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Zip Code 60060: Robust Homeownership Amidst Rising Home Values in Mundelein, 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 60060, located in Mundelein, Illinois, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has maintained a relatively high rate of homeownership, with a slight decrease in recent years, while both average home prices and average rent prices have shown an upward trend.
The homeownership rate in zip code 60060 has experienced a gradual decline from 82% in 2013 to 78% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $197,242, which increased to $314,407 by 2022, representing a 59.4% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained historically low, ranging from 0.11% to 0.40%. During this period, homeownership rates in zip code 60060 remained relatively stable, hovering around 80-82%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decrease in homeownership rates to 78%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 60060 has increased from 18% in 2013 to 22% in 2022. Concurrently, average rent prices have risen from $1,473 in 2013 to $1,629 in 2022, an increase of 10.6% over nine years. This upward trend in both renter percentages and average rent prices suggests a growing demand for rental properties in the area. The population of the zip code has remained relatively stable during this period, increasing from 37,835 in 2013 to 38,591 in 2022, which may have contributed to the sustained demand for rental properties.
In 2023, the average home price in zip code 60060 reached $327,377, continuing the upward trend observed in previous years. This represents a 4.1% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, the average home price has further increased to $342,675, a 4.7% rise from 2023. The federal interest rate in 2024 stands at 5.33%, indicating a continued tightening of monetary policy.
Looking ahead, based on the observed trends and current economic conditions, we can forecast the following 5-year trends for average home and rent prices in zip code 60060: Average home prices are projected to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We estimate an average annual growth rate of 3-4%, which would put the average home price in the range of $397,000 to $416,000 by 2029. Average rent prices are expected to maintain their upward trend, driven by the increasing renter population and overall housing demand. We project an average annual increase of 2-3%, which could bring the average rent to approximately $1,800 to $1,900 per month by 2029.
In summary, zip code 60060 has experienced a slight shift towards renting, with homeownership rates decreasing from 82% to 78% between 2013 and 2022. During this period, average home prices have increased significantly by 59.4%, while average rent prices have risen by 10.6%. The relationship between federal interest rates and homeownership rates is evident, with recent increases in interest rates coinciding with a slight decline in homeownership. Looking forward, both average home prices and average rent prices are expected to continue their upward trends, although potentially at a more moderate pace due to economic factors such as higher interest rates.
