Loading Content...
Zip Code 60146: Rising Home Values and Shifting Ownership Patterns in Kirkland, Illinois
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Kirkland, located in zip code 60146 in Illinois, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insight into the evolving real estate landscape of this area. The homeownership rate in Kirkland has shown a gradual decline from 2013 to 2022, decreasing from 82% to 76%. This decline coincided with a significant increase in average home prices, which rose from $121,392 in 2013 to $231,713 in 2022, representing a 90.9% increase. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Kirkland. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable at around 81-82%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 76%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Kirkland has seen a corresponding increase as homeownership rates declined. The percentage of renters rose from 18% in 2013 to 24% in 2022. Average rent prices have shown considerable volatility during this period, peaking at $1,143 in 2015 before declining to $859 in 2022. This 24.3% decrease in average rent over the decade is noteworthy, especially considering the simultaneous increase in the renter population. The decline in average rent prices, despite increasing demand, could be attributed to various factors such as changes in housing stock or local economic conditions.
In 2023 and 2024, the housing market in Kirkland continued to evolve. The average home price rose to $239,848 in 2023 and further increased to $252,454 in 2024, representing a 9% growth over two years. This upward trend occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet home prices in the area continued to appreciate, suggesting strong demand or limited housing supply.
Looking ahead, predictive models forecast continued growth in average home prices for Kirkland over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach around $300,000 by 2029. The trajectory of average rent prices is less clear due to their recent volatility. If the trend of the past few years continues, average rents might stabilize or see modest increases, potentially reaching around $950-$1,000 by 2029.
In summary, Kirkland has experienced a gradual shift towards a higher proportion of renters, coupled with substantial increases in average home prices. The inverse relationship between homeownership rates and home prices, influenced by fluctuating interest rates, highlights the changing dynamics of the local housing market. The divergence between rising home prices and declining average rents presents an intriguing scenario for future housing trends in this Illinois community.
