Peoria, IL Real Estate Market 2026: Score 84, $165K Median, 13.9% YOY Appreciation

Peoria, Illinois scores 84 out of 100 on the PropertyIQ index as of February 2026.

That score places the Peoria metro among the top-performing markets in Illinois and among the highest-rated mid-sized Midwest metros in the national dataset. The median listing price is $165,000. Year-over-year appreciation is 13.87%. The demand score is 90.3 out of 100. A household earning the metro median needs just $43,856 per year to qualify for the median-priced home.

PropertyIQ scores Peoria an 84 out of 100 as of February 28, 2026. Scores are updated monthly using Zillow, Census, and Realtor.com data.

What a Score of 84 Looks Like in Peoria

The demand score of 90.3 is the standout metric in Peoria's data profile. Demand scores in the 90s indicate that buyer activity is absorbing available supply at a level that ranks in the top decile of all markets in the dataset. A demand score at this level means the market is not relying on favorable supply conditions or distorted financing to appear strong. Buyers are genuinely present, submitting contracts, and closing.

The pending ratio confirms it: 0.7417 as of February 1, 2026. For every 100 homes listed in Peoria, 74 are already under contract. That reading indicates a competitive market where well-priced listings move reliably. In markets where the pending ratio drops below 0.40, sellers are waiting. In Peoria at 0.74, the supply-demand balance is clearly in sellers' favor.

The hotness score is 73.9. The supply score is 57.5. Both components are above the midpoint, confirming that no single weak element is masking underlying problems. The 84 composite is a broadly healthy reading.

Peoria Illinois Housing Market: Price and Appreciation Data

The median listing price in Peoria is $165,000 as of February 1, 2026. The Zillow home value for the metro is $162,562 as of January 31, 2026. The close alignment between listing price and Zillow value indicates a market where pricing is accurate and not inflated by aspirational listings sitting unsold.

Year-over-year appreciation is 13.87% as of February 2026. Month-over-month is 3.19%. The five-year appreciation rate is 58.12% as of February 2026. That five-year number is one of the stronger appreciation readings in the Midwest dataset, produced by a market that entered the post-2020 period deeply undervalued and has been steadily closing that gap.

The Zillow one-year price forecast is 3.9% as of December 2025. At a time when national forecasts cluster around 2% to 3%, a 3.9% forward expectation for a market already showing 13.87% trailing appreciation is a meaningful signal. The model does not expect the acceleration to fully reverse.

The sale-to-list ratio is 99.02% as of November 2025. Sellers are receiving essentially their full asking price. Buyers are not extracting meaningful discounts. At $165,000 median with 99% sale-to-list, the market is clearing at stated prices.

New listings increased 31.2% year over year as of February 2026. Rising new supply in a market this strong typically indicates seller confidence, not market deterioration. More homeowners believe now is the right time to list, which provides buyers with more selection without meaningfully softening prices.

Peoria Real Estate Market: Affordability and Income Analysis

The income required to buy at the median listing price is $43,856 per year as of February 2026. The Peoria metro median household income is $70,872 as of 2023 Census data.

The income-to-buy ratio is 0.62. A household earning the metro median earns 38% more than required to comfortably purchase the median-priced home. This is a genuinely affordable market, not affordable relative only to coastal metros, but affordable in absolute terms by any standard income-to-housing-cost measure.

The overvaluation calculation shows Peoria at negative 34.9% as of February 2026. That number means Peoria homes are priced 34.9% below what income-adjusted models suggest the market can support. The affordable home price based on local income is $266,640 as of February 2026. The actual Zillow home value is $162,562. The gap of $104,000 between what incomes can support and what homes cost represents significant price runway without any income growth.

Homes like this do not stay permanently mispriced. The 58.12% five-year appreciation reflects the market beginning to close this gap, and the current 13.87% trailing rate suggests the process is continuing.

The unemployment rate is 4.8% as of November 2025. The homeownership rate is 72.86% as of 2023 Census data. The median age is 40 years. These demographics describe an established, working-age population with stable employment rather than a speculative demand base.

Peoria IL Rent Data and Cash Flow Metrics

The Zillow rent index for Peoria is $1,132 per month as of December 2025. At a Zillow home value of $162,562, the gross rent multiplier is approximately 12.0.

A GRM of 12 places Peoria in a category that most cash flow investors actively seek. Many Midwest markets with strong fundamentals carry GRMs in the 11 to 14 range. At 12, the rent-to-price ratio leaves meaningful room for positive cash flow after financing costs, vacancy, and maintenance, depending on acquisition price and financing terms.

The combination of a 12.0 GRM with 13.87% trailing appreciation is an unusual market profile. Most high-appreciation markets see their GRMs expand as prices outpace rents. Peoria's appreciation is large in percentage terms, but the absolute price base is low enough that rents have kept pace.

Why Peoria Scores 84 in a State Where Most Markets Score Lower

Illinois markets generally score in mixed territory. The state carries legacy fiscal pressures, pension obligations, and population outflow from Chicago that depress scores across much of the Midwest. Peoria outperforms the state average because its fundamentals are stronger than the headline Illinois narrative suggests.

The Caterpillar headquarters presence in Peoria, combined with a broader manufacturing and healthcare employment base, provides income diversity that many comparable-sized Midwest cities lack. The University of Illinois College of Medicine campus adds an educational and healthcare employment anchor that stabilizes long-term demand.

The price base of $165,000 also means the market starts from a position where overvaluation is structurally difficult. A market needs to price significantly above income benchmarks before overvaluation becomes a drag on the score. Peoria is pricing 34.9% below those benchmarks, leaving a wide structural buffer.

The Pending Ratio Signal for Spring 2026

The pending ratio of 0.74 in February is a winter reading. Winter suppresses buyer activity in Midwest markets, where cold weather and school-year considerations push transactions toward spring. A pending ratio of 0.74 in February typically translates to an even more competitive market in April, May, and June when buyer volume increases.

For buyers evaluating Peoria, the spring window matters. A market with a 74% pending ratio in a slow month does not get easier to navigate as the season turns. With new listings up 31% year over year, there will be more selection, but more buyers competing simultaneously.

Investors looking at Midwest markets often focus on Detroit at $181,000, Grand Rapids at 93/100, or Toledo at 86/100. Peoria at 84 with a 90.3 demand score and a GRM of 12 belongs in that comparison set.

The 5-year appreciation of 58.12% is not an accident. It is the result of a market with sound economic anchors, genuine housing affordability, and a buyer pool large enough to absorb supply consistently. The score of 84 reflects a market that has earned it.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Zillow home value data as of January 31, 2026. Sale-to-list data as of November 30, 2025. Forecast data as of December 2025. Census data as of 2023. Economic data as of November 2025. All data for informational purposes only.