If you are looking to understand Chicago real estate in 2021, you are not alone. Chicago is rapidly emerging as one of the hottest real estate markets in the country, driven by a booming economy, a wide range of housing options, and a growing cachet as a place to be for young professionals. Chicago home prices have, in many neighborhoods, risen steadily over the past year.
Whether you are a homeowner in Chicago looking to sell or are looking to buy in Chicago for the first time, being able to understand the shifts that are driving Chicago property trends is absolutely crucial. For this, you have come to the right place. Read on to find out everything you need to know about Chicago real estate in 2021.
Average Home Prices Are On the Rise
If you are looking to sell a home in Chicago, the first thing you should know is that prices are rising fast. In the past five years alone, Chicago home prices have risen by a staggering 23%, outstripping virtually every other housing market in the country. In addition, real estate experts predict that in the next 12 months, the average cost of a Chicago house will rise by another 10.4%.
This means that Chicago, despite the current economic turmoil, remains one of the few major cities in America where it is still very much a seller’s market. If you are looking to buy a home in Chicago, you are advised to do so quickly, so that you can make the most of future price increases.
Chicago Real Estate Is Attracting Wealthier Clients
Chicago has always attracted a wide diversity of home buyers. With some of the best universities in the country and no shortage of affordable inner-city and suburban markets, people of all incomes have been able to buy in Chicago. However, there has been an unmistakable tilt towards wealthier clients in recent years.
Prime neighborhoods such as the ritzy Lincoln Park or Streeterville have seen prices skyrocket and demand far outstrip supply in recent years. This has partly been driven by an influx of high-paying tech jobs and a booming business economy. This trend will continue to drive prices upward in prime neighborhoods for the foreseeable future.
The Suburbs Are Hotter Than Ever
It should come as no surprise that, in Chicago as well as elsewhere, the suburbs are undergoing a renaissance. While much of the past decade has seen hip, inner-city areas in America attract the greatest demand, a great shift is underway. Due to the events of the past year, people are seeking outdoor space and plenty of room to work from home, and they are willing to pay a premium for it.
This trend can be seen dramatically in Chicago, where home prices for leafy suburban areas such as Clarendon Hills and Buffalo Grove have skyrocketed, while once-trendy inner-city areas such as The Loop and Bucktown have seen prices stagnate or even fall. People want the excitement of Chicago with the space of the suburbs and are more than happy to shell out serious cash for the privilege.
You Can Sell Your Home Quickly in Chicago
These Chicago home buying trends should tell you that, if you want to sell a house in the city, you will not have to wait long. The average time from listing to selling a house has dropped to just 30 days, a near-record low. If you wish to sell your home in even less time, there are ways to do so.
If you do not have the money or time to spend on costly renovations and just want to sell your Chicago home, you can do so. Certain companies in Chicago allow you to sell a house as is, without having to complete any renovations or hire a realtor. With Chicago’s real estate market looking hotter than ever, you may be able to sell your house in just a few days for a good price.
Chicago Is Increasingly Popular with Retiree Buyers
This one might come as a surprise, given the Windy City’s reputation for freezing cold winters and its hectic lifestyle. However, the numbers have shown that increasing numbers of retirees are looking to put down roots in Chicago, with many choosing to move into the heart of the city center.
Much of this is due to Chicago’s excellent hospitals and amenities, as well as a perfectly-functioning public transport system that allows elderly residents to access any service that they need to without a car. Chicago’s close proximity to the Canadian border, where many elderly Americans may cross in order to access cheaper healthcare and prescriptions, has also proven to be a major selling point.
Investing in Rental Properties is Popular
With increasing numbers of young, higher-income, people and families making a home in Chicago, the rental market in the city is more robust than it has been in years. Rents have been rising even faster than median home prices, meaning that opportunities for property investors are growing.
If you invest in a Chicago rental property today, you could see significant returns over the next five years. As long as you pay close attention to the up-and-coming neighborhoods and understand what high-income renters are looking for in Chicago, you could make a very profitable business out of renting properties out in the Windy City.
The Lakefront is Still the Prime Hotspot
Finally, it is worth imparting one final, implacable piece of wisdom about Chicago real estate. Despite all of the seismic shifts that are currently taking place in the real estate market, there is no getting around the fact that properties overlooking Lake Michigan remain the hottest, most expensive, and most coveted in the city, just as they have done for the past 100 years.
Streeterville, the Gold Coast, and Park West remain the priciest neighborhoods to buy in Chicago, as well as the safest, most well-connected, and amenity-laden places in the city. If you can bag a lakefront property in Chicago, you are set for life.
Your Essential Real Estate Questions, Answered
If this article helped to answer your questions about Chicago real estate, it is time to learn more. To keep updated on 2021’s real estate trends and understand what you can do to improve the value of your home, make sure to check out our expert Home and Home Decor guides today.