Marion, IL Housing Market

Market Overview

Marion-Herrin has a PropertyIQ Score of 43 out of 100, positioning it as a moderate-to-weak market compared with broader benchmarks. The median home value is $212,500, well below the state average of $297,573, and the rent index is $897, also below the state average of $1,227. These figures point to a relatively affordable housing market, though they also reflect a lower-cost local economy. The unemployment rate matches the state average at 4.9%, while median household income of $65,521 trails the state average of $81,702 by roughly $16,000.

The score’s top drivers are median days on market at 61 days and the share of listings with a price cut at 22.4%. While these are the strongest contributors to the score, the overall reading remains below the midpoint. There are 231 homes for sale, and the year-over-year home value change is -$3, essentially flat. Population growth data is not available, leaving a demand-side signal missing. On balance, this is a market with affordability strengths but limited momentum.

Key Trends

First, affordability relative to the state stands out: median home values are about 28.5% below the state average, and the rent index is about 26.9% below the state average. This creates a cost advantage for buyers from higher-priced areas, though local incomes are also lower.

Second, home values are essentially flat. The year-over-year change is -$3, negligible relative to the $212,500 median home value. That lack of appreciation is reinforced by 22.4% of listings with a price cut, showing sellers are adjusting expectations rather than pushing prices upward.

Third, the sales pace appears moderate. The median days on market is 61 days—one of the top score drivers—meaning homes are taking roughly two months to go under contract. With 231 homes for sale, inventory suggests buyer choice without signaling a severe supply glut.

Fourth, local incomes and rents are aligned at a lower level. Median household income of $65,521 is below the state average of $81,702, and the rent index of $897 is below the state average of $1,227. This suggests housing costs are lower partly because local earning power is lower.

Who Is This Market For

This market is likely most suitable for first-time buyers and households seeking lower purchase prices. With a median home value of $212,500—well below the state average—and median household income of $65,521, entry-level buyers may find more room to qualify than in higher-priced parts of Illinois. The 61-day median time on market and 22.4% share of listings with price cuts also suggest buyers may have negotiation leverage.

Buy-and-hold investors may find the numbers workable, though the profile is more cash-flow-oriented than appreciation-oriented. The rent index of $897 implies annualized gross income of about $10,764. Against the median home value of $212,500, that is a gross yield of roughly 5.1% before expenses, slightly above the state-level calculation of about 4.9%. However, the flat year-over-year home value change and PropertyIQ Score of 43 out of 100 suggest limited near-term appreciation potential.

Move-up buyers face a mixed picture. Flat home values of -$3 year-over-year mean existing owners may not build equity quickly, but lower prices on larger homes could still make a trade-up more affordable than in pricier markets.

Outlook

The near-term outlook is for continued flat-to-soft conditions rather than rapid appreciation. Home values are essentially unchanged year over year at -$3, and the 22.4% share of listings with a price cut shows sellers are competing on price. With a 61-day median time on market and 231 homes for sale, buyers are likely to retain time and negotiating power. Unemployment matches the state average at 4.9%, supporting a stable employment base, but median household income of $65,521 remains below the state average, which may cap local purchasing power. Population growth data is unavailable, so longer-term demand cannot be confirmed from these figures. Unless inventory tightens or local incomes rise, Marion-Herrin appears likely to remain an affordability-oriented market with limited upward pricing pressure.