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Zip Code 60633: Rising Home Values and Shifting Ownership Trends in Chicago'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 60633, located in Chicago, Illinois, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, situated on the southeast side of Chicago, has seen fluctuations in its demographic and economic landscape, reflecting broader trends in urban housing markets. The homeownership rate in zip code 60633 has shown a gradual decline over the years, with some fluctuations. In 2013, the homeownership rate stood at 68%, but by 2022, it had decreased to 63%. This downward trend coincides with a significant increase in average home prices. In 2013, the average home price was $69,752, which rose steadily to reach $166,340 by 2022, representing a substantial 138% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code follows a general trend observed nationally. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate in the zip code remained relatively stable at 66% and 62%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate slightly increased to 63%, possibly due to buyers rushing to secure mortgages before further rate increases.
Renter percentages in zip code 60633 have shown an inverse relationship to homeownership rates, naturally increasing as ownership decreased. The renter-occupied percentage rose from 31% in 2013 to 37% in 2022. Interestingly, average rent prices have not shown a consistent upward trend in line with this increase. In 2013, the average rent was $892, which fluctuated over the years, reaching $964 in 2022. This represents only an 8% increase over the period, much less significant than the rise in home prices.
Looking at the most recent data, the average home price in zip code 60633 continued to rise in 2023, reaching $169,223. In 2024, it further increased to $177,601. This upward trend has persisted despite the sharp increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically be expected to cool the housing market, but the continued price growth suggests strong demand or limited supply in this area.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 60633 will likely continue to rise, albeit potentially at a slower rate due to higher interest rates. The average home price could reach approximately $200,000 by 2029. Rent prices may also see a moderate increase, potentially reaching around $1,100 per month on average. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 60633 has experienced a gradual shift towards more renter-occupied housing, coupled with a significant increase in average home prices. Despite fluctuations in federal interest rates, the housing market in this area has shown resilience, with continued price growth even in the face of recent rate hikes. The divergence between rapidly increasing home prices and more modestly rising rent costs suggests a complex interplay of factors influencing the local housing market.
