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Zip Code 60647: Rising Home Values and Stable Ownership in Chicago's Vibrant Urban Area
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 60647, located in Chicago, Illinois, offers a dynamic urban landscape with a mix of residential and commercial areas. This vibrant neighborhood has experienced notable shifts in homeownership rates and housing costs over the past decade.
The ownership percentage in zip code 60647 has shown a gradual increase from 38% in 2013 to 40% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $334,345, which steadily climbed to $506,094 by 2022, representing a 51.4% increase over this period. The most substantial year-over-year growth occurred between 2013 and 2014, with a 14.9% jump from $334,345 to $384,118.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the steady increase in homeownership. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the growth in homeownership slowed, stabilizing at 39% from 2017 to 2021. The slight increase to 40% ownership in 2022, despite a higher interest rate of 1.68%, suggests other factors may have influenced buying decisions.
The renter percentage in zip code 60647 has inversely mirrored the homeownership trend, decreasing from 62% in 2013 to 60% in 2022. During this period, average rent prices have shown a consistent upward trajectory. In 2013, the average rent was $1,167, which increased to $1,431 by 2022, representing a 22.6% rise. The most significant year-over-year increase occurred between 2020 and 2021, with average rent jumping from $1,419 to $1,546, a 9% increase. This surge could be attributed to various factors, including changes in housing demand and overall economic conditions.
In 2023, the average home price in zip code 60647 experienced a slight decrease to $492,736, down 2.6% from the previous year. This dip coincided with a sharp increase in federal interest rates to 5.02%. Moving into 2024, we see a marginal recovery in average home prices to $496,152, while interest rates further increased to 5.33%. These higher interest rates may continue to impact homebuying decisions in the near future.
Looking ahead, our predictive models suggest a continued upward trend in both average home prices and rent prices over the next five years. Home prices are projected to increase at an average annual rate of 2-3%, potentially reaching around $550,000 by 2029. Rent prices are expected to grow at a similar pace, potentially surpassing $1,600 per month on average by the end of the five-year period.
In summary, zip code 60647 has demonstrated a gradual shift towards increased homeownership, coupled with substantial growth in both home values and rent prices. The interplay between federal interest rates, housing costs, and ownership trends highlights the complex dynamics of this urban real estate market. As the neighborhood continues to evolve, these trends will likely shape its demographic and economic landscape in the coming years.
