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Average Home Values and Ownership in Zip Code 60118: West Dundee's Changing Housing Market
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
West Dundee, located in zip code 60118 in Illinois, has experienced significant changes in its housing market over the past decade. This area, spanning 23.38 square miles, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 60118 has shown a gradual decline from 80% in 2013 to 76% in 2022. During this same period, average home prices have demonstrated a consistent upward trend. In 2013, the average home price was $210,689, which increased to $340,435 by 2022, representing a substantial 61.6% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2015, interest rates remained extremely low, hovering around 0.1%. During this period, homeownership rates in zip code 60118 remained stable at 78%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options, while higher rates can make mortgages less attainable for potential buyers.
The percentage of renters in zip code 60118 has increased from 19% in 2013 to 24% in 2022, corresponding with the decline in homeownership. Interestingly, average rent prices have also shown a significant upward trend during this period. In 2013, the average rent was $1,111, which rose to $1,456 by 2022, marking a 31.1% increase. This simultaneous rise in both renter percentages and average rent prices could be attributed to increased demand for rental properties, possibly driven by those priced out of the homeownership market.
Looking at the most recent data, average home prices in zip code 60118 continued to rise, reaching $357,721 in 2023 and $374,035 in 2024. This represents a further 9.9% increase from 2022 to 2024. Notably, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60118 will continue to rise, albeit potentially at a slower rate due to higher interest rates. By 2029, average home prices could reach approximately $450,000 to $500,000, assuming a conservative annual growth rate of 4-6%. Average rent prices are also expected to increase, potentially reaching $1,700 to $1,900 per month by 2029, based on historical trends and anticipated market conditions.
In summary, zip code 60118 has experienced a gradual shift towards a higher percentage of renters, coupled with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing costs highlights the complex dynamics of the local real estate market. As the area continues to evolve, these trends will likely shape the future of housing accessibility and affordability in West Dundee.
