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Zip Code 60018: Average Home Values and Ownership Trends in Des Plaines, 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 60018, located in Des Plaines, Illinois, is a dynamic area that has experienced notable shifts in homeownership rates and housing prices over the past decade. This suburban region, covering 9.24 square miles, has seen fluctuations in its population and housing market, reflecting broader economic trends and local developments.
The homeownership rate in zip code 60018 has remained relatively stable, with a slight decline from 75% in 2013 to 74% in 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $186,101, which increased significantly to $314,230 by 2022, representing a 68.8% increase over nine years. This substantial rise in home values occurred despite the slight decrease in homeownership, suggesting strong demand and appreciation in the local real estate market.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. This period coincided with a slight decrease in homeownership from 75% to 73%, possibly due to rising home prices outpacing the benefits of low interest rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stabilized at 73%. The sudden drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) corresponded with a slight increase in homeownership to 75%, likely due to more favorable borrowing conditions.
The rental market in zip code 60018 has shown interesting trends as well. The percentage of renters increased from 25% in 2013 to 26% in 2022, with a peak of 27% from 2017 to 2019. Average rent prices have fluctuated over the years, starting at $1,230 in 2013, dropping to $1,039 in 2015, and then rising again to $1,245 in 2022. This represents a modest overall increase of 1.2% in average rent from 2013 to 2022, significantly less than the growth in home prices. The population changes, from 28,439 in 2013 to 28,415 in 2022, suggest that rental demand has remained relatively stable despite the minor fluctuations.
In 2023 and 2024, the housing market in zip code 60018 continued its upward trajectory. The average home price reached $326,947 in 2023 and further increased to $345,244 in 2024, marking a substantial 9.9% year-over-year growth. This surge occurred despite a significant rise in federal interest rates, which jumped from 5.02% in 2023 to 5.33% in 2024, indicating strong local market fundamentals overriding national financing trends.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both home prices and rent in zip code 60018 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $400,000 by 2029. Rent prices, which have shown more modest growth, are likely to increase at a steady pace, possibly reaching an average of $1,400 to $1,500 per month in the same period.
In summary, zip code 60018 has demonstrated resilience and growth in its housing market. The area has maintained a high rate of homeownership despite significant increases in home values, indicating strong local demand and economic stability. The rental market, while showing more modest price growth, has remained an important component of the local housing ecosystem. With continued appreciation in home values and steady growth in rent prices expected, this zip code is poised to remain an attractive area for both homeowners and investors in the coming years.
