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Zip Code 60487: High Homeownership and Rising Home Values in Tinley Park, 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 60487, located in Tinley Park, Illinois, is a predominantly owner-occupied area with a strong housing market. Over the past decade, this community has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 60487 has remained consistently high, ranging from 90% to 94% between 2013 and 2022. This stability in homeownership coincides with a general upward trend in average home prices. In 2013, the average home price was $230,273, which steadily increased to $341,637 by 2022, representing a 48.4% increase over this period. The most significant year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $277,677 to $309,760, a 11.6% rise.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 60487. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained stable at around 90-93%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates fluctuated slightly but remained high, suggesting a resilient local housing market. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership to 94%, likely due to more affordable financing options.
Renter percentages in zip code 60487 have remained relatively low, fluctuating between 6% and 9% from 2013 to 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $1,491, which decreased to $1,362 in 2015 before rising again to $1,600 in 2019. Interestingly, despite the low renter percentage, average rent prices have generally remained high, possibly due to limited rental inventory in this predominantly owner-occupied area. The population has remained relatively stable, with only minor fluctuations, suggesting that changes in rent prices are more likely influenced by market factors than population shifts.
In 2023, the average home price in zip code 60487 reached $352,553, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $364,278, with interest rates slightly higher at 5.33%. This sustained growth in home prices, even in the face of higher interest rates, indicates strong demand and a robust local housing market.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, driven by the limited rental inventory and the overall appreciation of property values in the area. However, the rate of increase for both home prices and rents may slow down if interest rates remain elevated, potentially affecting affordability and demand.
In summary, zip code 60487 demonstrates a stable, predominantly owner-occupied housing market with steadily increasing property values. The area has shown resilience to interest rate fluctuations, maintaining high homeownership rates even as average home prices have risen significantly. The rental market, while small, has seen variable but generally high rent prices, reflecting the limited supply of rental properties. As we move forward, the local real estate market is poised for continued growth, albeit potentially at a more measured pace due to higher interest rates and evolving economic conditions.
