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Average Home Values and Ownership in Zip Code 60641: A Decade of Growth in Chicago's Diverse Neighborhood
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 60641, located in Chicago, Illinois, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area, known for its diverse neighborhoods and proximity to the city center, has seen a general trend towards increased homeownership and rising property values. The ownership percentage in zip code 60641 has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 49%, and it gradually rose to 54% by 2022. This upward trend in homeownership coincided with a substantial increase in average home prices. The average home price in 2013 was $185,815, and it rose consistently year over year, reaching $347,751 in 2022. This represents an impressive 87% increase in average home prices over this period.
The relationship between federal interest rates and homeownership rates in this zip code demonstrates an interesting pattern. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate increased from 49% to 50%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate continued to climb, reaching 54% in 2019. This suggests that while lower interest rates generally encourage homeownership, other factors such as local economic conditions and housing market dynamics also play a significant role in this zip code.
Renter percentages in zip code 60641 have shown an inverse relationship to homeownership rates, decreasing from 51% in 2013 to 46% in 2022. Despite this decline in the proportion of renters, average rent prices have steadily increased. In 2013, the average rent was $1,013, and it rose to $1,133 by 2022, representing a 12% increase over this period. The population in the zip code has fluctuated, with 69,914 residents in 2013 and 67,638 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in zip code 60641 for 2023 was $351,410, showing a continued upward trend from 2022. In 2024, the average home price further increased to $366,627, indicating sustained growth in property values. Correspondingly, interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which 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 60641 will continue to rise, potentially reaching around $425,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,350 by 2029, reflecting the slower pace of growth in rental rates compared to home prices.
In summary, zip code 60641 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has seen a significant 87% increase in average home prices from 2013 to 2022, alongside a 5 percentage point increase in homeownership rates. Despite fluctuations in population and rising interest rates, the housing market in this Chicago zip code has shown resilience and continued growth, with predictions suggesting further appreciation in both home values and rental rates in the coming years.
