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Average Home Values and Ownership in Zip Code 60625: A Decade of Growth in Chicago's Real Estate
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 60625, located in Chicago, Illinois, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This vibrant area, known for its diverse neighborhoods and proximity to amenities, has seen a gradual shift in its housing market dynamics.
The homeownership rate in zip code 60625 has shown a slight upward trend over the years. In 2013, the homeownership rate was 38%, and by 2022, it had increased to 40%. This 2% increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $232,298, and by 2022, it had climbed to $346,067, representing a 49% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable at 38-39%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased slightly to 40%. This suggests that other factors, such as local economic conditions or housing market dynamics, may have played a more significant role in homeownership decisions in this area than interest rates alone.
Renter percentages in zip code 60625 have shown a slight decline, mirroring the increase in homeownership. In 2013, 62% of residents were renters, which decreased to 60% by 2022. During this same period, average rent prices experienced a steady increase. The average rent in 2013 was $1,052, rising to $1,259 by 2022, an increase of approximately 20%. This rise in rent prices occurred alongside population growth, with the number of residents increasing from 79,839 in 2013 to 81,172 in 2022, potentially contributing to the upward pressure on rental costs.
In 2023 and 2024, the housing market in zip code 60625 continued to evolve. The average home price in 2023 reached $351,283, a further increase from 2022. In 2024, the average home price rose to $362,553, indicating continued growth in property values. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 60625 are likely to continue their upward trajectory over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $420,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially surpassing $1,500 per month within the same timeframe.
In summary, zip code 60625 has experienced a gradual increase in homeownership rates and significant growth in both average home prices and rent prices over the past decade. Despite rising interest rates, the area has maintained a strong housing market with steady population growth. The coming years are likely to see continued appreciation in property values and rental costs, reflecting the ongoing desirability and development of this Chicago neighborhood.
