Loading Content...
Average Home Values and Ownership in Zip Code 60540: A Decade of Growth in Naperville's Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 60540, located in Naperville, Illinois, is a dynamic area that has experienced significant changes in homeownership and housing prices over the past decade. This suburban community, known for its excellent schools and high quality of life, has seen a relatively stable homeownership rate alongside fluctuating average home and rent prices. The homeownership rate in zip code 60540 has remained relatively steady, with a slight decline from 77% in 2013 to 75% in 2022. Despite this minor decrease, the average home prices have shown a substantial increase. In 2013, the average home price was $369,309, which rose to $510,679 by 2022, representing a 38.3% increase over nine years. This upward trend in home prices, coupled with a relatively stable homeownership rate, suggests a robust housing market in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), the homeownership rate remained steady at around 76-77%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 75% by 2022. This aligns with the general trend where lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 60540 have shown a slight increase, from 22% in 2013 to 25% in 2022. This change corresponds with an increase in average rent prices. In 2013, the average rent was $1,470, which rose to $1,747 by 2022, representing an 18.8% increase. The population in the zip code has remained relatively stable during this period, growing from 43,865 in 2013 to 44,119 in 2022, suggesting that the increase in rent prices is not solely due to population growth but may be influenced by other factors such as housing demand and overall economic conditions.
Looking at the most recent data, the average home price in zip code 60540 continued its upward trajectory, reaching $537,121 in 2023 and $575,820 in 2024. This represents a significant 12.7% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen since 2007. These high 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 60540 will continue to rise, potentially reaching around $650,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, we expect a more moderate increase, potentially reaching an average of $2,000 per month by 2029, assuming the current economic conditions and housing demand persist.
In summary, zip code 60540 has demonstrated a resilient housing market with steadily increasing home values and rent prices. The area has maintained a high homeownership rate despite rising housing costs, suggesting strong local economic conditions and desirability. However, the recent sharp increase in interest rates may present new challenges for potential homebuyers in the coming years, potentially affecting the balance between homeownership and renting in this suburban Chicago community.
