You might expect glitzy neighborhoods, like the Gold Coast, to rank as the city’s most expensive. But comparing each ZIP code’s median home price to its median household income presents a surprising picture.
Utilizing data from Zillow and the U.S. Census, American Home Shield recently determined the home-price-to-household-income ratios for ZIP codes across Chicago. From there, the home warranty company used the ratios to rank the most and least expensive areas.
Coming in as the most affordable was 60661, which includes parts of the West Loop and Near West Side. There, homes are selling 2.3 times higher than the local annual income. That was followed by the ZIP code 60655 with a ratio of 2.73. That ZIP code includes the wealthy South Side neighborhood of Mount Greenwood.
Interestingly, the list of top 10 least expensive ZIP codes also included multiple areas within the Loop, as well as River North, the Near North Side, Boystown and Lakeview.
Meanwhile, at the other end of the scale is 60647: the predominant ZIP code in Logan Square. A home there now costs 5.3 times more than what the median local brings in. That was followed on the list by 60639, in the nearby Belmont Craigin neighborhood, with a ratio of 5.28.
The full list of the most and least expensive ZIP codes, according to American Home Shield, are included below.
So basically the zip codes on the right are becoming gentrified and are no longer affordable for the residents.