Inside the Chicago Real Estate : Trends, Opportunities, and Predictions for 2021

Chicago Real Estate Market

Welcome to the bustling world of Chicago’s real estate market! As an insider, I’ve seen firsthand how this dynamic market shifts and changes, reflecting the city’s vibrant economy and diverse neighborhoods. Whether you’re a first-time buyer, a seasoned investor, or simply curious about the Windy City’s property scene, you’re in the right place.

In this article, we’ll dive into the key trends and factors influencing Chicago’s real estate landscape. From high-rise condos in the Loop to charming bungalows in the North Side, there’s a story behind every sale. So, let’s embark on this journey together, and discover what makes Chicago’s real estate market truly unique.

Embarking further into the Chicago property scene, this section aims to illuminate the key aspects and recent trends. From primary determinants to recent market performance, let’s unravel and understand what sets Chicago’s real estate market apart.

Key Factors Shaping the Market

Delving into the nitty-gritty, certain elements distinctly highlight Chicago real estate’s uniqueness.

  • Population Growth: Chicago, known for its diverse neighborhoods, attracts inhabitants for different reasons. For instance, its cohesive community environment, and job opportunities significantly fuel the city’s population growth.
  • Economic Performance: Owing to its robust and diverse economy, Chicago’s real estate market remains steadfast. Sectors including finance, manufacturing, and technology serve as anchors and contribute substantially.
  • Public Infrastructure Projects: Development in terms of public infrastructure provides an uplift to real estate values. For instance, the expansion taking place at O’Hare International Airport boosts demand for nearby properties.
  • Housing Affordability: Compared to other major cities, Chicago’s housing market offers affordability which drives increased interest, especially from first-time buyers.


Performance of the Market in Recent Years

Turning our gaze to the recent past gives an illuminating view into Chicago’s real estate vibrancy.

  • Residential Market Performance: In the last couple of years, Chicago’s residential market has observed a steady rise. With predominant interest in the Loop’s high-rise condos and North Side’s charming bungalows, demand and prices have consistently marched upward.
  • Office Market Performance: The central city and some suburbs experienced a high occupancy rate in their office spaces. This signals a healthy demand from businesses, enhancing Chicago’s commercial real estate facet.
  • Rental Market Performance: Despite challenges, the rental market in Chicago has shown resilience. The city’s diverse neighborhoods and the vibrancy of its urban life continue to attract renters, indicating a robust rental market.

That’s a snapshot of the compelling narrative that is the Chicago real estate market. Scanning the key determinants and recent performance validates its dynamic, diverse, and resilient nature.


The Residential Market in Chicago

As I delve deeper, in this part of the article, the focus draws towards the heart of Chicago’s real estate market–the residential sector. This thriving hub bustles with unique charm, bringing in dynamics of its diverse neighborhoods and vibrant economy into play.

Current Trends in Housing Prices

To analyze the residential segment, it seems necessary to first look into the current trends in housing prices. In recent years, the housing prices in Chicago have noted a steady increase. For instance, real estate analytics firm Zillow indicates that the median housing price rose from $206,700 in March 2020 to $229,100 in March 2021—an elevation of over 11%.

Demand and Supply Factors

In terms of demand and supply factors influencing the market, there are several unique elements in play. For one, Chicago’s population growth directly contributes to the rising demand for residential units. As more people find their way to the city in search of better opportunities, the demand for homes follows suit. As the Illinois Association of Realtors reports, home sales in Chicago increased by nearly 16% year-over-year, from 2,402 sales in February 2020 to 2,785 in February 2021.

On the supply side, the number of new residential projects in the city has steadily increased but struggles to keep up with the surging demand. An Urban Institute study showed that between 2010 and 2017, there was only one unit of housing built for every two new households in Chicago.