Renter percentages in zip code 60120 have shown an inverse relationship to homeownership rates, increasing from 25% in 2013 to 31% in 2022. This trend coincided with a rise in average rent prices. In 2013, the average rent was $1,277, which increased to $1,333 by 2022, representing a 4.4% increase. The population in this zip code remained relatively stable during this period, fluctuating between approximately 56,000 and 58,000 residents, suggesting that the increase in renter percentages was not primarily driven by population growth but rather by shifts in housing preferences or affordability.

In 2023 and 2024, the housing market in zip code 60120 continued to evolve. The average home price reached $250,616 in 2023 and further increased to $268,195 in 2024, marking a 7% year-over-year growth. This price appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, potentially affecting affordability for prospective homebuyers.

Looking ahead, predictive models suggest that average home prices in zip code 60120 may continue to rise over the next five years, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed since 2012. Average rent prices are also expected to increase, possibly surpassing $1,500 per month within the same timeframe, following the gradual upward trajectory seen in recent years.

In summary, zip code 60120 has experienced a notable shift towards renting, with homeownership rates declining despite periods of low interest rates. The area has seen substantial appreciation in average home values, particularly since 2012. Rent prices have also increased, albeit at a slower pace. These trends, coupled with recent interest rate hikes, suggest a changing landscape for housing in this Elgin zip code, with potential implications for affordability and housing choices for residents in the coming years.