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Rising Home Values and High Ownership Rates in Zip Code 60203: A Stable Market in Skokie
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 60203, located in Skokie, Illinois, is a small but dynamic area covering just 0.68 square miles. This predominantly owner-occupied neighborhood has experienced fluctuations in both homeownership rates and average home prices over the past decade, while maintaining a relatively stable rental market.
The homeownership rate in zip code 60203 has remained consistently high, ranging from 92% to 94% between 2013 and 2022. This strong preference for homeownership coincides with significant changes in average home prices. In 2013, the average home price was $323,575, which steadily increased to $486,869 by 2022, representing a substantial 50.5% increase over nine years. Notably, the most significant year-over-year increase occurred between 2020 and 2021, when average home prices jumped from $414,008 to $452,785, a 9.4% rise.
Federal interest rates appear to have influenced homeownership rates in this zip code, albeit to a limited extent due to the already high proportion of owner-occupied homes. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership remained stable at 92%. However, as interest rates began to rise in 2022 to 1.68%, there was a slight increase in homeownership to 94%, possibly indicating a rush to secure mortgages before rates climbed further.
The rental market in zip code 60203 has remained relatively small but stable, with the percentage of renters fluctuating between 6% and 8% from 2013 to 2022. Average rent prices have shown a general upward trend, increasing from $1,643 in 2013 to $1,960 in 2022, a 19.3% rise over the period. Interestingly, the most significant jump in average rent occurred between 2018 and 2019, increasing from $1,695 to $1,932, a 14% increase in a single year. This spike in rent prices coincided with a slight increase in the renter population from 7% to 8%, suggesting a possible increase in demand for rental properties during this period.
In 2023 and 2024, the average home prices in zip code 60203 continued their upward trajectory. The average home price reached $495,766 in 2023 and further increased to $510,158 in 2024, representing a 3.1% year-over-year growth. This rise occurred despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically be expected to dampen housing demand, but the continued price appreciation suggests strong underlying demand in this zip code.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 60203 may continue to appreciate, albeit at a more moderate pace due to higher interest rates. A conservative estimate might see average home prices reaching around $550,000 to $575,000 by 2029. Average rent prices are likely to follow a similar trajectory, potentially reaching $2,200 to $2,400 per month by 2029, assuming continued demand for rental properties in the area.
In summary, zip code 60203 demonstrates a strong preference for homeownership, with average home prices showing significant appreciation over the past decade. The rental market, while small, has seen steady increases in average rent prices. Despite rising interest rates, both the housing and rental markets in this zip code have displayed resilience, suggesting a desirable location with continued demand for both owned and rented properties.
