Illinois is more than the Chicago metro area, for which homebuyers rejoice. While property values in Chicago suburbs like Glenview and Northbrook can easily exceed $700,000, one city in the state offers homes at around one-tenth that price.
Illinois first-time buyers who feel like homeownership is just a dream should look beyond the big city to some of the nation’s most affordable housing markets, conveniently located in their own backyard.
Affordable Illinois Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Danville | $72,523 |
| 2 | Galesburg | $94,706 |
| 3 | Alton | $98,491 |
| 4 | Decatur | $99,239 |
| 5 | Granite City | $108,777 |
| 6 | Mount Vernon | $120,380 |
| 7 | Freeport | $120,666 |
| 8 | Rock Island | $124,068 |
| 9 | Peoria | $126,626 |
| 10 | Jacksonville | $132,883 |
1. Danville - $72,523
Situated just 15 minutes from the Indiana border, Danville, with a population of around 28,000, takes the number one spot on our list of most affordable cities in Illinois. A former coal-mining town, Danville offers very reasonably priced housing options and employment opportunities in healthcare, manufacturing, and education. Purchasing the typical home in Danville would come with estimated monthly mortgage payments of a mere $626.
2. Galesburg - $94,706
Galesburg, home to around 30,000, has a rich history, with its origins dating back to 1837. There’s plenty to do in Galesburg, from museums to theatres and 23 city parks. The city is also home to two institutions of higher learning – Knox College and Carl Sandburg College. Plus, the annual Railroad Days festival takes place every June, highlighting the city’s history as an important railway town. The monthly cost of the average home in Galesburg? A very affordable $818.
3. Alton - $98,491
On the shores of the Mississippi River, near St. Louis, Alton is a viable option for homebuyers seeking extreme value. There’s plenty to do here, too, from riverboat tours to nightlife to family activities and a vibrant downtown. Residents will have plenty of money left over each month with which to enjoy it all, thanks to rock-bottom home prices and an estimated mortgage payment of $851 per month.
4. Decatur - $99,239
Abraham Lincoln buffs will love Decatur: The 16th president’s family home was located 10 miles from town. The site of his first political speech and where he was nominated to run for U.S. President are also nearby. But first-time homebuyers are probably more interested in home affordability. Fortunately, you could become a homeowner in this town for an estimated monthly mortgage payment of $857.
5. Granite City - $108,777
The first city on our list to break the $100,000 mark, Granite City is still on the extreme side of the affordability spectrum. Love the outdoors? There are 13 parks in Granite City, as well as 85 miles of well-maintained bikeways throughout the area. Prefer the bigger city lifestyle? St. Louis is located just across the Mississippi River. The estimated average cost of a mortgage in Granite City runs just $940.
6. Mount Vernon - $120,380
An hour and a half east of St. Louis, Mount Vernon is a much smaller town of around 14,000. There’s plenty going on here, though, with a heritage festival, parades, a water park, and more. With an estimated mortgage payment of $1,040 per month, you can focus on other things besides how you’re going to make ends meet.
7. Freeport - $120,666
Known as Pretzel City, USA, Freeport is host to numerous festivals, including the annual Pretzel Fest, held each year around National Pretzel Day. Even more exciting for homebuyers? Home prices in Freeport are less than one-third of the national average. However, this town features another homebuyer benefit: The entire area is geographically eligible for zero-down USDA home loans. Conventional borrowers can expect to pay an estimated $1,042 for the typical Freeport home.
8. Rock Island - $124,068
Across the Mississippi from Davenport, Iowa, is Rock Island, with a population of over 36,000. The area is home to the Rock Island Armory military base and offers ample employment opportunities, along with affordable housing, a recipe for a high standard of living. The typical monthly cost to buy a home in Rock Island? An estimated $1,072.
9. Peoria - $126,626
Illinois’ eighth-largest city, Peoria, can give you a bigger city feel without the home prices of many larger metros. And there must be something about this place. Zillow shows that home prices were near $81,000 in 2019, rising more than 55% since then. Still, this city offers solid value for homebuyers, with an estimated mortgage payment of $1,094 per month.
10. Jacksonville - $132,883
Situated about 45 minutes west of Springfield, Jacksonville offers affordable housing and employment opportunities with major local employers, including Eli Bridge Company, Reynolds, and Nestlé. The city is also home to Illinois College, with the focus on education earning it the moniker “Athens of the West.” Thinking about buying a home in Jacksonville? Plan for an estimated monthly mortgage payment of just $1,148
Get Pre-Approved for Your Illinois Home
When most people think of Illinois, they think of Chicago, where even starter homes are out of reach for most buyers. But looking a little deeper, we discover extreme value in the state. Owning a home is a fraction of the cost of renting in many areas of the country. See what home price you qualify for by requesting your pre-approval today.
Methodology
To find the 10 most affordable housing markets in Illinois, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for February 2024. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.946%, the average rate published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow’s report.
