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Zip Code 60440: Rising Home Values and Shifting Ownership in Bolingbrook, 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 60440, located in Bolingbrook, Illinois, is a dynamic suburban area covering 16.06 square miles. This zip code has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 60440 has shown a gradual decline from 2013 to 2022. In 2013, 78% of residents were homeowners, but by 2022, this figure had decreased to 74%. This trend coincides with an overall increase in average home prices. In 2013, the average home price was $144,715, and it rose steadily to reach $279,403 in 2022, representing a substantial 93% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 60440. From 2013 to 2016, interest rates remained historically low, hovering around 0.1-0.4%. During this period, homeownership rates remained relatively stable, ranging from 76% to 78%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates saw a slight decline. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership by making mortgages more affordable, while higher rates can deter potential buyers.
The renter population in zip code 60440 has increased correspondingly with the decline in homeownership. The percentage of renters rose from 21% in 2013 to 26% in 2022. This shift has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,595, which peaked at $1,662 in 2021 before slightly decreasing to $1,609 in 2022. The overall trend shows a modest 0.9% increase in average rent from 2013 to 2022, despite the growing renter population. This relatively stable rent price, coupled with rising home prices, may have contributed to the increasing preference for renting in the area.
As of 2024, the average home price in zip code 60440 has reached $297,637, continuing the upward trend observed in previous years. This represents a 6.5% increase from the 2022 average price of $279,403. Concurrently, the federal interest rate has risen significantly to 5.33% in 2024, up from 1.68% in 2022. This substantial increase in interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Looking ahead, predictive models suggest that average home prices in zip code 60440 may continue to rise over the next five years, potentially reaching around $350,000 by 2029. This projection is based on the historical growth rate and current market conditions. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,800 by 2029. These predictions assume a continuation of current economic trends and local market factors.
In summary, zip code 60440 has experienced a gradual shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The substantial increase in average home prices, coupled with relatively stable rent prices, has likely influenced this trend. As the area continues to evolve, the interplay between housing prices, interest rates, and demographic shifts will shape the future of homeownership and renting patterns in this suburban Illinois community.
