Bringing You Home | January 2025
Chicago: A Look at 2024...
And the Opportunity Ahead
Illinois, Connecticut and New Jersey share the distinction of ending 2024 with the lowest number of homes for sale in the country. Crain’s Chicago Business recently reported findings showing that inventory levels across the nation were 16 percent less, on average, in December 2024 than in December 2019. In Illinois, there were 59 percent fewer homes on the market.
Recent data show us faring better on price. Prior to the Covid-era housing boom, the price growth of homes across Chicagoland was running at about half the nation’s, but, over the last year, local prices have eclipsed national average increases by nearly double. In the most recent recorded period of November 2024, home prices were up 7.8 percent across the metro area and 13 percent in the city from November 2023, compared to the nationwide median price increase of 4.7 percent.
Many states that experienced skyrocketing prices during the pandemic, such as Arizona, Florida and Texas, are now seeing softening prices as inventory levels normalize.
A Deeper Look at Chicago Prices
Broad-sweeping averages often differ with local market realities as anyone selling a condo in the city’s core can attest. In general, market segments where there are more buyers who perceived greater value reaped the gains. A cursory five-year review of Chicago condo and home prices crystallizes this point:
The Opportunity
The devil is in the details of Chicago’s market performance and opportunities. A city draped in diverse neighborhoods and market nuances. On the north side, entry-level and turnkey homes are in high demand and hard to find, which has been driving pricing. While there are existential challenges in the city center, the condo market is burdened with dated inventory, antiquated buildings and high assessments, which are suppressing buyer demand.
Fill the great, unrealized need for newer offerings with modern features and more moderate prices—condos and townhomes that appeal to Chicago’s large base of young, educated, working professionals and empty nesters seeking turnkey lock-and-leave options. A Renaissance is awaiting Chicago’s housing market if public, civic and business factions could come together to realize it.