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Average Home Values and Ownership in Zip Code 60606: Chicago's Evolving Real Estate Landscape
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 60606, located in the heart of Chicago, Illinois, has experienced significant changes in its real estate landscape over the past decade. This area, known for its bustling business district, has seen a gradual shift towards a more renter-dominated market, accompanied by fluctuations in average home prices and a steady increase in average rent prices.
From 2013 to 2022, the percentage of owner-occupied housing in zip code 60606 decreased from 41% to 30%, while average home prices showed volatility. In 2013, the average home price was $312,527, rising to a peak of $376,707 in 2017, before declining to $308,835 in 2022. This inverse relationship between homeownership rates and average home prices suggests that as properties became more expensive, fewer residents were able to purchase homes in the area.
Federal interest rates have played a role in homeownership trends in 60606. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership remained relatively stable at around 35-37%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 30%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in 60606 increased from 59% in 2013 to 69% in 2022. This shift coincided with a significant rise in average rent prices, from $1,552 in 2013 to $2,414 in 2022, representing a 55.5% increase over nine years. The growing renter population, which more than doubled from 2,073 in 2013 to 4,085 in 2022, likely contributed to the upward pressure on rent prices due to increased demand for rental properties.
In 2023 and 2024, average home prices in 60606 continued to decline, reaching $297,197 in 2023 and $288,259 in 2024. This downward trend occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the cooling of the housing market in this area.
Looking ahead, predictive models suggest that average home prices in 60606 may continue to decrease slightly over the next five years, potentially stabilizing around $280,000 by 2029. Conversely, average rent prices are projected to maintain their upward trajectory, potentially reaching $2,800-$3,000 per month by 2029, driven by the area's growing population and continued shift towards a renter-majority market.
In summary, zip code 60606 has transformed into a predominantly renter-occupied area over the past decade, with homeownership rates declining as average home prices fluctuated. The steady increase in average rent prices, coupled with population growth, has shaped the local real estate market. As interest rates continue to play a significant role, the area is likely to see further changes in its housing dynamics in the coming years.
