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Average Home Values and Ownership in Chicago's 60657 Zip Code: A Decade of Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 60657, located in Chicago, Illinois, is a vibrant urban area known for its diverse population and dynamic real estate market. Over the past decade, this neighborhood has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market conditions.
The ownership percentage in zip code 60657 has shown a gradual increase from 37% in 2013 to 40% in 2019, before slightly declining to 38% in 2022. This trend coincides with fluctuations in average home prices. In 2013, the average home price was $345,712, which rose steadily to peak at $413,999 in 2018. After a brief dip to $400,171 in 2020, prices rebounded to $425,265 by 2022. This overall upward trend in home prices, despite minor fluctuations, suggests a growing demand for homeownership in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 60657. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, the homeownership rate remained stable at 37%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed an increase in homeownership to 40%, possibly due to buyers rushing to purchase before rates climbed further. The subsequent drop in interest rates to 0.08% in 2021 coincided with a slight decrease in homeownership to 39%, potentially reflecting economic uncertainties during the pandemic.
Renter percentages in zip code 60657 have shown a complementary trend to homeownership, decreasing from 63% in 2013 to 60% in 2019, before rising slightly to 62% in 2022. Average rent prices have consistently increased during this period, from $1,485 in 2013 to $1,703 in 2022, representing a 14.7% increase over nine years. This rise in rent prices occurred despite fluctuations in the renter population, suggesting strong demand for rental properties in the area. The population in the zip code grew from 70,405 in 2013 to 73,870 in 2022, which likely contributed to the upward pressure on rent prices.
In 2023, the average home price in zip code 60657 slightly decreased to $424,980, while federal interest rates rose significantly to 5.02%. Moving into 2024, we see a rebound in average home prices to $438,700, with interest rates further increasing to 5.33%. This data suggests resilience in the local housing market despite higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate a continued moderate increase in average home prices, potentially reaching around $470,000 by 2029. Rent prices are expected to follow a similar upward trajectory, potentially surpassing $2,000 per month on average. These projections assume stable economic conditions and continued demand for housing in the area.
In summary, zip code 60657 has demonstrated a relatively stable housing market with a slight trend towards increased homeownership over the past decade. The area has shown resilience in both home values and rent prices, even in the face of economic fluctuations and changing interest rates. The ongoing population growth and the desirability of the neighborhood suggest that both ownership and rental markets will likely remain strong in the coming years, with moderate but steady increases in both home values and rent prices.
