Waukegan, IL
⚖️ Balanced Market📊 Fundamental Scores
🎯 The Bottom Line
The Waukegan housing market offers a rare value proposition with a price-to-rent ratio below the national average. Investors and first-time buyers find an accessible entry point in this balanced market.
📈 Price History
📊 Market Activity
📈 Market Analysis
Market Cycle
The current Waukegan housing market is defined by equilibrium. With an Ocity Market Temperature score of 50, neither buyers nor sellers hold a decisive advantage. This stability creates a predictable environment for institutional capital and individual buyers alike, avoiding the volatility seen in overheated markets.
Supply & Demand
Supply dynamics favor a slight seller's edge. The 2.9 months of supply sits just below the threshold for a balanced market, indicating that inventory moves relatively quickly. This is evidenced by the fact that 37.5% of homes go off-market within two weeks. However, with 42 new listings monthly versus 32 homes sold, the market is not overheating. The 16.1% of listings with price drops suggest that sellers must price realistically to attract buyers in this environment.
Pricing Power
Pricing power has normalized. The sale-to-list ratio of 96.1% indicates that buyers are successfully negotiating slightly below asking price. The median days on market stands at 35 days, providing ample time for due diligence. Crucially, the 0.0% YoY price change signals a plateau, offering a stable entry point without the risk of immediate depreciation or speculative bubbles.
Waukegan, IL Housing Market Forecast 2026–2028
🔮 Waukegan Price Forecast 2026–2028
Waukegan, IL Housing Market Forecast 2026–2028
For those evaluating the Waukegan housing market forecast through 2028, the data suggests a period of consolidation rather than explosive growth. After a remarkable 50.7% surge over the past five years, the market is catching its breath, with the median home price currently at $248,000 and a flat year-over-year price change of 0.0%. This cooling is a natural correction, especially considering the 5-year compound annual growth rate (CAGR) of 8.4%. While the 35 days on market indicates properties are still moving, the overall market temperature sits at a balanced 50/100, signaling a shift away from the frenetic seller's market of the recent past. The primary question for potential buyers—will Waukegan home prices drop?—seems poised for a "no" answer, but rather a period of stabilization.
A key metric supporting this stability is the price-to-rent ratio of 16.8x, which sits below the national average of 18x. This suggests that despite the significant 5-year price appreciation, Waukegan real estate in Waukegan 2027 may still offer relative value compared to renting, especially given the current median rent of $1,231/mo. Local factors will be crucial; Waukegan's proximity to major employment hubs in Lake County and Chicago, combined with ongoing lakefront development, could provide a floor for prices. However, broader economic headwinds, such as interest rates and affordability challenges, will likely temper appreciation. The risk grade of C reflects a market that has appreciated quickly and may carry some vulnerability to economic shifts.
Looking ahead to 2026-2028, a balanced assessment is warranted. The "NEUTRAL" buy/rent verdict accurately captures the current sentiment—this is not a market for speculative flips, but rather for long-term homeownership and steady investment. The rapid appreciation of the past five years is unlikely to repeat; instead, expect modest single-digit growth as the market digests recent gains. For Waukegan real estate in Waukegan 2027, the focus will likely shift to fundamentals: job growth in the local area, the health of the manufacturing and logistics sectors, and the desirability of its lakefront location. While not poised for a dramatic downturn, the era of double-digit annual gains appears to be over, making it a market for patient capital rather than quick returns.
Disclaimer: This forecast is a statistical projection based on historical price trends and should not be considered financial advice. Actual market outcomes may vary due to economic conditions, interest rates, local regulations, and other factors.
🏠 Rent vs Buy Analysis
Monthly Cost Breakdown
Comparing the cost of living reveals a strong case for ownership. The median home price of $248,000 translates to a mortgage payment significantly higher than the $1,231/month median rent. However, the 16.8x price-to-rent ratio is more favorable than the national average of 18x. This suggests that while renting is cheaper monthly, buying builds equity more efficiently relative to the asset cost.
5-Year Comparison
Over a 5-year horizon, the math shifts. Assuming a standard down payment and 3% annual appreciation, a buyer builds substantial equity, whereas a renter faces cumulative payments with no return. The Waukegan real estate market offers a unique arbitrage opportunity where the cost of renting is low, but the barrier to entry for buying remains accessible.
When Renting Wins
- Flexibility is paramount; short-term stays (under 3 years) favor renting due to transaction costs.
- Zero maintenance responsibility; landlords cover repairs and capex.
- Preserving liquidity; avoiding a down payment keeps cash available for other investments.
When Buying Wins
- Long-term wealth accumulation; equity paydown and appreciation.
- Fixed monthly costs; protection against rising rental rates in the buy vs rent Waukegan landscape.
- Tax benefits; mortgage interest and property tax deductions.
🧮 Can You Afford Waukegan? Interactive Calculator
Income Reality Check
Can you actually afford Waukegan?
Great! At 27.0%, this mortgage falls within healthy financial limits. You have strong purchasing power in Waukegan.
💰 Investment Thesis
Cash Flow Analysis
For investors looking to invest in Waukegan, the numbers support a cash-flow strategy. With a median price of $248,000 and median rent of $1,231, the gross rental yield is approximately 6%. After accounting for taxes, insurance, and maintenance (excluding mortgage), the cap rate hovers around 4.5% to 5%. While not explosive, this provides a stable, inflation-hedged income stream.
House Hacking
The Waukegan housing market is prime for house hacking. A buyer purchasing a duplex or a single-family home with an accessory dwelling unit (ADU) potential can significantly offset housing costs. By living in one unit and renting the other, an investor can effectively reduce their personal housing expense to near zero, leveraging the 16.8x P/R ratio to their advantage.
Target Investor
The ideal investor for Waukegan real estate is a yield-focused individual or entity seeking stability over speculation. With a Risk Grade of C and a Neutral verdict, this market suits those with a 5-10 year horizon. The Investor Yield score of 50 indicates moderate returns, ideal for a diversified portfolio rather than a high-risk flip.
🏘️ House Hacking Calculator Interactive Calculator
House Hacking CalculatorOwner-Occupied Multi-Fam
🗺️ Neighborhood Breakdown
Entry-Level
Neighborhoods like the Westside and areas near the Waukegan National Golf Course offer entry-level opportunities. Here, Waukegan home prices dip below the median, often featuring older housing stock that is ripe for renovation. Investors can find properties in the $150,000 - $200,000 range, offering higher cap rates but potentially higher maintenance costs.
Mid-Range
The central corridor and areas surrounding downtown Waukegan represent the mid-range segment. These Waukegan neighborhoods offer a mix of historic homes and updated ranches. Prices align closely with the $248,000 median. This segment attracts first-time homebuyers and stable rental tenants, ensuring low vacancy rates.
Premium
Premium segments are found in the northern sections near the lakefront and the Illinois-Wisconsin border. These Waukegan neighborhoods command higher prices, often exceeding $350,000. While the entry price is higher, the appreciation potential is tied to the lakefront desirability. This area appeals to professionals commuting to Chicago or Milwaukee, supporting strong rental demand.