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Average Home Values and Ownership Rise in Zip Code 60563 Amid Interest Rate Fluctuations
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 60563, located in Naperville, Illinois, is a thriving suburban area known for its excellent schools and high quality of life. This zip code has experienced notable fluctuations in homeownership rates and steady increases in both average home prices and average rent prices over the past decade.
The homeownership rate in zip code 60563 has remained relatively stable, hovering around 55-56% from 2013 to 2022. However, there have been slight variations within this range. For instance, in 2015, the homeownership rate peaked at 58%, before settling back to 55% in 2022. During this same period, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $268,342, which increased to $384,414 by 2022, representing a substantial 43% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For example, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate remained steady at 55-56%. This stability in homeownership, despite favorable interest rates, suggests that other factors such as high home prices may have offset the potential increase in homeownership that low interest rates typically encourage.
Renter percentages in zip code 60563 have complemented the homeownership rates, ranging from 42% to 45% between 2013 and 2022. The average rent prices have shown a general upward trend during this period. In 2013, the average rent was $1,425, which increased to $1,535 by 2022, a 7.7% increase. Notably, there was a significant jump in average rent from $1,540 in 2020 to $1,617 in 2021, possibly influenced by the pandemic and changing housing preferences.
Looking at the most recent data, the average home price in zip code 60563 reached $400,960 in 2023 and further increased to $429,036 in 2024. This represents a substantial 11.6% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may impact affordability and potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60563 will continue to rise, potentially reaching around $500,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,800 per month within the same timeframe. These projections are based on the historical trends and current market conditions.
In summary, zip code 60563 has maintained a relatively stable homeownership rate despite significant increases in average home prices. The area has experienced steady growth in both home values and rent prices, with recent years showing accelerated appreciation. The interplay between rising home prices, increasing interest rates, and stable homeownership rates suggests a resilient housing market in this Naperville zip code.
