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Average Home Values and Ownership in Zip Code 60527: A Decade of Growth in Burr Ridge
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 60527, located in Burr Ridge, Illinois, has experienced dynamic shifts in homeownership rates and property values over the past decade. This affluent suburban area has seen a general trend of increasing homeownership and rising average home prices, with some fluctuations in average rent prices.
The ownership percentage in zip code 60527 has shown a steady increase from 74% in 2013 to 77% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $320,215, which increased to $431,971 by 2022, representing a 34.9% increase over nine years. This correlation suggests that as property values appreciated, more residents were motivated to invest in homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 60527. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership remained stable at 74%, likely due to favorable borrowing conditions. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership actually increased from 76% to 79%, possibly indicating a rush to purchase homes before rates climbed further.
Renter percentages in zip code 60527 have inversely mirrored the homeownership trends, decreasing from 25% in 2013 to 23% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $1,465, which peaked at $1,799 in 2021 before decreasing to $1,624 in 2022. This fluctuation in rent prices, coupled with the overall increase in property values, may have influenced some renters to transition to homeownership.
In 2023 and 2024, we've seen continued growth in average home prices in zip code 60527. The average home price reached $445,478 in 2023 and further increased to $468,936 in 2024, representing a 5.3% year-over-year increase. This growth has occurred despite the Federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007.
Looking ahead, predictive models suggest that average home prices in zip code 60527 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We can expect average home prices to potentially reach around $520,000 by 2029. Average rent prices are also projected to increase, possibly reaching $1,900 by 2029, as demand for rental properties may grow if higher interest rates make homeownership less attainable for some residents.
In summary, zip code 60527 has demonstrated a strong housing market with increasing homeownership rates and substantial growth in average home prices. The interplay between federal interest rates, property values, and rent prices has shaped the local real estate landscape. As we move forward, the area is poised for continued growth in both home values and rental rates, reflecting its desirability as a residential location.
