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Zip Code 60007: Rising Home Values and Stable Ownership in Elk Grove Village, Illinois
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 60007, located in Elk Grove Village, Illinois, presents an interesting case study of real estate trends in a suburban Chicago community. Over the past decade, this area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 60007 has remained relatively stable, with a slight downward trend from 73% in 2013 to 72% in 2020, before returning to 73% in 2022. During this same period, average home prices have shown a notable upward trajectory. In 2013, the average home price was $201,511, which steadily increased to $315,546 by 2022, representing a substantial 56.6% growth over nine years. This trend suggests that while homeownership rates have remained relatively consistent, the value of properties in the area has appreciated significantly.
Federal interest rates have played a role in shaping homeownership trends in zip code 60007. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained steady at around 73%, likely supported by favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight dip in homeownership to 71% in 2017 before stabilizing back at 73% by 2022. This resilience in homeownership rates despite rising interest rates may indicate strong local demand and a robust housing market in the area.
Renter percentages in zip code 60007 have shown a slight increase from 26% in 2013 to 27% in 2022, with some fluctuations in between. Interestingly, average rent prices have also experienced an upward trend, albeit with some variability. In 2013, the average rent was $1,268, which increased to $1,538 by 2021, representing a 21.3% increase. However, there was a slight decrease to $1,338 in 2022. The overall trend of increasing rent prices, despite minor fluctuations, aligns with the growing population density in the area, which rose from 2,118.08 people per square mile in 2013 to 2,049.05 in 2022, potentially indicating sustained demand for rental properties.
Looking at the most recent data, the average home price in zip code 60007 continued its upward trajectory, reaching $331,085 in 2023 and further increasing to $352,083 in 2024. This represents a significant 11.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest levels in over a decade. These higher interest rates may impact future homeownership rates and property values in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices for zip code 60007, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $400,000 by 2029. For rent prices, the forecast suggests a steady increase, potentially reaching an average of $1,700 to $1,800 per month by 2029, assuming consistent economic growth and demand in the area.
In summary, zip code 60007 has demonstrated resilience in homeownership rates despite rising property values and fluctuating interest rates. The area has seen substantial appreciation in home values and a general upward trend in rent prices, indicative of a strong local real estate market. The recent sharp increase in interest rates, combined with continuing home price appreciation, may present new challenges and opportunities for both homeowners and renters in this suburban Chicago community in the coming years.
