Three Reasons to Invest in Chicago Real Estate
The Chicago real estate market is showing some early signs of a slowdown, but it is still an excellent place to invest. Although it is skewed in favor of sellers, the renter market is strong. Here are some tips for savvy investors. First of all, you should be aware of the market’s skewed characteristics. In this article, we’ll discuss some of these characteristics and why the market remains favorable for sellers.
Chicago’s real estate market is showing early signs of slowing down
The Chicago real estate market may be slowing down, but the median price is still up four percent from May of last year. Monthly reports show that the number of homes sold is down, but that’s still up from last year. There is a lack of inventory in Chicago, which makes homes expensive, but construction of new homes is not keeping up with demand, either. As a result, the number of home sales could slow down even further.
Although June was a record-high month for home sales in the Chicagoland area, the median home price still increased by a healthy four percent. Prices in many neighborhoods are now approaching previous highs, and the inventory is declining quickly. In some neighborhoods, prices will drop soon. But it’s still early to tell if Chicago’s real estate market will slow down or continue growing at this pace.
It is skewed to sellers
If you are looking to buy a home in Chicago, you will likely find that it is a seller’s market. In fact, the market in Chicago is skewed toward sellers, and when inventory exceeds demand, the market can shift to a buyer’s market. The current imbalance in the Chicago housing market is causing home prices to be higher than they were last month. However, there is good news for buyers looking for a good deal.
The spring market is the time when buyers and sellers are most active. This is because spring is traditionally the season when house-hunting is at its peak. However, this isn’t a guarantee that this will remain the case. While the pendulum may swing either way, sellers have historically held the upper hand. So, if you are interested in buying a Chicago investment property, now may be the perfect time to buy.
It is a good place to invest
The Chicago real estate market offers investors a unique opportunity. The city is one of the largest in the country and home values are still recovering from the Great Recession. Additionally, the median price for homes is reasonable. This makes it a good place for investors to expand their portfolios. Here are three reasons to invest in Chicago real estate. It is an affordable city with a booming economy. You can live in the heart of the action or invest in a less expensive suburb.
Logan Square: The area’s rich history and ethnic diversity are apparent in its neighborhoods. This area encompasses 13 neighborhoods and has seen the highest price increase in the last three years, with a median price of $525,000. It also boasts excellent access to amenities and lakefront. The prices in Logan Square are reasonably priced, making it a great place to invest in Chicago real estate. In addition, Logan Square is home to the Chicago Symphony Orchestra, which performs concerts and performances throughout the year.
It is a strong renter market
The rental market has been showing some signs of life in the Chicago area in recent months, and is now back to its pre-pandemic levels of occupancy and rent growth. Renters are again feeling confident, and investor interest in multifamily properties is as strong as ever. Luxury apartment buildings routinely trade for big prices in the downtown core. And a number of companies have set up shop in the area, giving the renter market in Chicago a boost.
The Chicago rental market is not just for the working class anymore. More than 50% of the population rents their homes. This is great news for landlords, and it is a highly profitable niche for investors. Renters in Chicago aren’t just the working class anymore; the number of upper income households in Cook County has doubled in the past decade. That means there are a lot of high-end, luxury apartments for rent.
It is a boom-and-bust cycle
In the late nineteenth and early twentieth centuries, Chicago experienced a housing boom, with the development of high-rise apartment buildings, condominiums and townhouses. Suburban real estate expanded, too, with farmland being subdivided into substantial subdivisions. Even the abandoned Glenview Naval Air Station became a new community. These boom-and-bust cycles are not limited to Chicago, however.
Overbuilding in some sectors impeded new construction, especially downtown, while residential vacancy rates stayed low and were under 3 percent for the most part. The price of housing, however, stayed relatively stable at around one percent of inflation. In contrast to California, Texas, and other major cities, Chicago was relatively spared from the sharp real estate cycles of the 1980s. The housing market then fell into a recession, nine years after the previous boom.