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Home Values and Ownership in Zip Code 60042: Island Lake'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
Island Lake, located in zip code 60042 in Illinois, has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices, providing insights into the local real estate landscape.
The homeownership rate in Island Lake has shown some fluctuation but remained relatively stable over the years. In 2013, the homeownership rate was 87%, which decreased to 79% in 2018, before rebounding to 82% in 2022. This overall trend suggests a slight decrease in homeownership over the decade. Concurrently, average home prices in the area have shown a significant upward trend. In 2013, the average home price was $121,170, which steadily increased to $241,600 by 2022, representing a substantial 99.4% increase over this period.
The relationship between federal interest rates and homeownership rates in Island Lake appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.4%), the homeownership rate remained relatively high, above 80%. However, as interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership, dropping to 79% in 2018 when the federal interest rate reached 1.83%.
Renter percentages in Island Lake have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 13% in 2013 to 21% in 2018, before settling at 18% in 2022. Average rent prices have also seen an upward trend, albeit with some fluctuations. In 2013, the average rent was $1,567, which increased to $1,892 in 2018, representing a 20.7% increase. However, by 2022, the average rent had decreased slightly to $1,609, still 2.7% higher than the 2013 figure. These trends in renter percentages and rent prices may be influenced by the area's population changes, which decreased from 7,912 in 2013 to 7,480 in 2022.
Looking at the most recent data, the average home price in Island Lake continued its upward trajectory, reaching $253,126 in 2023 and further increasing to $267,611 in 2024. This represents a 10.8% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Island Lake will continue to rise, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,800 by 2029. These projections assume relatively stable economic conditions and continued population growth in the area.
In summary, Island Lake has experienced a slight decrease in homeownership rates over the past decade, coupled with significant increases in average home prices. Renter percentages have shown some fluctuation, with average rent prices following a general upward trend. The recent sharp increase in federal interest rates may impact future homeownership rates and market dynamics. Overall, the real estate market in zip code 60042 appears to be robust, with continued growth expected in both home values and rental prices over the next five years.
