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Zip Code 60089 Home Values and Ownership: Buffalo Grove's Resilient 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
Zip code 60089, located in Buffalo Grove, Illinois, has experienced fluctuating trends in homeownership and housing prices over the past decade. This suburban area has maintained a relatively high rate of owner-occupied housing, with average home prices showing a general upward trajectory despite some periods of decline.
The percentage of owner-occupied housing in zip code 60089 has remained relatively stable, with a slight increase from 80% in 2016 to 85% in 2022. This trend coincides with changes in average home prices, which rose from $293,283 in 2016 to $360,263 in 2022, representing a 22.8% increase over six years. The correlation between homeownership rates and average home prices suggests that despite rising costs, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in homeownership trends. In 2016, when interest rates were at 0.4%, the homeownership rate was 80%. As interest rates increased to 1.83% in 2018, the homeownership rate remained stable at 80%. However, when interest rates dropped to 0.08% in 2021, homeownership increased to 83%, demonstrating the impact of lower interest rates on homebuying decisions.
Renter percentages in zip code 60089 have shown a slight decrease, from 20% in 2017 to 15% in 2022. During this period, average rent prices fluctuated but generally increased. In 2017, the average rent was $1,721, rising to $1,861 in 2022, a 8.1% increase over five years. The decrease in renter percentage coupled with rising rent prices suggests a growing preference for homeownership in the area, possibly driven by the long-term financial benefits of owning versus renting.
In 2023, average home prices in zip code 60089 reached $377,959, marking a 4.9% increase from 2022. This trend continued into 2024, with average home prices further rising to $399,377, a 5.7% increase from 2023. Notably, federal interest rates also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage homebuying, the area has seen continued growth in home values.
Looking ahead, predictive models suggest that average home prices in zip code 60089 may continue to rise over the next five years, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 60089 has demonstrated resilience in its housing market, with a strong preference for homeownership despite rising home prices and fluctuating interest rates. The area has seen a gradual increase in owner-occupied housing, coupled with rising average home and rent prices. The continued growth in home values, even in the face of higher interest rates, suggests a robust demand for housing in this suburban Illinois location.
