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Rising Home Values and Ownership in Zip Code 60407: Braceville's Changing Real Estate Landscape
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 60407, located in Braceville, Illinois, has experienced notable shifts in homeownership rates and property values over the past decade. This rural community has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in average rent prices. The homeownership rate in zip code 60407 has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 83%, which dipped slightly to 76% in 2014 before recovering and reaching 84% by 2022. This upward trend in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $93,002, which rose consistently year over year, reaching $172,750 by 2022. This represents an impressive 85.7% increase in average home values over this period.
The relationship between federal interest rates and homeownership rates in this zip code is interesting. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased from 79% to 84%. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates in this particular area.
Renter percentages in zip code 60407 have generally decreased as homeownership has increased. In 2013, renters made up 17% of the population, which peaked at 24% in 2014 before gradually declining to 16% by 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $1,090, which decreased to $1,009 in 2015 before rising to $1,187 in 2017. By 2022, the average rent had settled at $1,153, representing a modest 5.8% increase from 2013 to 2022.
In 2023 and 2024, average home prices in zip code 60407 continued their upward trajectory, reaching $185,918 in 2023 and $200,326 in 2024. This represents a 7.6% increase from 2022 to 2023 and a further 7.7% increase from 2023 to 2024. Interestingly, these price increases occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the consistent upward trend in average home prices, we can predict that this growth is likely to continue over the next five years. Using a simple linear regression model, we might expect average home prices in zip code 60407 to reach approximately $250,000 by 2029. For rent prices, the trend has been more variable, but assuming a modest annual increase of 2-3%, we could see average rents rise to around $1,300-$1,350 by 2029.
In summary, zip code 60407 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. Despite fluctuations in interest rates and rent prices, the area has maintained a high rate of owner-occupied housing and seen substantial appreciation in average home values. These trends suggest a stable and potentially growing real estate market in this Illinois community.
