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Average Home Values and Ownership Trends in Zip Code 62629: Chatham's Shifting 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
Chatham, located in zip code 62629 in Illinois, is a growing suburban community that has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in the area. The homeownership rate in Chatham has remained relatively stable, with a slight decline from 85% in 2013 to 80% in 2022. During this same period, average home prices have shown a steady increase. In 2013, the average home price was $182,285, and by 2022, it had risen to $238,098, representing a 30.6% increase over nine years. This upward trend in home prices, coupled with the relatively stable homeownership rate, suggests that Chatham has maintained its appeal to homeowners despite rising costs.
Federal interest rates have played a role in shaping homeownership trends in Chatham. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which likely contributed to the high homeownership rates observed during this period (82-85%). As interest rates began to rise in 2017 (1.00%) and continued to increase through 2019 (2.16%), we see a corresponding slight decrease in homeownership rates from 80% to 79%. However, the dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) appears to have helped stabilize homeownership at 80-81% in those years.
The renter population in Chatham has grown from 13% in 2013 to 20% in 2022. This increase in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,093, which decreased to $1,009 in 2015 before rising again to $1,258 in 2021. Interestingly, despite the growing renter population, average rent prices dropped to $1,113 in 2022. This could be attributed to increased housing supply or other local economic factors.
Looking at the most recent data, we see that average home prices in Chatham continued to rise significantly in 2023 and 2024. The average home price reached $258,210 in 2023 and further increased to $271,577 in 2024, representing a 14.1% increase over two years. This rapid appreciation occurred despite a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to cool the housing market, yet Chatham appears to be experiencing strong demand that is overriding the impact of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Chatham will continue to rise, albeit at a potentially slower pace due to the current high interest rate environment. Average home prices could reach approximately $300,000 to $320,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,300 to $1,400 per month in the next five years, driven by the growing renter population and overall housing demand in the area.
In summary, Chatham has demonstrated a resilient housing market with steadily increasing average home prices and a relatively stable homeownership rate. The community has seen a growing renter population, which has been accompanied by fluctuating but generally increasing average rent prices. Despite recent high interest rates, the housing market in this zip code continues to show strength, suggesting ongoing demand for housing in this Illinois suburb.
