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Rising Home Values and Shifting Ownership in Zip Code 60056: Mount Prospect's Evolving 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
Mount Prospect, located in zip code 60056 in Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This suburban community, situated approximately 20 miles northwest of Chicago, has seen fluctuations in its population and housing market dynamics. The homeownership rate in zip code 60056 has shown a gradual decline from 2013 to 2020, with a slight rebound in recent years. In 2013, the homeownership rate stood at 74%, but it decreased to 70% by 2020. This trend coincided with an overall increase in average home prices. In 2013, the average home price was $239,033, which rose to $309,777 by 2020, representing a 29.6% increase over seven years. Despite the rising home prices, the homeownership rate stabilized at 71% in 2021 and 2022, suggesting a potential correlation between housing affordability and ownership rates.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 60056. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, average home prices increased steadily, rising from $239,033 in 2013 to $291,318 in 2016, a 21.9% increase. As interest rates began to rise more significantly from 2017 to 2019, reaching 2.16% in 2019, the growth in average home prices slowed, with the 2019 average at $308,173. The sudden drop in interest rates to 0.38% in 2020 and 0.08% in 2021 coincided with a renewed surge in average home prices, reaching $335,951 in 2021, a 8.4% increase from the previous year.
The rental market in zip code 60056 has shown an inverse relationship to homeownership trends. As the percentage of renters increased from 26% in 2013 to 30% in 2020, average rent prices also rose. In 2013, the average rent was $1,171, which increased to $1,387 by 2020, an 18.4% rise. The population remained relatively stable during this period, with only minor fluctuations, suggesting that the increase in renters was not primarily driven by population growth but rather by shifts in housing preferences or affordability issues.
In 2023, the average home price in zip code 60056 reached $374,450, a 3.5% increase from 2022. This growth occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $394,534, representing a 5.4% rise from 2023. The federal interest rate in 2024 stands at 5.33%, continuing the upward trend and potentially impacting future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 60056 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall trend of rising housing costs. However, the rate of increase for both home prices and rents may moderate if interest rates remain elevated, potentially affecting affordability and demand.
In summary, zip code 60056 has experienced a complex interplay between homeownership rates, average home prices, and rental market dynamics. The gradual shift towards a higher percentage of renters, coupled with rising home and rent prices, reflects broader economic trends and changing housing preferences. The recent stabilization of homeownership rates, despite continued price increases, suggests a potential new equilibrium in the local housing market. As interest rates remain high, the coming years may see a more tempered growth in both home prices and rents, with potential implications for housing affordability and market accessibility in Mount Prospect.
