When it comes to the great cities of America, it’s no secret that Chicago belongs near the top of the list.
After all, Chi-Town has a little bit of everything. In fact, they have the very best of a lot of things. From great music to world-class food, to some of the finest art galleries and museums found anywhere in the world.
Have you been thinking about moving to Chicago? If so, then there are a few things you should keep in mind about current Chicago real estate trends. Fortunately, you’ve come to the right place of insight into a tremendous city.
This article takes a look at the Chicago real estate market so that you can make the smartest investments possible. Keep reading to get the inside scoop.
One thing that is as true now as ever is the fact that single-family homes are in big demand. This is especially true of homes that are move-in ready.
This should come as no surprise, especially when you consider that Chicago is a great place to raise a family. The schools are tremendous, there are plenty of superb communities populated by homes at almost every income level, and the seasons offer something for every member of the family.
Multi-Family Real Estate
Another trend in Chicago real estate is the multi-family home market. Although the market has been rather saturated lately, the key is to understand the best types of properties to invest in.
For example, thousands of apartment units have reached the market in the last few years, many still with high rent rates, and yet vacancy rates remain relatively low. That means this might be a smart direction to consider, especially if you’re simply seeking an investment opportunity.
Keep in mind that the average rent in the city is up about 5% over last year, and continues to rise faster than most of the rest of the country.
Discover more about how to sell Chicago real estate fast.
This is a category of the Chicago real estate market that still accounts for a large number of the properties purchased in recent years. In fact, foreclosures in the segment are dropping overall.
It’s important to remember that distressed properties tend to be a strong investment regardless of the economy. After all, this type of property provides the opportunity to get in at a reasonable cost, renovate the property, and then either use it as a rental property or flip it for a profit.
The key to success with distressed properties is to have a keen eye for what to look for, understand what potential buyers might want, and the ability to keep renovation costs as low as possible.
Now let’s take a look at the state of luxury housing in the Chicago area. This can obviously be a bit tricky simply due to the fact that you’re dealing with a higher price point.
Chicago actually saw an impressive number of luxury sales during 2018, which caused a lot of excitement in the market, thus creating major expectations for the coming years. Best of all, median sales prices have continued to rise, showing no signs of slowing down.
The key to successful buying and selling luxury housing is to buy as low as possible so that you have room to price it competitively, or to be able to invest in the costs of the renovations that might be necessary to make the property appealing to potential buyers.
Just keep in mind that the luxury sector can be volatile, especially when the economy is down. It’s also important to remember that your customer base for this type of property will be significantly smaller than those looking to buy mid-priced homes.
What is the student housing market looking like in Chicago for 2021? That’s a great question. Let’s take a close look at what you can expect.
For starters, student housing rentals are always deeply impacted by student enrollment at local universities. Thus 2021 has already experienced a higher rate of vacancies than is typically the case at the start of the spring semester.
And yet Chicago is a great college town. With plenty of sports to enjoy, along with a thriving art community, this city is extremely appealing to young people wanting to get a quality higher education.
Because of concerns about COVID, this might actually be one of the best times to invest in student housing. After all, the situation is going to rapidly improve within the next 6 to 9 months, meaning students will be back in school and in need of a place to live.
This could be your chance to take advantage of low property prices as sellers seek opportunities to cut their losses after an admittedly rough 2020.
Now let’s take a look at mid-priced and mid-sized homes. This type of property is almost always the heart and soul of the real estate market in any area of the country. That’s because this market represents the working class in need of homes where they can raise a family.
In the coming year, expect demand to be higher than the supply of mid-priced homes, especially as the price of luxury homes continues to rise and inventory of mid-sized homes continues to be strained.
Million-Dollar West Loop Condos
The West Loop is an area of the city that’s experienced an eye-popping transformation in the past ten years, thanks to developers who’ve made significant investments, especially in condos priced at $1 million and up. Thus you can anticipate homes in this part of Chicago to continue to grow in popularity.
Mid-Century Modern Homes
It seems like buyers simply can’t get enough of mid-century modern homes in Chicago. This fact is as true now as it’s been over the past few decades. Especially in areas such as Glencoe, Long Grove, and Riverwoods.
A Guide to Chicago Real Estate Trends Every Investor Should Know About
Investing in the Chicago realty market doesn’t have to be complicated. Fortunately, this guide to Chicago real estate trends will help you understand where to invest your money.
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