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Zip Code 60712: Rising Home Values and Shifting Ownership Trends in Lincolnwood, Illinois
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 60712, located in Lincolnwood, Illinois, is a suburban area that has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the dynamic real estate landscape of this community.
The homeownership rate in zip code 60712 has shown a gradual decline from 2013 to 2022. In 2013, 88% of residents were homeowners, but by 2022, this figure had decreased to 83%. Interestingly, this trend coincided with an overall increase in average home prices. In 2013, the average home price was $315,699, which rose to $465,659 by 2022, representing a 47.5% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates in zip code 60712 remained relatively stable, ranging from 86% to 88%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in zip code 60712 has grown steadily, from 12% in 2013 to 17% in 2022. This increase in renters has been accompanied by a significant rise in average rent prices. In 2013, the average rent was $1,671, which increased to $2,312 by 2022, representing a 38.4% increase. The growth in both renter percentage and average rent prices suggests a growing demand for rental properties in the area, possibly driven by the rising home prices that may have priced out potential buyers.
Looking at the most recent data, the average home price in zip code 60712 reached $479,735 in 2023 and further increased to $492,436 in 2024. This represents a 5.8% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions and potentially influence the local real estate market in the coming years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 60712 will continue to rise, albeit at a potentially slower rate due to the higher interest rates. By 2029, average home prices could reach approximately $550,000 to $575,000. For average rent prices, the upward trend is expected to continue, potentially reaching $2,800 to $3,000 per month by 2029, assuming consistent growth patterns and economic conditions.
In summary, zip code 60712 has experienced a gradual shift from homeownership to renting over the past decade, driven by rising home prices and changing economic conditions. The inverse relationship between homeownership rates and average home prices, coupled with the impact of federal interest rates, highlights the complex dynamics of the local real estate market. As the community continues to evolve, these trends will likely shape the future of housing in Lincolnwood.
