Dixon, IL Housing Market
AI-powered market intelligence for the Dixon, IL metro area.
PropertyIQ Scores
Dixon, IL Market Analysis
Market Overview
Dixon, IL scores 94 out of 100 on the PropertyIQ Score, placing it among strong housing markets. The score is driven by four top factors: 12-month home value momentum of 13.30%, 3-month home value momentum of 1.97%, a median days on market of 46 days, and a share of listings with a price cut of 20.6%. These metrics point to steady buyer interest and a competitive but not overheated market. With 65 homes for sale, Dixon is a small market, but the pace of sales is relatively efficient.
Compared with state benchmarks, Dixon is more affordable. The median home value is $189,262, well below the Illinois average of $297,573. The rent index is $1,031, compared with $1,274 statewide. Median household income is $70,292, below the state average of $83,390, but the gap in home values is larger than the income gap, meaning housing costs are relatively lower for local residents. The unemployment rate is 4.9%, equal to the state average.
One notable data point is the home value year-over-year change of -$5, which is essentially flat. Population growth data is not available, so the numbers cannot show demographic momentum. Still, the overall score and drivers indicate a strong market with an affordability advantage.
Key Trends
The first trend is strong home value momentum in the measured periods. The 12-month momentum of 13.30% and 3-month momentum of 1.97% are top contributors to the PropertyIQ Score. However, the year-over-year home value change is -$5, essentially flat. This suggests recent momentum has not yet produced a meaningful annual dollar gain.
A second trend is limited inventory and a relatively fast market. Dixon has 65 homes for sale, and the median days on market is 46 days. That is a fairly quick pace and suggests well-priced homes attract buyers. The share of listings with a price cut is 20.6%, meaning about one in five listings has reduced its asking price. This points to moderate seller flexibility without signaling widespread price weakness.
A third trend is affordability compared with the rest of Illinois. The median home value of $189,262 is roughly 36% below the state average of $297,573. The rent index of $1,031 is about 19% below the state average of $1,274. While median household income is also lower than the state average, the housing cost advantage is larger than the income gap, which can support local demand.
A fourth trend is labor market stability. Dixon’s unemployment rate is 4.9%, matching the Illinois average. This indicates the local employment picture is not a relative disadvantage. Population growth is not available, so it is not possible to identify a demographic growth trend from the provided data.
Who Is This Market For
Dixon is well suited to first-time buyers and budget-conscious households. The median home value of $189,262 is about 2.7 times the median household income of $70,292, while the Illinois state figures imply a ratio of about 3.6. That makes Dixon’s entry point more accessible for buyers who want lower purchase prices and smaller mortgage amounts.
The market also appeals to rental property investors. The rent index of $1,031 translates to about $12,372 in annual rent. Against the median home value of $189,262, that implies a gross rental yield of roughly 6.5% before expenses, which is a potentially attractive starting point. The strong PropertyIQ Score, 46-day median time on market, and 20.6% price cut share suggest an active market with some room for negotiation.
Move-up buyers may find opportunities because home values are below the state benchmark, but the small inventory of 65 homes for sale could limit choices. The 46-day median days on market means buyers should be ready to move quickly on well-priced listings. Those seeking luxury or high-price properties may find fewer options based on the median value.
Outlook
The data supports a cautiously positive near-term outlook for Dixon. The PropertyIQ Score of 94, 12-month momentum of 13.30%, and 3-month momentum of 1.97% point to continued buyer interest. A median days on market of 46 days and a 20.6% price cut share suggest the market is not oversupplied, even with 65 homes for sale. Affordability relative to Illinois benchmarks may keep demand steady, particularly if buyers are priced out of higher-cost areas. However, the year-over-year home value change of -$5 is essentially flat, and population growth data is unavailable. The most supported expectation is stable activity and competitive conditions for well-priced homes, grounded in momentum and relative affordability rather than rapid long-term price appreciation.
AI-generated analysis based on current market data. Last updated October 5, 2026.
Get Dixon, IL market updates
Choose your role for tailored insights.
Dixon, IL market data
Dixon, IL Housing Market Overview
Dixon, IL's median home value is $189K, up 13.3% over the past year. Homes here sell in a median 46 days. Its PropertyIQ Score of 94 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
Whether you're considering buying a home, investing in rental property, or weighing entry timing in the Dixon, IL area, the PropertyIQ Score gives you a single, data-first read on relative market strength. It is validated against actual market outcomes from 2001 to 2023, with a positive score-to-return relationship in every validated year across IL and every other US state.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Dixon, IL's PropertyIQ Score of 94 ranks among the Midwest's stronger demand signals.
The PropertyIQ Score for the Dixon, IL market is built from four inputs: Zillow home-value momentum over twelve months, Zillow home-value momentum over three months, the median days listings spend on the market (Realtor.com), and the share of listings with a price cut (Realtor.com). The score runs on a 1 to 99 scale computed across all metro markets nationally and calibrated so 50 equals the state average — a score above 50 means this market is positioned to outperform its state, and a score below 50 means it is set to lag. Momentum here has been positive, with home values up 13.3% over the past year.
View Dixon, IL's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
Counties in the Dixon, IL metro area
Top markets in IL
Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Dixon, IL a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Dixon, IL currently scores 94, a very strong-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $189K, up 13.3% over the past year. So whether Dixon, IL is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Dixon, IL?
Dixon, IL's PropertyIQ Score is 94, indicating very strong momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 94 places Dixon, IL above its state benchmark.
Are home prices in Dixon, IL rising or falling?
Home prices in Dixon, IL are rising. Over the past year, the median home value increased 13.3%, reaching $189K. Over the latest three months, values moved up 2.0%, a sign near-term demand remains firm. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Dixon, IL's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Dixon, IL?
In Dixon, IL, homes sell in a median of 46 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 21% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Dixon, IL market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.