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Zip Code 60406: Rising Home Values and Shifting Ownership in Blue Island, 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 60406, located in Blue Island, Illinois, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual transition from a predominantly owner-occupied community to one with an equal balance of owners and renters, accompanied by fluctuations in average home prices and rent costs.
The homeownership rate in zip code 60406 has shown a steady decline from 2013 to 2022. In 2013, 54% of housing units were owner-occupied, but by 2022, this figure had decreased to 50%. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $61,891, which rose dramatically to $176,285 by 2022, representing a 184.8% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends in zip code 60406. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with relatively stable homeownership rates around 55-56%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 53% in 2017 to 50% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable and potentially discourage homeownership.
As homeownership rates declined, the percentage of renters in zip code 60406 increased from 46% in 2013 to 50% in 2022. This shift was accompanied by a rise in average rent prices, from $895 in 2013 to $940 in 2022, an increase of 5%. However, it's worth noting that the population in this zip code decreased from 25,813 in 2013 to 24,226 in 2022, which may have moderated rent price increases despite the growing proportion of renters.
Looking at the most recent data, the average home price in zip code 60406 slightly decreased to $174,656 in 2023 but is projected to rise to $182,774 in 2024. This occurs against a backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60406 will continue to rise, potentially reaching around $210,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections are based on the historical trends and current economic conditions.
In summary, zip code 60406 has undergone a significant transformation in its housing market dynamics. The area has shifted from a majority owner-occupied community to one with an equal split between owners and renters. This change has been accompanied by substantial increases in average home prices and moderate rises in rent costs. The interplay between federal interest rates, housing affordability, and demographic shifts will likely continue to shape the housing landscape in this Blue Island zip code in the coming years.
