Peoria Home Builders Still Dovish on New Construction

Nov 25, 2019

Demand for new homes in the Peoria metropolitan area remains sluggish. 

That's according to Bradley University's 3rd Quarter Business and Economic Indicators report. Single-family building permits are down 44 percent from this time last year - and still far below new construction rates in the report's baseline year (2010). 

Dr. Bernard Goitein is Bradley's professor of management and leadership.

"Builders are still very cautious with residential building plans. So there seems to be a sufficient supply of homes on the market for people to be buying, and not a real push to add more," he said. 

Nationally, Goitein says people are staying in their current homes longer. He said this is reducing the demand for new home construction.

Overall, fewer homes are on the market than last year, and of those that are selling, they're going for lower prices. Recently-released numbers from Illinois REALTORS show that while the median Peoria home is selling for about 10 percent more than last October, they're selling for 2 percent less than in September. Closed sales are also down slightly. 

Bradley's quarterly reports looks at more than 30 indicators in Peoria, Tazewell, Woodford, Marshall, and Stark counties.