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Rising Home Values and Declining Ownership in Lake Bluff's 60044 Zip Code: A Decade of Housing Market Shifts
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 60044, located in Lake Bluff, Illinois, is a suburban area known for its picturesque lakeside setting and affluent community. Over the past decade, this zip code has experienced notable shifts in homeownership rates and housing market dynamics. The area has seen a gradual decrease in homeownership, coupled with fluctuations in average home prices and average rent prices.
From 2013 to 2022, the homeownership rate in zip code 60044 decreased from 73% to 68%, indicating a shift towards renting. During this period, average home prices showed an overall upward trend, albeit with some fluctuations. In 2013, the average home price was $377,527, which increased to $503,638 by 2022, representing a 33.4% increase over nine years. Notably, there was a significant jump in average home prices between 2020 and 2022, rising from $414,174 to $503,638, a 21.6% increase in just two years.
The relationship between federal interest rates and homeownership rates in zip code 60044 appears to follow the general trend observed nationally. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates remained relatively stable, fluctuating between 73% and 75%. However, as interest rates began to rise in 2022 to 1.68%, homeownership rates declined to 68%, suggesting that higher interest rates may have discouraged some potential buyers from entering the market.
Renter percentages in zip code 60044 increased from 27% in 2013 to 32% in 2022, mirroring the decline in homeownership. Average rent prices also saw a significant increase during this period, rising from $1,488 in 2013 to $1,914 in 2022, a 28.6% increase. The population in the zip code remained relatively stable, growing slightly from 9,477 in 2013 to 10,038 in 2022, which may have contributed to the steady increase in rental demand and prices.
In 2023 and 2024, average home prices in zip code 60044 continued to rise, reaching $526,497 in 2023 and $557,035 in 2024. This represents a 10.6% increase from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60044 will continue to increase, potentially reaching around $650,000 by 2029. Average rent prices are also expected to rise, potentially surpassing $2,200 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 60044 has experienced a gradual shift towards renting, with homeownership rates declining from 73% to 68% between 2013 and 2022. Despite this trend, average home prices have shown significant growth, particularly in recent years. The rental market has also seen substantial increases in both demand and prices. The area's desirability, coupled with broader economic factors such as interest rates, has likely contributed to these trends. Looking ahead, we expect continued growth in both home prices and rental rates, reflecting the ongoing demand for housing in this attractive suburban location.
