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Zip Code 60452: Rising Home Values and Stable Ownership in Oak Forest, 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
Oak Forest, Illinois, zip code 60452, is a suburban area located southwest of Chicago. This community has experienced notable shifts in homeownership rates and housing prices over the past decade. The area has maintained a relatively high percentage of owner-occupied housing, with average home prices showing an upward trend, particularly in recent years. Meanwhile, average rent prices have fluctuated but generally increased over time.
The homeownership rate in Oak Forest has remained relatively stable, with slight fluctuations between 77% and 81% from 2013 to 2022. During this period, average home prices in the area have shown a significant upward trend. In 2013, the average home price was $148,935, which steadily increased to $259,479 by 2022, representing a 74% increase over nine years. This rise in home prices, coupled with the relatively stable homeownership rate, suggests that despite increasing property values, Oak Forest has maintained its appeal as a community for homeowners.
Federal interest rates have played a role in homeownership trends in Oak Forest. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained high, between 78% and 80%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership, dropping to 77% in 2018 and 2019. However, when interest rates dropped again in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 81% and 79% respectively, demonstrating the influence of lower interest rates on homeownership affordability.
The renter population in Oak Forest has shown slight variations, ranging from 19% to 23% between 2013 and 2022. Average rent prices have generally increased during this period, with some fluctuations. In 2013, the average rent was $1,379, which rose to $1,562 in 2014, an increase of 13.3%. After some ups and downs, the average rent reached $1,514 in 2022. Interestingly, the highest average rent of $1,562 was observed in 2014 and 2016, coinciding with years when the renter population was at 20%, slightly lower than the peak of 23% seen in 2018 and 2019.
Looking at the most recent data, the average home price in Oak Forest continued to rise, reaching $263,929 in 2023 and further increasing to $272,027 in 2024. This represents a 4.8% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Oak Forest will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $300,000 to $320,000, assuming a conservative annual growth rate of 2-3%. For average rent prices, we project a continued upward trend, potentially reaching $1,700 to $1,800 per month by 2029, based on historical patterns and accounting for inflation and housing demand.
In summary, Oak Forest (60452) has maintained a strong homeownership base despite rising home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with lower rates generally supporting higher homeownership. The rental market has seen steady demand with gradually increasing average rents. Looking ahead, while home prices and rents are expected to continue rising, the pace may be moderated by higher interest rates and economic factors.
