Loading Content...
Zip Code 60061: Rising Home Values and Shifting Ownership Trends in Vernon Hills
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Vernon Hills, located in zip code 60061 in Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This suburban community has seen a general trend of decreasing homeownership and increasing average home and rent prices, reflecting broader economic and demographic changes.
The homeownership rate in zip code 60061 has shown a gradual decline from 75% in 2013 to 66% in 2022. This decrease coincides with a significant increase in average home prices, rising from $249,965 in 2013 to $359,221 in 2022, representing a 43.7% increase over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period saw only minor fluctuations in homeownership rates, with a slight downward trend. However, as interest rates began to rise more significantly in 2022 to 1.68%, the homeownership rate stabilized at 66%, possibly indicating that some potential buyers were priced out of the market due to higher borrowing costs.
The renter population in zip code 60061 has grown from 25% in 2013 to 34% in 2022, mirroring the decline in homeownership. Average rent prices have also increased, rising from $1,627 in 2013 to $1,925 in 2022, a 18.3% increase. This trend suggests that as home prices climbed, more residents turned to renting, driving up demand and subsequently, rent prices. The population growth from 24,964 in 2013 to 25,894 in 2022 may have contributed to the increased demand for rental properties.
In 2023 and 2024, average home prices in zip code 60061 continued to rise, reaching $380,170 in 2023 and $400,106 in 2024. This represents a substantial 11.4% increase from 2022 to 2024. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 60061 may continue to increase over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to rise, possibly surpassing $2,200 per month within the same timeframe. These projections assume a continuation of current economic conditions and housing market trends.
In summary, zip code 60061 has experienced a shift towards renting, with homeownership rates declining as average home prices and rents have increased. The interplay between federal interest rates, housing affordability, and population growth has shaped these trends. As the community continues to evolve, it's likely that housing market dynamics will remain a significant factor in shaping the residential landscape of Vernon Hills.
