Loading Content...
Average Home Values and Ownership: Zip Code 60542's Evolving Housing Market Dynamics Near Fox River
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 60542, located in North Aurora, Illinois, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift from a predominantly owner-occupied community to one with an increasing renter population, alongside substantial growth in both home values and rental costs.
The homeownership rate in zip code 60542 has shown a steady decline from 2013 to 2022. In 2013, 78% of housing units were owner-occupied, but by 2022, this figure had dropped to 71%. This 7% decrease in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $197,544, which rose to $320,674 by 2022, representing a 62.3% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained stable at around 78-79%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general principle that higher interest rates can make homeownership less affordable, potentially contributing to the shift towards renting in the area.
The percentage of renters in zip code 60542 increased from 22% in 2013 to 29% in 2022, representing a 7% rise. This growth in the renter population coincided with an increase in average rent prices. In 2013, the average rent was $1,152, which rose to $1,275 by 2022, an increase of 10.7%. It's worth noting that the population in this zip code also grew during this period, from 12,399 in 2013 to 13,217 in 2022, potentially contributing to the increased demand for rental properties.
Looking at more recent data, the average home price in zip code 60542 continued to rise, reaching $334,721 in 2023 and $351,474 in 2024. This represents a further increase of 9.6% from 2022 to 2024. Interestingly, federal interest rates also saw a significant jump, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60542 will continue to rise, potentially reaching around $400,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,500 per month within the same timeframe. These projections are based on the historical trends observed in the data and assume relatively stable economic conditions.
In summary, zip code 60542 has experienced a shift towards a higher percentage of renters over the past decade, accompanied by substantial increases in both average home prices and rent costs. The interplay between rising home prices, increasing interest rates, and changing homeownership rates highlights the dynamic nature of the housing market in this area. As the community continues to grow and evolve, these trends are likely to shape the future of housing in North Aurora.
