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Average Home Values and Ownership in Zip Code 60046: Lake Villa's Housing Market Dynamics
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 60046, located in Lake Villa, Illinois, is a suburban area with a mix of residential and natural landscapes. Over the past decade, this area has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 60046 has shown a slight downward trend since 2013. In 2013, the area boasted a high 86% homeownership rate, which gradually decreased to 82% by 2022. This decline coincided with a steady increase in average home prices. In 2013, the average home price was $175,435, which rose to $286,867 by 2022, representing a substantial 63.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 85-86%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates declined slightly to 82-83%. This trend suggests that higher interest rates may have made home purchases less affordable for some residents.
The percentage of renters in zip code 60046 has increased from 13% in 2013 to 18% in 2022. This rise in renters corresponds with an increase in average rent prices. In 2013, the average rent was $1,483, which grew to $1,614 by 2022, an 8.8% increase. The population has remained relatively stable during this period, fluctuating between 36,000 and 37,000 residents, indicating that the shift towards renting is likely due to economic factors rather than significant population changes.
As of 2024, the average home price in zip code 60046 has reached $313,117, continuing the upward trend observed in previous years. This represents a 9.2% increase from the 2022 average price of $286,867. The current federal interest rate stands at 5.33%, significantly higher than the rates seen in the past decade. This elevated interest rate may impact home affordability and potentially influence future homeownership rates in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 60046 will likely continue to rise over the next five years, potentially reaching around $350,000-$375,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,800-$1,900 per month in the same timeframe. However, these projections assume relatively stable economic conditions and no major market disruptions.
In summary, zip code 60046 has experienced a gradual shift from homeownership to renting over the past decade, alongside significant increases in both home prices and rent. The area maintains a high homeownership rate despite these changes, but the rising costs of housing and higher interest rates may continue to influence this balance in the coming years. The consistent population and steady price growth suggest a stable and desirable housing market in this suburban Illinois community.
