The Most Expensive Zip Code In Chicago, Illinois Has An Average Home Value Above $500,000

Chicago is considered the most affordable of the three largest cities in the United States, with a lower cost of living and average home price than New York City and Los Angeles. However, not all of its neighborhoods reflect that trend. In fact, one zip code has quietly climbed to the top of the city's housing market. According to the Chicago Tribune, the 60622 zip code, which encompasses some of the city's most popular neighborhoods, including Wicker Park, West Town, Ukrainian Village and Humboldt Park, is now the most expensive place to buy a home in the city, with an average home price of $570,000.

This area stands in sharp contrast to the city's overall affordability, where the average home price is $315,000, according to Zillow. Instead, the 60622 area tells a different story, one of rising demand, limited housing supply, and ongoing gentrification that could be driving both popularity and soaring home values.

To understand what makes the 60622 stand out, it helps to understand how prices have evolved over the years. Home prices undoubtedly increase in value year over year, it's part of their appeal for individuals looking for a sound investment. However, according to the Cook Country House Price Index, home prices in the area that encompasses the 60622 have increased in value by over 243% since 2000. Meanwhile, home prices have only increased 163% across the city since 2000.

One major factor driving the 60622's housing boom is just how few homes are on the market. According to Redfin, the area is very competitive, which makes the limited supply more of an issue. The site reports that on average, homes sell for 2% above their list prices and are off the market in as little as 22 days. The combination of limited supply and high demand means buyers submit more offers, escalating home prices, and removing homes off the market a lot quicker than normal.

Besides the local real estate market, the 60622 neighborhoods are some of the most desirable places to live in, further adding to its demand. Areas like Wicker Park and Bucktown are known for their walkability, including a nearly three-mile elevated path for biking and walking, and a number of renowned restaurants, bars, and music venues. These features have drawn in young professionals, high-earning individuals, actors, and musicians looking for an enjoyable neighborhood that's still close to downtown.

Though the area is now seen as trendy and artsy, it wasn't always that way. Much of the 60622 zip code was once home to working-class and immigrant communities. But with the waves of redevelopment over the past decades, many longtime residents have been priced out as the areas transformed. Today many of the neighborhoods are filled with upscale condos, trendy grocery stores, and boutique shops, which have helped turn the 60622 zip code into one of Chicago's most competitive and high-priced real estate markets.