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Average Home Values and Ownership Trends in Zip Code 60040: Highwood's Resilient Housing Market
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 60040, encompassing Highwood in Illinois, is a small yet densely populated area of 0.64 square miles that has experienced significant changes in homeownership rates and housing prices over the past decade. These changes reflect broader economic trends and local market dynamics.
The homeownership rate in zip code 60040 has shown considerable fluctuation since 2013. It started at 55% in 2013, declined to a low of 39% in 2019, and then rebounded to 51% in 2022. This trend coincides with changes in average home prices, which increased from $273,539 in 2013 to $367,604 in 2022, representing a 34% rise over this period. An inverse relationship appears to exist between homeownership rates and average home prices, with higher prices generally corresponding to lower ownership rates.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 60040. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.40%, coincided with the initial decline in homeownership rates. However, as interest rates began to rise in 2022 to 1.68%, homeownership rates also increased, suggesting that local factors may have had a stronger influence on ownership decisions than national interest rate trends during this period.
Renter percentages in zip code 60040 have shown an opposite trend to homeownership rates, increasing from 45% in 2013 to a peak of 61% in 2019 before decreasing to 49% in 2022. Average rent prices have also experienced significant changes, rising from $1,331 in 2013 to $1,474 in 2022, an 11% increase. The population of the zip code decreased from 5,043 in 2013 to 4,336 in 2022, which may have influenced the rental market dynamics, potentially contributing to the moderation in rent price increases despite the initial surge in renter percentages.
In 2023 and 2024, average home prices in zip code 60040 continued their upward trajectory, reaching $388,152 in 2023 and $414,626 in 2024. This represents a 12.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous years.
Looking ahead, predictive models suggest that average home prices in zip code 60040 may continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,600 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 60040 has experienced notable fluctuations in homeownership rates, with a recent trend towards increased ownership despite rising home prices. The rental market has shown resilience, with moderate increases in average rent prices despite population decreases. The interplay between federal interest rates, local economic factors, and housing market dynamics continues to shape the residential landscape of this Illinois community.
