops create buyer opportunities, but 1.5 months supply keeps competition moderate. Ideal for first-time investors targeting 5%+ yields.

Mid-Range

Central neighborhoods like Lincoln Park feature $180-220k homes with $850-950 rents. Balanced 97.9% sale-to-list and 35 DOM suit house hackers; 0.0% YoY ensures stable entry without overpaying.

Premium

Northside Arlington Heights commands $250k+ with $1,000+ rents. Lower 45.3% off-market activity and 1.5 months supply favor sellers; P/R 18.6x makes it less affordable but offers prestige for long-term holders.

⚠️ Risk Factors

Flat Appreciation
0.0% YoY indicates no price growth, limiting equity build-up and exit profits for investors.
High Price Drops
36.6% of listings drop prices, signaling buyer resistance and potential overvaluation in some segments.

Housing Decisions

Go deeper on Springfield housing