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Average Home Values and Ownership in Zip Code 60016: A Decade of Resilience in Des Plaines, Illinois
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 60016, located in Des Plaines, Illinois, is a diverse suburban area covering 10.13 square miles. This zip code has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 60016 has shown a slight decline over the years, dropping from 72% in 2013 to 69% in 2022. This trend coincides with changes in average home prices, which have seen significant growth. In 2013, the average home price was $147,433, and it steadily increased to $261,566 by 2022, representing a 77.4% increase over this period. The most substantial year-over-year growth occurred between 2013 and 2014, with a 15.6% increase in average home prices.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 60016. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in average home prices. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we observed a slight decrease in the homeownership rate from 67% to 66%. This trend aligns with the general principle that higher interest rates can make homeownership less affordable for some buyers.
The renter population in zip code 60016 has shown a gradual increase, rising from 27% in 2013 to 31% in 2022. This trend corresponds with the rise in average rent prices, which increased from $1,138 in 2013 to $1,332 in 2022, a 17% increase over the period. The most significant year-over-year increase in average rent occurred between 2020 and 2021, jumping from $1,330 to $1,388, a 4.4% rise. This increase in rental demand and prices could be attributed to factors such as population growth, with the area's population increasing from 57,556 in 2013 to 57,198 in 2022, and potential shifts in housing preferences.
Looking at more recent data, the average home price in zip code 60016 continued to rise, reaching $274,099 in 2023 and $290,679 in 2024. This represents a 4.8% increase from 2022 to 2023 and a further 6.0% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60016 will continue to rise, potentially reaching around $340,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. For average rent prices, we predict a more moderate increase, potentially reaching approximately $1,500 by 2029, reflecting the ongoing demand for rental properties in the area.
In summary, zip code 60016 has experienced a gradual shift towards a higher proportion of renters, coupled with significant increases in both average home prices and rent. The interplay between federal interest rates, local population dynamics, and broader economic factors has shaped these trends. As the area continues to evolve, it will be essential to monitor how these factors influence housing affordability and homeownership rates in the coming years.
