The Housing Market in Aurora Today
As of mid-2023, the median rent for a 1-bedroom apartment in Aurora is $1,325 per month, reflecting a 4% year-over-year increase. The local housing market has seen steady demand, with inventory tightening slightly over the past 12 months. New apartment complexes and townhome developments continue to rise, especially in the downtown area and near major employers along the I-88 corridor.
Aurora’s diverse economy and proximity to Chicago help keep the housing market relatively stable. Major industries like healthcare, manufacturing, and education provide a solid employment base. However, rising interest rates and construction costs are putting upward pressure on both rents and home prices.
Renting in Aurora: What’s Typical?
For renters, a mid-range 1-bedroom apartment in Aurora runs about $1,325 per month as of June 2023. Expect to pay closer to $1,650 for a 2-bedroom unit. Newer luxury complexes downtown command higher rents, while older properties further from the city center tend to be more affordable.
Rent typically includes water, sewer, and trash pickup. Renters should budget separately for electricity, gas, internet, and renter’s insurance. Many newer buildings offer on-site fitness centers, co-working spaces, and package lockers as amenities. Popular renter demographics include young professionals, healthcare workers, and small families.
Owning a Home in Aurora
The median home price in Aurora is currently $325,000, up 6% from a year ago. For a typical buyer putting 10% down on a 30-year fixed mortgage at 6.5% APR, that translates to a monthly payment around $2,450 including property taxes and insurance.
Homeowners should also budget for ongoing costs like utilities, maintenance, and HOA dues which can add hundreds per month. Property taxes in Aurora run about 2.5% of assessed value annually. Homeowners insurance costs around $1,200 per year for a typical single-family house.
Renters vs. Homeowners: Who Lives Where?
Aurora’s homeownership rate stands at 65%, slightly above the national average. Older, more established neighborhoods like Stonebridge and Orchard Valley have higher ownership rates. Younger residents and newcomers tend to rent in the downtown area or newer developments on the east side.
While owning is often cheaper than renting on a monthly basis, the upfront costs and credit requirements create barriers for many. Saving for a down payment is especially challenging for young professionals burdened with student loan debt. Cultural factors and family size also play a role in ownership rates among Aurora’s diverse population.
Table: Typical Monthly Housing Costs in Aurora
Here’s what housing costs might look like each month in Aurora:
| Cost | 1BR Apartment | 2BR Apartment | Median House |
|---|---|---|---|
| Rent/Mortgage | $1,325 | $1,650 | $2,050 |
| Property Tax | $0 | $0 | $675 |
| Insurance | $15 | $18 | $100 |
| Utilities | $120 | $150 | $280 |
| HOA | $0 | $0 | $50 |
| Total | $1,460 | $1,818 | $3,155 |
Estimates reflect mid-range properties and average usage.
What’s Driving Costs Up or Down?
Several factors influence housing affordability in Aurora. On the supply side, a shortage of entry-level homes and rising construction costs are putting upward pressure on prices. Strict zoning regulations and high land costs make it difficult to build cheaper housing. Meanwhile, demand remains strong thanks to Aurora’s growing population and healthy job market.
Historically low interest rates in 2020-2021 accelerated home price growth. As the Fed hikes rates to combat inflation, borrowing costs are rising and starting to soften demand. However, the impact is uneven, with some buyers getting priced out while others simply adjust their budgets. Rents are somewhat less sensitive to interest rates but still trending up due to tight supply.
FAQs About Housing in Aurora
- Is Aurora affordable to live in? Compared to Chicago, Aurora offers lower housing costs and a more suburban lifestyle. However, it’s getting more expensive, with rents and home prices outpacing wage growth in recent years.
- Why are housing prices changing? A mix of economic factors like job growth, migration trends, interest rates, and construction costs are driving up prices. Local zoning and housing policies also play a role.
- How does Aurora compare to nearby cities? Housing costs in Aurora are lower than in Naperville but higher than in Joliet or Elgin. Aurora offers a balance of affordability and amenities that appeals to many renters and buyers.
Making Smart Housing Decisions in Aurora
Whether renting or buying, housing is likely to be your biggest monthly expense in Aurora. Be sure to budget accordingly using a realistic estimate of all costs, not just rent or mortgage. Factor in your transportation costs and commute time as well. Use these monthly budget examples for Aurora residents to get a clearer picture.
Renters can save by looking for older units, living with roommates, or committing to a longer lease. Check what utilities are included and aim to keep total rent below 30% of your income. Buyers should shop around for the best mortgage rates and factor in long-term costs like maintenance and repairs. Learn more about the overall cost of living in Aurora to see how housing fits into the bigger picture.