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Zip Code 60565: Rising Home Values Amid Stable Ownership in Naperville's Resilient Housing Market
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 60565, located in Naperville, Illinois, is a vibrant suburban area known for its excellent schools and high quality of life. This area has maintained a consistently high rate of homeownership, hovering around 88-89% throughout the past decade. Average home prices have shown a steady upward trend, while average rent prices have experienced significant fluctuations.
The homeownership rate in zip code 60565 has remained remarkably stable, ranging from 88% to 89% between 2013 and 2022. This stability in homeownership coincides with a general upward trend in average home prices. For instance, the average home price increased from $343,764 in 2013 to $494,868 in 2022, representing a substantial 44% increase over this period. The most significant annual jump occurred between 2020 and 2021, with average home prices rising from $410,028 to $449,093, a 9.5% increase in a single year.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to maintaining the high homeownership levels in the zip code by making mortgages more affordable. For example, in 2020, when the federal interest rate dropped to 0.38% from 2.16% in 2019, the homeownership rate held steady at 88%, despite the economic uncertainties of that year.
The renter population in zip code 60565 has remained relatively small, fluctuating between 10% and 12% from 2013 to 2022. Average rent prices, however, have shown more volatility than homeownership rates or home prices. In 2013, the average rent was $1,412, which decreased slightly to $1,374 in 2015. Then, a sharp increase occurred, with average rent rising to $1,838 in 2017 and peaking at $1,969 in 2021, representing a 39.4% increase from 2013 to 2021. This trend in rent prices doesn't directly correlate with the slight fluctuations in the renter population, suggesting other factors such as overall housing demand and local economic conditions may be influencing rent prices.
Looking at the most recent data, the average home price in zip code 60565 reached $520,426 in 2023 and further increased to $555,506 in 2024. This represents a significant 12.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60565 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $650,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $2,200 per month in the same timeframe, assuming current economic conditions and housing demand persist.
In summary, zip code 60565 in Naperville, Illinois, has maintained a consistently high rate of homeownership despite rising home prices. The area has seen significant growth in both home values and rent prices over the past decade, with recent years showing accelerated increases. While homeownership rates have remained stable, the sharp rise in both home prices and interest rates in 2023 and 2024 may influence future housing market dynamics in this desirable suburban location.
