Charleston, IL Housing Market

Market Overview

Charleston, IL presents a moderate real estate market, as reflected in its PropertyIQ Score of 54 out of 100. This places the market near the middle of the scoring range, indicating a mix of strengths and limitations rather than a clearly strong or weak environment. The most notable positive driver is the 12-month home value momentum at 10.77%, which suggests that home values have appreciated over the past year. However, the 3-month home value momentum is -2.39%, pointing to recent cooling. A median days on market of 47 days and a 22.2% share of listings with a price cut reinforce that this is a balanced but not overheated market.

Compared with Illinois state averages, Charleston is considerably more affordable in absolute terms. The median home value is $151,832, roughly half the state average of $297,573. The rent index is $781 per month, well below the state average of $1,274. At the same time, the median household income is $56,478 versus $83,390 statewide, and the unemployment rate matches the state average at 4.9%. This means Charleston’s lower housing costs are paired with lower local incomes, so the relative affordability picture is more nuanced than the price gap alone suggests.

Overall, the data positions Charleston as a moderate, affordability-oriented market with recent momentum softening. It does not show the price levels or income base of the broader state, and its short-term indicators suggest some caution for sellers and potential opportunity for value-focused buyers.

Key Trends

One clear trend is affordability relative to income. The median home value of $151,832 is about 51% of the state median, while the median household income of $56,478 is about 68% of the state average. Based on these figures, the local home price-to-income ratio is roughly 2.7, compared with about 3.6 for the state averages. This suggests that, relative to local earnings, housing is more attainable in Charleston than across Illinois as a whole. The rent index of $781 per month equals $9,372 annually; compared with the median home value, that points to a gross rental yield of about 6.2%, which is relatively high.

A second trend is cooling price momentum. The 12-month home value momentum of 10.77% shows meaningful annual appreciation, but the 3-month momentum of -2.39% indicates that prices have pulled back more recently. The data also lists a year-over-year home value change of $3, a very small dollar amount that is difficult to reconcile with the 12-month momentum figure, so that specific metric should be interpreted with caution. The 22.2% share of listings with a price cut supports the idea of softening conditions, as more than one in five listings has reduced its asking price.

A third trend is moderate inventory and market pace. With 65 homes for sale and a median days on market of 47 days, the market is not moving at an extremely fast or extremely slow pace. Without historical inventory data or months of supply, it is hard to call this decisively a buyer’s or seller’s market, but the combination of price cuts and a 47-day median marketing time leans toward buyers having some negotiating room.

A fourth trend is a relatively affordable rental market. The rent index of $781 is far below the state average of $1,274, which may keep rental demand local but also means rental costs are low in absolute terms. For investors, the relationship between rents and home prices suggests potential cash flow, though the recent negative 3-month momentum and price cuts may temper total return expectations.

Who Is This Market For

This market is likely best suited for first-time buyers and budget-conscious households. The median home value of $151,832 and the local price-to-income ratio of about 2.7 make homeownership more attainable than in many parts of Illinois. With a median household income of $56,478, a typical home is within closer reach relative to local earnings than the state average implies. The relatively low rent index of $781 may also make buying a practical alternative for renters who can qualify for a mortgage.

Charleston may also appeal to buy-and-hold investors seeking yield. The rent index of $781 per month relative to the median home value of $151,832 suggests a gross yield around 6.2%, which is higher than what the state-level figures indicate. However, investors should note the -2.39% 3-month home value momentum and the 22.2% share of listings with a price cut, which suggest that short-term appreciation may be limited.

This market is less clearly suited for move-up buyers or those seeking higher-priced properties. The median home value is well below the state average, and with only 65 homes for sale, inventory is limited. Population growth data is not available, so it is difficult to assess whether in-migration will drive demand for larger or higher-priced homes. The unemployment rate matching the state average at 4.9% does provide some stability, but the lower median household income may limit the local move-up buyer pool.

Outlook

The near-term outlook for Charleston is cautious but not distressed. The negative 3-month home value momentum of -2.39% and the 22.2% share of listings with a price cut suggest that prices may continue to flatten or soften in the short run. At the same time, the 12-month momentum of 10.77% shows that the market has posted appreciation over the past year, so the recent cooling follows a period of growth. A median days on market of 47 days and 65 homes for sale indicate a moderate pace rather than a severe slowdown. Affordability relative to the state and the relatively high rental yield may support ongoing interest from first-time buyers and investors. However, with population growth data missing, longer-term demand trends are harder to assess. Overall, the numbers point to a stabilizing or slightly cooling market rather than one with strong near-term acceleration.