We shall discuss the latest Chicago housing market trends and forecasts. Let's first take a look at the statewide data for May 2021. The market continues to grow in terms of sales and prices. The start of this summer season is looking good for sellers, with homes being purchased at premium prices. The Illinois housing market performed exceptionally in May with a huge surge in home sales and higher median prices, according to data released by Illinois REALTORS®.
In a seller's market, real estate prices increase. The statewide median price in May 2021 was $262,000, up 21.8 percent from $215,050 in May 2020. The median sales price is predicted to increase by 11.5% year-over-year in March & April. The strong buyer demand is driving prices in the Chicago metro area to all-time highs. Both median prices and sales experienced a positive annual change in the Chicago housing market as well.
The median home sale price was $310,000 in the Chicago Metro Area (it comprises the nine counties), an increase of 19.2 percent from $260,000 in May 2020. All these trends show that Chicago home prices are on the rise due to a very tight supply and low mortgage rates. Housing sales and prices are expected to continue their positive trends into the third quarter of 2021. More homebuyers would enter the bidding wars to scoop up their favorite deals.
Stronger buyer activity will continue with speedy sales and multiple offers leading to price gains. According to local realtors, median prices are expected to rise steadily in 2021, with a higher and broader range than in 2020. Year over year, Illinois will see home price gains ranging from 8.3 percent to 19.6 percent, while the Chicago PMSA will see home price gains ranging from 6.9 percent to 16.0 percent.
Table of Contents
Chicago Metro Housing Market Trends 2021 (Describes May)
Below is the latest report of the “Chicago Housing Market.” The source of this report is the Illinois REALTORS® and the counties included are Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will. The report compares the Chicago metro and the city's housing metrics from May 2021 with May 2020. The data from May shows the stark contrast of where it was last year when the COVID-19 stay-at-home order truly started to impact the Chicago real estate market.
In May, 12,768 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area, an astounding 63.5 percent increase from the 7,809 homes sold in May 2020. The median home sale price was $310,000, an increase of 19.2 percent from $260K in May 2020.
City of Chicago Housing market Trends 2021
The median price of a home in the city of Chicago in May 2021 was $351,000, up 12.1 percent compared to May 2020 when it was $313,000. Sales of both single-family homes and condos surged in May, up 97.4 percent from May 2020 sales. Months Supply of Inventory for the entire Chicago MSA is 1.4 months (down from 3.2 last year). If inventory levels are around 6 months, it is a balanced housing market.
Realtor.com's latest report shows that in May 2021, the median list price of homes in Chicago, IL was $347K, trending up 1.9% year-over-year. The median listing price per square foot was $265. The median sale price was $350K. Sale-to-List Price Ratio: 99.36, which measures how close homes are selling to their asking prices.
Chicago Real Estate Market Forecast 2021-2022 (New Projections)
The Chicago housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the United States. It is also one of the hottest real estate markets for investing in rental properties. What are the Chicago real estate market predictions for 2021-2022? In 2018, the Chicago real estate appreciation rate was running at about half the national rate; at a 3 percent range when the nation was at 6 percent. After cooling off, Chicago became the weakest housing market of 2019. The home prices grew by a mere 1.5 percent, lagging behind the nation.
Let us look at the price trends recorded by Zillow over the past few years. From 2011 to 2012, the prices declined continuously. Since 2013, Chicago home values have increased by around 56% (Zillow Home Value Index). As you can see in the graph, the Chicago housing market was weak in 2019, essentially flat, but prices have gone up 7.9% over the past year.
Similar growth has been recorded by NeighborhoodScout.com. Their data shows that over the last ten years the Chicago annual appreciation rate has been averaging at 3.19%. The cumulative appreciation rate over the ten years has been 36.88%. In the latest quarter, the property appreciation rate was 0.99%, which annualizes to a rate of 4.03%. This figure corroborates Zillow's forecast, which also predicts that home prices in this region are expected to increase over the next twelve months.
The price forecast presented by the University of Illinois to Illinois Realtors indicates positive annual growth for June, July, and August 2021 in both Illinois and the Chicago PMSA. In Illinois, the median price is predicted to increase by 21.8% in June, 15.2% in July, and 12.0% in August. For the Chicago PMSA, the comparable figures are 18.9% in June, 14.0% in July, and 11.2% in August.
The sales forecast for June, July, and August suggests an increase on a yearly basis and a monthly basis for both Illinois and the Chicago PMSA. Annually for Illinois, the three-month average forecasts point to an increase in the range of 10.7% to 14.5%; the comparative figures for the Chicago PMSA are an increase in the range of 14.4% to 19.5%. On a monthly basis, the three-month average sales are forecast to increase in the range of 3.5% to 4.8% for Illinois and increase in the range of 3.3% to 4.4% for the Chicago PMSA.
According to LittleBigHomes.com, the highest annual change in the value of houses was 21% in the twelve months ended with the 2nd Quarter of 1977. The worst annual change in home values in the Chicago Market was -11% in the twelve months ended with the 1st Quarter of 2010. The highest growth in home values in the Chicago MSA over a three-year period was 35% in the three years ended with the 2nd Quarter of 1989. The worst performance over a three-year period in the Chicago Market was -23% in the three years ended with the 2nd Quarter of 2011.
Here is Zillow's housing forecast for Chicago, Cook County, and Chicago MSA until May 2022. Chicago is expected to see strong home price gains in 2021. According to their forecast, the supply and demand dynamics will likely push prices north again over the next 12 months. The Chicago housing market will favors sellers over buyers.
- Chicago-Naperville-Elgin Metro home values have gone up 10.7% over the past year and Zillow predicts they will rise 12.4% over the next twelve months.
- Chicago home values have gone up 9.4% over the past year and will continue to rise over the next twelve months.
- Cook County home values have gone up 9.9% over the past year and will continue to rise over the next twelve months.
The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until May 2022.
These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? While many have lost jobs, making them ineligible for a home mortgage, some sellers have taken their homes off the market. As expected by many analysts, prices have declined much less than sales, and forecasts point to slightly positive price increases over the next few months in Chicago.
The Illinois Department of Employment Security (IDES) announced today that the unemployment rate remained at 7.1 percent, while nonfarm payrolls were down -7,900 in May, based on preliminary data provided by the U.S. Bureau of Labor Statistics (BLS). The April monthly change in payrolls was revised from the preliminary report, up slightly from +300 to +1,600 jobs. The April preliminary unemployment rate was unchanged from the preliminary report, remaining at 7.1 percent.
“Illinois is on the path to recovery, as evidenced by last week’s reopening of all sectors of the economy, and by steady improvements seen by key industries in monthly labor reports this year,” said DCEO Acting Director Sylvia Garcia.“
In May, the three industry sectors with the largest over-the-month gains in employment were: Leisure and Hospitality (+6,300), Manufacturing (+2,000), and Educational and Health Services (+1,900). The industry sectors that reported the largest monthly payroll declines were: Government (-10,000), Construction (-5,600), and Financial Activities (-1,300).
The good thing for the real estate industry is that it is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. Sellers, brokers, and homebuyers seem to be adjusting to restrictions imposed on the real estate industry because of the coronavirus pandemic.
Home sales have been climbing to the highest level in recent years as buyers moved quickly to snap up available homes amid historically low interest rates. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Chicago can become a buyer’s real estate market if the supply increases to more than five months of inventory.
And that’s not going to happen. This housing market is skewed to sellers due to a persistent imbalance in supply and demand. The sales & price forecasts for March, April, and May suggests an increase on a yearly and monthly basis for both Illinois and the Chicago PMSA.
For buyers in Chicago, the good news is that mortgage rates are still low. Most buyers are driven by record-low mortgage rates, are eager to get into an increasingly competitive market to find their dream home. More home sellers are listing their properties on the market. So what does that mean? Buyers have more options, and rates are insanely low.
Unless they have personal or financial reasons to hold off, now is a great time to buy a property in the Chicago housing market. With sales prices up and interest rates still low, buyers who are on the fence should make their move. Currently, the inventory remains relatively higher in the city of Chicago. Buyers may be in a better position to negotiate a deal and bring that seller down to a more workable price. In fact, it is the right time to buy and sell in this market.
Please do not make any real estate or financial decisions based solely on the information found within this article. Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Many variables could potentially impact the value of a home in Chicago in 2021 (or any other market) and some of these variables are impossible to predict in advance. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control.
Impact of COVID-19 on The Chicago Housing Market
We shall now do a quick recap of the impact of the pandemic on the Chicago housing market. The median home price in Chicago rose 9.2% year-over-year to $338,500 in April. The rolling 12-month median, which considers the whole year of sales up until April 30th, was $299,900, up 4.3 percent. The City of Chicago saw 2,039 homes sell in April – a steep 21.4% drop since last April. The impact of the COVID-19 pandemic was evident in April and May, driving Chicago home sales and inventory lower even though median prices remained pretty much stable.
Data from the Chicago Association of Realtors showed fewer buyers were willing to purchase a home from late March through mid-April. Roughly 330 residential properties went into contract in each of the three weeks before April 18 compared to 674 homes that went into contract for the week ending March 7, before the falloff. New listings also declined by almost 50 percent. 588 homes hit the market in each of the three weeks before April 18. That compared to 1,313 new listings that went on the market in the first week of March.
COVID-19 and a stay-at-home order continued to have a significant effect on the Chicago housing market in May, disrupting spring home sales and driving down available inventory for buyers. Home sales in May declined at a steeper rate than in April. However, the median price of homes sold was higher than the corresponding period in 2019. May 2020 data from Illinois REALTORS® shows that in the nine-county Chicago Metro Area, home sales (single-family and condominiums) there was a sharp decline in closed sales and inventory due to stay at home orders.
The Chicago housing market ended 2020 strong with December and year-end jumps in sales and median prices. In Dec 2020, 10,530 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area, a 32.0 percent increase from the 7,976 homes sold in December 2019. Year-end 2020 home sales totaled 120,256, up 8.8 percent from 110,523 homes sold in the region in 2019. The median home sale price in December 2020 was $266,250 in the Chicago Metro Area, an increase of 12.3 percent from $237,000 in December 2019. The year-end 2020 median price reached $268,000, up 8.1 percent from $248,000 in 2019.
In the city of Chicago, home sales (single-family and condominiums) in December 2020 totaled 2,220 homes sold, up 17.3 percent from December 2019 sales of 1,892 homes. Year-end 2020 home sales totaled 25,999, down 0.8 percent from 26,217 homes sold in 2019. The median price of a home in Chicago in December 2020 was $307,500, up 11.4 percent compared to December 2019 when it was $276,000. The year-end 2020 median price reached $316,000, up 7.1 percent from $295,000 in 2019.
Illinois Housing Market Statistics (Describes 2020 Year-to-Date)
In 2020, home sales totaled 172,394, up 9.6 percent from 157,268 in 2019. The year-end 2020 median price reached $225,000, up 7.7 percent from $209,000 in 2019. Months Supply of Inventory in 2020 was 2.0, a decline of – 44.4% from the previous year. In the Metro Chicago Housing Market, which comprises the nine counties, the number of homes sold in the metro area during the year rose by 8.8 percent in 2020, to 120,256 sales. That’s the highest since 2012, according to the Illinois Realtors market report released in December.
Months Supply of Inventory in 2020 for the metro area was 1.8, a decline of – 45.5% from the previous year. This shows that it was a strong seller's market in 2020. A seller's market arises when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. With continued record low interest rates, there's an increase in demand for properties as indicated by the year-over-year increase in closed sales of all properties.
The median home sale price in December 2020 was $266,250 in the Chicago Metro Area, an increase of 12.3 percent from $237,000 in December 2019. The year-end 2020 median price reached $268,000, up 8.1 percent from $248,000 in 2019. In the City of Chicago, the year-end 2020 median price reached $316,000, up 7.1 percent from $295,000 in 2019.
Chicago Real Estate Foreclosure Trends
Here are some of the foreclosure statistics of the Chicago real estate market. In August 2020, there were 2,996 properties in Chicago, IL that were in some stage of foreclosure (default, auction, or bank-owned) while the number of homes listed for sale on RealtyTrac is 6,918. The number of properties that received a foreclosure filing in Chicago, IL was 6% lower than the previous month and 88% lower than the same time last year.
In May 2021, for the Chicago PMSA, the percentage of foreclosed sales (e.g. REOs) among the total sales was 3.1%. 12,333 regular sales were made, 72.5% more than last year. 340 foreclosed properties were sold, 42.2% less than last year. The median price was $315,000 for regular property sales, up 17.5% from last year; the comparable figure for the foreclosed properties was $235,000, up 22.4% from this time last year.
The Top 5 areas in Chicago having the highest foreclosure rates (Data by RealtyTrac)
The zip code with the highest foreclosure rate is 60652, where 1 in every 2330 housing units is foreclosed. So, you’d find a lot of distressed sellers in this area and get some discounted off-market deals.
- 60652 – 1 in every 2330 housing units
- 60617 – 1 in every 3100 housing units
- 60624 – 1 in every 3159 housing units
- 60619 – 1 in every 3257 housing units
- 60637 – 1 in every 3488 housing units
Chicago Real Estate Investment: Should You Invest in Chicago?
Is Chicago a Good Place Real Estate Investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead. We have already discussed the Chicago housing market 2020 forecast for answers on why to put resources into this market. Chicago is a strong renter's market. Over 50% of the population rents in this city. Chicago is the 6th most walkable city in the nation. Chicago metro area has a population of approximately 8,865,000, a 0.03% increase from 2019. It is the most populous city in the U.S. state of Illinois, and the third-most-populous city in the United States.
Chicago has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom large apartment complexes are the most common housing units in Chicago. Other types of housing that are prevalent in Chicago include single-family detached homes, duplexes, rowhouses, and homes converted to apartments. Single-family detached homes account for roughly 25.98% of Chicago's housing units.
Chicago has been one of the hottest real estate markets in the country for many years. In the past ten years, the annual Chicago real estate appreciation rate has amounted to 4.40%, according to NeighborhoodScout.com. Chicago metropolitan area or Chicagoland is an area that includes the city of Chicago and its suburbs. So if you buy a Chicago real estate investment to use as a rental property, you could benefit in this market.
Although the recent population loss has been a concern for real estate investors, Chicago is still the most populous city in the Midwestern United States. About three million people live in Chicago and another ten million in the surrounding metro area. Chicago MSA is the third-largest metropolitan area in the U.S. It has a large population, a diverse economy, and a stable market. It is home to 32 Fortune 500 companies, with very high private sector employment.
Chicago's 58 million domestic and international visitors in 2018 made it the second most visited city in the nation, as compared with New York City's 65 million visitors in 2018. These are just some of the highlights that make Chicago a great place to live and invest in real estate. The list can go on and on. Chicago is also a major world financial center, having the second-largest central business district in the United States.
| Top Reasons To Invest In The Chicago Real Estate Market? | |
|
|
Let’s take a look at the number of positive things going on in the Chicago real estate market which can help investors who are keen to buy an investment property in this city.
Chicago Rental Market Is Very Strong
What makes Chicago such a hot market for rental real estate? Over 50% of the population rents. The large population of renters means that rental income for properties is far better than you’d see if you invested elsewhere in the country. Luxury Rentals Are a Profitable Niche in Chicago. Many people know that there are solid blue-collar areas with high rents, but it isn’t just the working class that rents townhomes and condos. According to Crain’s, the number of upper-income households in Cook County that rent has nearly doubled over the past ten years.
The Institute for Housing Studies at DePaul University found that the number of rental households among those earning at least $132,000 a year nearly doubled, while those earning $80,000 to $132,000 saw the number of renting households increase by just over 50%. Chicago has a booming supply of high-end rentals, especially luxury apartments downtown. Home prices in the Chicago area are low compared to regional income.
Yet economic uncertainty and shifts in the employment market are leaving many who want to live in a single-family home unable to afford to buy one. This is causing many to rent single-family homes instead. Crain’s last year's April report found that the hottest areas for detached single-family homes were in Calumet Heights, Gage Park, and West Ridge. However, home prices are low compared to rents almost everywhere in the Chicago metropolitan area.
The workforce in Chicago is shifting from high-paying but slow-to-no growth manufacturing jobs to lower-paying and less stable retail, business services, and healthcare jobs. This is causing many who would have been able to afford a middle-class home to rent apartments instead. Crain’s last year's April report stated that the hottest Chicago markets for condos and townhomes were Grand Boulevard, Kenwood, and Lincoln Square.
Chicago Rental Prices Trends
As of July 5, 2021, the average rent for a 1-bedroom apartment in Chicago, IL is currently $1,400. This is a 7% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Chicago decreased by -2% to $1,025. The average rent for a 1-bedroom apartment decreased by -2% to $1,400, and the average rent for a 2-bedroom apartment decreased by -2% to $1,715.
- Two-bedroom apartment rents average $1,715 (a 5% decrease from last year).
- Three-bedroom apartment rents average $2,250 (a 2% increase from last year).
- Four-bedroom apartment rents average $2,935 (an 8% decrease from last year).
53% of the households in Chicago, IL are renter-occupied while 48% are owner-occupied. The most expensive neighborhoods in Chicago are River West, Streeterville, and River North.
The most affordable neighborhoods where the rent prices are below the average Chicago rent:
- Austin
- The Island
- Cottage Grove Heights
- Fernwood
- Longwood Manor
- Princeton Park
The Zumper Chicago Metro Area Report analyzed active listings in May 2021 across 8 metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Illinois one-bedroom median rent was $1,128 last month. Schaumburg was the most expensive city with one-bedrooms priced at $1,450 while Aurora was the most affordable city with one-bedrooms priced at $1,100.
The Fastest Growing (Y/Y%)
- Aurora had the fastest-growing rent, up 14.6% since this time last year.
- Schaumburg saw rent climb 6.6%, making it the second-fastest-growing.
- Naperville was third with rent increasing 2.4%
The Fastest Growing (M/M%)
- Schaumburg had the largest monthly rental growth rate, up 5.1%.
- Naperville saw rent increase 4.9% last month, making it second.
- Arlington Heights was third with rent jumping 4.7%.
Chicago Real Estate Prices Are Reasonable
Because households at all income levels choose to rent instead of buy, they are reducing demand for houses for sale, slowing the rise in home prices. This also explains why housing prices haven’t skyrocketed despite the limited supply. Chicago’s inventory of homes for sale is very tight. Both attached and detached single-family home inventory has been declining since 2012.
At the end of 2017, potential buyers in Chicago had about five thousand fewer properties on the market to select from than if they’d been shopping at the end of 2016. This contributed to homes closing five days faster than the year before. If you start shopping for rental real estate, you could find something and rent it out.
Chicago’s real estate market has been one of the slowest to recover since the housing bubble burst at the start of the Great Recession. Home prices were 19% below their pre-crash levels in 2017, and they aren’t expected to hit peak values yet. This means that the Chicago real estate market is likely going to continue its slow, upward market trend.
Chicago Rehabbed Homes Are Readily Available
Chicago is seeing a surge in fully renovated single-family homes. The Chicago Association of Realtors’ data found that most of the strong suburbs are on the south side of Chicago, and this is where many homes are being rehabbed and sold. Calumet Heights is in this category; a quarter of properties sold were either rehabbed or candidates for rehabilitation. These properties are ideal for investors who want to buy a property to rent out.
Chicago's Job Growth Keeps People Coming
Chicago is not only home to several corporate headquarters; there has been a recent trend of companies moving their headquarters to Chicago as well. The steady increase in jobs has contributed to a slow but steady increase in rents. Many businesses are attracted by Chicago’s labor pool, the largest in the nation. As these businesses move into the area and attract relocating professionals, many are forced to rent because they can’t find houses fast enough in the areas they want to live in or simply choose to rent upon relocation in one of the luxury apartments downtown.
The Chicago metropolitan area is made up of four metropolitan divisions—separately identifiable employment centers within the larger metropolitan area. In the greater Chicago metropolitan area, education and health services had the largest employment gain from November 2018 to November 2019, adding 15,600 jobs. The Chicago area’s 2.1-percent rate of job growth in education and health services was lower than the nationwide advance of 2.9 percent.
Chicago’s government supersector added 10,800 jobs from November 2018 to November 2019. Local job growth was concentrated in educational services, which added 10,600 jobs. The 2.0-percent increase in Chicago’s government employment compared to a gain of 0.7 percent nationally. The churn also keeps people renting in Chicago. Chicago’s unemployment rate has gone up while dropping in other cities as jobs shift from Chicago to the suburbs. This economic uncertainty keeps many who can afford to buy a home renting. It also keeps the rental market itself strong, since many want to remain free to follow their jobs as required.
Where to Invest in Chicago Real Estate Market?
In Chicago, arts and culture abound at top institutions like The Art Institute. Although the winters can test anyone's resolve, Chicago summers are among the best in the world, with things to do every weekend, outdoor festivals, and Lake Michigan at your doorstep. Chicago has an incredibly deep pool of potential renters at all levels of the market. Several factors guarantee that they’re not going to turn into new home buyers any time soon.
Chicago real estate market is a prime destination for investors who would like to buy where the ROI is going to be high and likely to improve over time. It won't be long before Chicago makes you feel right at home. Good cash flow from Chicago rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Chicago in a growing neighborhood would be key to your success.
When looking for the best real estate investments in Chicago, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Chicago might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.
There are 76 neighborhoods in Chicago. Lincoln Park has a median listing price of $649.9K, making it the most expensive neighborhood. Auburn Gresham is the most affordable neighborhood, with a median listing price of $189.9K (on Realtor.com).
Some of the popular neighborhoods in Chicago, Illinois are Near North Side, Lakeview, West Town, Andersonville, South Loop, Bronzeville, Norridge, Logan Square, Old Town, Wicker Park, Bridgeport, Irving Park, Norwood Park, Bucktown, West Loop, and Hyde Park.
Chicago's North Side is the city's most densely populated residential section. For $200,000 price, you can purchase properties with one or two bedrooms and one or two baths. Chicago's West Side is home to the University of Illinois at Chicago. With a $200,000 budget, you can buy condos that typically offer one to two bedrooms and one or two baths.
You can buy Chicago investment properties in the Pilsen neighborhood. Pilsen is a great area for those who want a diverse portfolio of investment properties without having to run all over the city. Pilsen is located on Chicago’s Lower West Side. It features a mix of condos, apartment buildings, and single-family homes. The area is suburban enough to attract families. Its schools are a C+, which is close to the Chicago average. Parks and other amenities explain why Niche.com gave the area a B- for families.
CHECK OUT → Best Neighborhoods in Chicago Where You Can Buy Investment Properties.
Humboldt Park is another good neighborhood to buy investment properties in Chicago. The home prices in Humboldt Park peaked in 2006 but fell dramatically during the Great Recession. Home prices here hit a record low in 2012. Humboldt’s housing prices are on the rise again, though they remain below their 2006 peak. The average home price is around 300,000 dollars, while rents are around 1700 dollars a month. The area is notable for the number of foreclosed and distressed properties available to investors, and this helps pull the average rental rate down.
Highest Appreciating Chicago Neighborhoods Since 2000 (By Neighborhoodscout.com)
- N Whipple St / W Bloomingdale Ave
- N Campbell Ave / W Fullerton Ave
- W Diversey Ave / N Pulaski Rd
- W Armitage Ave / N Whipple St
- N California Ave / W Wabansia Ave
- N Francisco Ave / W Bloomingdale Ave
- N California Ave / N Milwaukee Ave
- N Maplewood Ave / W Wabansia Ave
- N California Ave / W Division St
- W Armitage Ave / N California Ave
Illinois is in the midwestern United States. Surrounding states are Wisconsin to the north, Iowa and Missouri to the west, Kentucky to the south, and Indiana to the east. Illinois also borders Michigan, but only via a northeastern water boundary in Lake Michigan.
Apart from the Chicago real estate market, you can also invest in the housing market of Indianapolis. The median sales price in Indiana saw a year-over-year increase of 9.7 percent to $170,000. Not surprising is the fact that Indianapolis house prices are also on the rise in the year 2020. Demand is still outpacing the supply, the new construction is slow, and competition for quality homes remains tough.
Like most cities nationwide, Indianapolis has experienced real estate appreciation over the last couple of years. The real estate appreciation rate in Indianapolis in the last quarter was around 0.81%, which amounts to an annual rate of 3.3%. However, it is quite unclear whether the rate of appreciation would remain steady or not due to the short-term effects of the ongoing pandemic.
Economic uncertainty might hold back sales volume for a short period in 2020. Most housing analysts expect Indianapolis house prices to remain flat or drop by a small fraction for the remainder of the year 2020.
If you head towards the west of Illinois, you should consider investing in Kansas City, MO. There is probably no hotter market right now than Kansas City, Missouri. A large, prosperous, self-sufficient, and culturally rich city, it is no wonder why it has seen a continuous rise in its employment, directly impacting the local real estate.
The Kansas City real estate market is very hot and in many ways the envy of housing pundits on both coasts. It is the largest city in the U.S. state of Missouri, famous for its distinct barbeque cuisine and jazz heritage. Also nicknamed the City of Fountains, Kansas City is now emerging as a growing market for real estate investments. High demand and low inventory are driving up both home prices and the speed of home sales in the Kansas City Housing Market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Chicago.
Consult with one of the investment counselors who can help build you a custom portfolio of Chicago turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Chicago.
Not just limited to Chicago or Illinois but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Chicago turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Let us know which real estate markets in the United States you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
REFERENCES
Market Prices, Trends & Forecasts
https://www.illinoisrealtors.org/marketstats/
https://chicagorealtor.com/may-2021-market-snapshot/
https://www.zillow.com/chicago-il/home-values
https://www.illinoisrealtors.org/wp-content/uploads/2020/12/Annual_forecast_2021.pdf
https://www.neighborhoodscout.com/il/chicago/real-estate
https://www.realtor.com/realestateandhomes-search/Chicago_IL/overview
https://www.forbes.com/sites/ingowinzer/2016/05/25/should-you-invest-in-chicago-real-estate/#64c07e3c2ad1
http://www.chicagobusiness.com/realestate/20171221/CRED0701/171229976/2018-real-estate-forecast-foggy-lukewarm
Housing Price Forecasts Illinois and Chicago PMSA, August 2020
https://www.illinoisrealtors.org/wp-content/uploads/2020/08/Forecasts_August_2020.pdf
Upper household rental rates
http://www.chicagobusiness.com/realestate/20180411/CRED0701/180419970/more-upper-income-households-renting-in-chicago-area
Housing inventory numbers
http://www.chicagonow.com/getting-real/2018/04/chicago-real-estate-market-worst-home-sales-decline-in-20-months/
2016 to 2017 housing inventory decline data
http://www.chicagotribune.com/business/ct-biz-chicago-home-sales-supply-20180124-story.html
Labor pool stats
https://www.homeunion.com/real-estate-investment-locations/chicago-illinois/
Trump’s Tax Plan Makes Many Reluctant to Buy
http://www.chicagobusiness.com/realestate/20171221/CRED0701/171229976/2018-real-estate-forecast-foggy-lukewarm
Foreclosures
https://www.realtytrac.com/statsandtrends/il/cook-county/chicago/
Crain’s April real estate report
http://www.chicagobusiness.com/realestate/20180419/CRED0701/180419837/heres-where-the-real-estate-market-has-been-hottest-in-2018
