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Zip Code 60442: Rising Home Values and Strong Ownership in Manhattan, 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
Manhattan, located in zip code 60442 in Illinois, has experienced significant growth and changes in its housing market over the past decade. This suburban community has seen a notable increase in population and homeownership rates, coupled with fluctuations in average home prices and rent costs.
The homeownership rate in Manhattan has shown a strong upward trend, increasing from 86% in 2017 to 92% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2017, the average home price was $236,310, which steadily climbed to $324,656 by 2022, representing a 37.4% increase over five years. This trend suggests a growing demand for homeownership in the area, possibly driven by the community's appeal and development.
Federal interest rates have played a significant role in shaping homeownership trends in Manhattan. The period from 2010 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, around 89-90%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a counterintuitive increase in homeownership rates from 86% to 92%. This suggests that other local factors, such as job growth or community development, may have outweighed the impact of rising interest rates on homeownership decisions in this area.
The renter population in Manhattan has conversely decreased, from 14% in 2017 to 8% in 2022. Interestingly, average rent prices have shown a downward trend during this period. In 2017, the average rent was $1,463, which decreased to $1,147 by 2022, a 21.6% reduction. This decline in both renter population and rent prices could be attributed to the increasing preference for homeownership in the area, potentially leaving a surplus of rental properties and driving down prices.
Looking at the most recent data, the average home price in Manhattan continued its upward trajectory, reaching $342,809 in 2023 and further increasing to $356,449 in 2024. This represents a 9.8% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, hitting 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, the continued rise in home prices suggests a robust demand for housing in the area.
Applying predictive models to forecast future trends, we anticipate that average home prices in Manhattan will continue to rise over the next five years, albeit at a potentially slower rate due to the current high interest rates. We project average home prices could reach around $400,000 by 2029. Rent prices, which have been declining, may stabilize or slightly increase as the rental market adjusts to the decreased supply of rental properties. We estimate average rents could return to around $1,300-$1,400 per month in the next five years.
In summary, Manhattan (60442) has demonstrated a strong trend towards homeownership, with rising home values and a decreasing renter population. The community has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. These trends suggest a growing attractiveness of the area for long-term residents and potential for continued development and property value appreciation in the coming years.
