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Average Home Values and Ownership in Zip Code 60005: A Decade of Change in Arlington Heights
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 60005, encompassing Arlington Heights in Illinois, has experienced significant changes in homeownership rates and housing prices over the past decade. This suburban community, known for its vibrant downtown area and excellent schools, reflects broader economic trends and local market dynamics in its housing landscape.
The ownership percentage in zip code 60005 has declined from 68% in 2013 to 62% in 2022. During this same period, average home prices have shown substantial growth, increasing from $231,776 in 2013 to $346,165 in 2022, representing a 49.4% rise over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 60005. From 2013 to 2016, historically low interest rates ranging from 0.11% to 0.4% coincided with relatively stable homeownership rates around 65-67%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates decreased, dropping to 64% by 2020. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 60005 has increased from 32% in 2013 to 38% in 2022, mirroring the decline in homeownership. Concurrently, average rent prices have shown a steady upward trend, rising from $1,335 in 2013 to $1,612 in 2022, marking a 20.7% increase. This trend suggests that as homeownership became less accessible due to rising home prices, more residents turned to renting, driving up demand and subsequently, rent prices. The population in the zip code has remained relatively stable, fluctuating between 30,939 and 32,243 over the past decade, indicating that changes in housing trends are primarily driven by economic factors rather than significant population shifts.
In 2023, the average home price in zip code 60005 reached $362,076, with federal interest rates at 5.02%. The upward trend continued into 2024, with average home prices climbing to $384,549 and interest rates further increasing to 5.33%. These figures represent a substantial 11.1% increase in average home prices from 2022 to 2024, despite the significant rise in interest rates, which typically would be expected to cool the housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60005 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $450,000 to $475,000. For rent prices, the forecast suggests a continued upward trajectory, potentially reaching an average of $1,800 to $1,900 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 60005 has experienced a clear trend of decreasing homeownership rates coupled with rising average home and rent prices over the past decade. The interplay between federal interest rates, housing affordability, and the shift towards renting has significantly shaped the local real estate landscape. As property values continue to appreciate and interest rates remain elevated, we can expect these trends to persist, potentially leading to further changes in the community's housing dynamics in the coming years.
