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Zip Code 60634: Rising Home Values and Ownership Trends in Chicago's Northwest Side
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 60634, located in Chicago, Illinois, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a steady increase in homeownership, coupled with significant growth in average home prices and fluctuating rent costs.
The ownership percentage in zip code 60634 has shown a consistent upward trend, rising from 70% in 2013 to 74% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $174,578, which grew steadily to reach $319,694 by 2022, representing an impressive 83% increase over this period. This correlation suggests that despite rising property values, more residents in this zip code have been able to transition into homeownership.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership increased from 70% to 72%. This trend aligns with the general principle that lower interest rates make mortgages more affordable, potentially encouraging homeownership. However, it's interesting to note that homeownership continued to rise even as interest rates increased in subsequent years, reaching 74% by 2022 when the federal interest rate was 1.68%.
Renter percentages in zip code 60634 have shown a gradual decline, decreasing from 28% in 2013 to 26% in 2022. This trend inversely mirrors the rise in homeownership. Average rent prices have experienced some fluctuations but generally trended upward. In 2013, the average rent was $1,139, which increased to $1,185 by 2018, before slightly decreasing to $1,155 in 2022. These changes in rent prices don't seem to have a direct correlation with the declining renter percentage, suggesting other factors, such as the increasing homeownership rate, may have more influence on the rental market in this area.
As of 2024, the average home price in zip code 60634 has reached $335,721, showing continued growth from the 2022 figure. This represents a 5% increase from 2022 to 2024. The federal interest rate in 2024 stands at 5.33%, which is significantly higher than the 1.68% rate in 2022. Despite this substantial increase in interest rates, home prices have continued to rise, indicating strong demand in this zip code.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 60634 may continue to increase over the next five years, potentially reaching around $380,000 by 2029. This projection assumes a continuation of the steady growth pattern observed in recent years. For rent prices, if the current stability persists, we might expect average rents to remain relatively steady, potentially reaching around $1,200 by 2029.
In summary, zip code 60634 has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The area has shown resilience in the face of changing interest rates, with home prices continuing to appreciate even as rates have increased. The rental market, while showing some fluctuations, has remained relatively stable. These trends suggest a strong and desirable residential area with potential for continued growth in the coming years.
