Chicago is one of the most populous cities in the United States. It’s home to some major attractions for individuals, families, and businesses. This includes schools like Northwestern University and the University of Chicago as well as several Fortune 500 companies like Kraft-Heinz and McDonald’s.
Because of this, the city is also home to some very interesting housing trends. Many cities have been impacted by the pandemic in several ways, including real estate, and Chicago is no exception.
If you’re interested in buying a home or getting into the real estate market in Chicago, it’s a good idea to stay on top of the trends. Read on to learn more about the current state of the Chicago real estate market!
Inventory and New Construction
In general, inventory in Chicago is slightly down, with only around 1.4 months’ worth of inventory currently in the city. This has recently caused home prices to increase dramatically, but this should only be a short-term problem.
New construction of Chicago houses is fortunately on the rise, according to the increased number of single-family housing permits and the architecture billings index. This will hopefully provide a solution to the inventory decrease within the next year.
Turnover rates for Chicago homes are currently incredibly high in the Chicago metro area, with houses turning over often in only a day or two.
The pandemic took unemployment rates to new heights in many cities, and Chicago is no exception. Unemployment is still high in Chicago, around 8.3% as of February 2021, but this is still a major improvement from the true apex of the pandemic.
This may not seem like a key factor, but the unemployment rate can, in fact, impact renters’ ability to pay. This can, in turn, affect the landlord’s ability to keep up with a mortgage.
Interest rates are also particularly low in Chicago at the moment, and they’ve stayed under 3% for several years at this point. The wave of demand in Chicago mirrors a nationwide trend, but there are even more factors drawing people into the city.
Chicago is a massively accessible city, with many bikeable and transit-friendly neighborhoods. Chicago also has several accessible suburbs surrounding the metro area. These might be better suited for accomodating a family depending on your price point.
Learning from the Chicago Real Estate Market
The Chicago real estate market, is particularly interesting right now, just as it is in the rest of the country. As real estate trends continue to change as the pandemic starts to slow down, it will be interesting to see how Chicago becomes more or less accessible to new homeowners.
While homes may currently be in high demand, it will be interesting to see how things continue to change.
Continue exploring the site to learn more about the current state of the real estate market!