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Zip Code 60642: Rising Home Values and Ownership Trends in Chicago's Resilient Real Estate 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 60642, located in Chicago, Illinois, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a general trend of increasing property values and rental costs, with fluctuations in the balance between owners and renters.
The homeownership rate in zip code 60642 has remained relatively stable, with slight fluctuations between 34% and 38% from 2013 to 2022. Average home prices have shown a general upward trend during this period. In 2013, the average home price was $369,166, which increased to $512,681 by 2022, representing a 38.9% increase over nine years. Interestingly, the highest homeownership rate of 38% coincided with one of the highest average home prices in 2018 and 2019, at $486,955 and $487,554 respectively.
Federal interest rates have played a role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates in the zip code remained relatively stable at 36-37%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates actually increased slightly to 38%, possibly due to buyers rushing to secure mortgages before rates climbed further.
Renter percentages in zip code 60642 have fluctuated between 62% and 66% from 2013 to 2022. The average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,195, which increased to $2,053 by 2022, representing a substantial 71.8% increase. The population of the zip code also grew from 19,968 in 2013 to 22,462 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in zip code 60642 experienced a slight dip followed by a recovery. The average home price in 2023 was $504,224, a 1.6% decrease from 2022. However, in 2024, the average home price rebounded to $510,566, a 1.3% increase from 2023. Interestingly, this occurred despite the federal interest rate rising to 5.02% in 2023 and further to 5.33% in 2024, which are the highest rates since 2007.
Looking ahead, based on the historical data and current trends, we can forecast that average home prices in zip code 60642 may continue to rise moderately over the next five years, potentially reaching around $550,000 by 2029. Average rent prices are also likely to continue their upward trajectory, possibly exceeding $2,500 per month within the same timeframe. These projections assume continued population growth and economic stability in the area.
In summary, zip code 60642 has demonstrated resilience in its housing market, with steadily increasing average home and rent prices despite fluctuations in homeownership rates. The area has shown the ability to maintain property values and attract renters even in the face of rising interest rates, suggesting a strong local real estate market with potential for continued growth in the coming years.
