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Zip Code 60195: Rising Home Values and Stable Ownership in Hoffman Estates, 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 60195, located in Hoffman Estates, Illinois, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area has seen a gradual shift towards renting, with a corresponding increase in both average home prices and average rent costs.
The homeownership rate in zip code 60195 has shown a slight downward trend from 2013 to 2022. In 2013, the percentage of owner-occupied homes was 42%, which decreased to 41% by 2022. This decline coincided with a significant increase in average home prices. In 2013, the average home price was $109,275, which rose steadily to reach $184,047 by 2022, representing a 68.4% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in this area. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at 41-43%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized at 41%, suggesting that higher interest rates may have deterred some potential buyers.
The renter percentage in zip code 60195 has shown a corresponding increase, rising from 57% in 2013 to 59% in 2022. This shift towards renting has been accompanied by a steady rise in average rent prices. In 2013, the average rent was $1,242, which increased to $1,520 by 2022, representing a 22.4% increase. The population in this zip code has fluctuated over the years, from 5,014 in 2013 to 5,603 in 2022, which may have contributed to the demand for rental properties.
As of 2024, the average home price in zip code 60195 has reached $219,145, showing a substantial increase from the 2022 figure. This represents a 19% increase in just two years. Simultaneously, the federal interest rate has risen significantly to 5.33% in 2024, which is the highest it has been in over a decade. This combination of rising home prices and higher interest rates could potentially impact future homeownership rates in the area.
Looking ahead, based on the trends observed, we can predict that average home prices in zip code 60195 will continue to rise over the next five years, potentially reaching around $260,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,800 per month by 2029. These projections assume a continuation of current economic conditions and housing market trends.
In summary, zip code 60195 has experienced a gradual shift towards renting, with homeownership rates decreasing slightly and renter percentages increasing. This trend has been accompanied by significant increases in both average home prices and average rent costs. The interplay between federal interest rates, housing prices, and rental demand has shaped the real estate landscape in this area, with recent sharp increases in both home prices and interest rates potentially setting the stage for further changes in the coming years.
