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Zip Code 60643: Average Home Values and Ownership Trends in Chicago's Diverse Neighborhood
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 60643, located in Chicago, Illinois, has experienced fluctuating trends in homeownership, average home prices, and average rent prices over the past decade. This area, known for its diverse neighborhoods and rich history, has seen interesting shifts in its real estate market dynamics.
The homeownership rate in zip code 60643 has shown a slight downward trend from 2013 to 2022. In 2013, the ownership rate was 76%, which gradually decreased to 74% by 2022. Concurrently, average home prices in the area have demonstrated a general upward trajectory. In 2013, the average home price was $125,892, which increased to $222,541 by 2022, representing a significant 76.8% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the homeownership rate in zip code 60643 remained relatively stable at around 75-76%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership rates to 74-75%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 60643 have shown a modest increase from 24% in 2013 to 26% in 2022, inversely mirroring the slight decline in homeownership rates. Average rent prices have also experienced an overall upward trend, rising from $1,136 in 2013 to $1,189 in 2022, an increase of about 4.7%. Notably, there was a significant jump in average rent to $1,379 in 2021, possibly influenced by the changing housing market dynamics during the COVID-19 pandemic. The population in the zip code has remained relatively stable, fluctuating between 47,000 and 50,000 residents, which suggests that the increase in renters and rent prices may be more influenced by economic factors and housing market conditions rather than significant population changes.
Looking at the most recent data, average home prices in zip code 60643 reached $214,346 in 2023 and slightly decreased to $214,224 in 2024. This represents a 3.7% decrease from the 2022 average price of $222,541, possibly indicating a cooling in the housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may contribute to the stabilization or slight decrease in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60643 may continue to experience moderate growth, albeit at a slower pace than seen in recent years. This projection is based on the historical upward trend and the current market conditions. Average rent prices are expected to follow a similar pattern, with potential for steady increases over the next five years, influenced by factors such as inflation, housing demand, and overall economic conditions in the Chicago area.
In summary, zip code 60643 has experienced a gradual decrease in homeownership rates alongside substantial increases in average home prices over the past decade. Renter percentages have slightly increased, with average rent prices showing modest growth overall. The recent stabilization in home prices, coupled with rising interest rates, suggests a potential shift in the local real estate market dynamics. These trends reflect the complex interplay between economic factors, housing affordability, and changing demographics in this Chicago neighborhood.
