Chicago Housing Market Report & Trends
The Chicago housing market, as of September 2023, experienced notable shifts in home sales and median prices.
In September 2023, the number of statewide home sales in Illinois faced a significant drop. The total statewide home sales, which include single-family homes and condominiums, amounted to 11,483, marking a 17.4 percent decrease from the 13,900 homes sold in September 2022.
Simultaneously, the median home price in Illinois saw a substantial increase. The median price in September 2023 was $270,000, indicating a 6.5 percent rise compared to the previous year when it stood at $253,594.
Chicago Metro Area Housing Data
The Chicago Metro Area, comprising nine counties, also witnessed a downturn in home sales. In September 2023, a total of 7,608 homes were sold, reflecting an 18.6 percent decline from the 9,345 homes sold in September 2022.
The median home price in the Chicago Metro Area in September 2023 was $325,000, signifying a 6.6 percent increase from the previous year's median price of $305,000.
The city of Chicago itself saw a notable year-over-year decrease in home sales. In September 2023, 1,830 homes were sold, marking an 11.3 percent drop from the 2,064 homes sold in September 2022.
The median home price in the city of Chicago in September 2023 was $324,450, showing a modest 1.4 percent increase when compared to September 2022's median price of $320,000.
These statistics suggest that the Chicago housing market is currently experiencing a decline in home sales, particularly in the city of Chicago and the broader Chicago Metro Area. However, the median home prices are on the rise, indicating that the real estate market remains competitive.
Chicago Rent Prices 2023
The Zumper Chicago Metro Area Report analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. In the state of Illinois, the median rent for a one-bedroom apartment was $1,337 in the previous month, as per the Zumper report.
The Most Expensive Cities
Oak Park claimed the title of the most expensive city for renting, with one-bedroom apartments priced at $2,140.
Chicago secured the second position, where the rent for one-bedroom units averaged $2,100.
Lombard followed closely as the third most expensive city, with rents averaging $2,060 for one-bedroom apartments.
The Least Expensive Cities
Gary was the most affordable city for renters, with one-bedroom apartments priced at just $780.
Michigan City ranked second among the least expensive cities, with one-bedroom rent at $950.
Waukegan was the third least expensive city, where one-bedroom apartments had an average rent of $970.
The Fastest Growing Rents (Year-over-Year)
Oak Park experienced the most significant year-over-year rent growth, with a staggering 39.9% increase since the same time last year.
Lombard emerged as the second fastest-growing city in terms of rents, witnessing a 20.5% increase.
Chicago took the third spot, with a year-over-year rent growth of 15.4%.
The Fastest Growing Rents (Month-over-Month)
Lombard led in monthly rental growth, with a substantial 4.6% increase in rents.
Gary followed closely as the second fastest-growing city in terms of monthly rents, with a 4% climb.
Oak Park rounded out the top three, with a 1.4% increase in rents over the past month.
Chicago Housing Market Forecast 2023-2024
According to the market forecast presented by Stuart Handler from the Department of Real Estate at the University of Illinois Chicago, the sales forecast for August, September, and October suggests a decrease on a yearly and monthly basis for both Illinois and the Chicago PMSA.
Annually for Illinois, the three-month average forecasts point to a decrease in the range of -13.5% to -18.2%; the comparable figures for the Chicago PMSA are a decrease in the range of -18.4% to -24.9%. On a monthly basis, three-month average sales are forecast to decrease in the range of -3.3% to -4.5% for Illinois and decrease in the range of -6.7% to -9.0% for the Chicago PMSA.
The median price forecast indicates positive annual growth for August, September, and October in Illinois and the Chicago PMSA. In Illinois, the median price is forecast to be higher by 7.1% in August, 7.0% in September, and 7.9% in October relative to the same time last year. For the Chicago PMSA, the comparable figures are 6.8% in August, 5.9% in September, and 6.6% in October.
Chicago Housing Market Forecast by Zillow
The average Chicago-Naperville-Elgin home value is $306,012, up 2.4% over the past year and goes to pending in around 8 days. (Data through August 31, 2023).
Key Metrics:
1-year Market Forecast (August 31, 2023): This metric indicates a 2.6% projected change in the Chicago housing market over the next year, as of August 31, 2023. It offers insight into the expected direction of property values in the coming year.
Median sale to list ratio (July 31, 2023): The median sale to list ratio, recorded as 1.000 as of July 31, 2023, signifies that, on average, homes in the Chicago area are selling for their listed price. This metric is valuable for understanding the balance between listing prices and actual sale prices.
Percent of sales over list price (July 31, 2023): As of July 31, 2023, 50.4% of home sales in Chicago exceeded their list prices. This percentage indicates a competitive market where many buyers are willing to pay more than the initial asking price for properties.
Percent of sales under list price (July 31, 2023): In contrast, 35.4% of home sales in Chicago as of July 31, 2023, were transacted below the listed price. This metric suggests that while some properties sell above their list price, a significant portion still sell for less.
Median days to pending (August 31, 2023): The median time it takes for a property to go under contract or become “pending” is 8 days, as of August 31, 2023. This is an essential metric for understanding the pace of the housing market, indicating that properties are selling relatively quickly.
Chicago has witnessed significant changes in its neighborhoods since the year 2000. Here are the neighborhoods that have experienced the highest appreciation in terms of property values, according to Neighborhoodscout.
W Wabansia Ave / N Whipple St
Located in the heart of Chicago, the W Wabansia Ave / N Whipple St neighborhood has seen remarkable property value appreciation. This area's proximity to various amenities and its strong community appeal have contributed to its growth.
Humboldt Park Northeast
The Humboldt Park Northeast neighborhood has seen a steady increase in property values since 2000. The neighborhood's green spaces, cultural attractions, and improving infrastructure have made it an attractive destination for homebuyers and investors.
W Wabansia Ave / N Kimball Ave
This neighborhood, situated near W Wabansia Ave and N Kimball Ave, has experienced substantial property value appreciation. The presence of local businesses, parks, and good public transportation options has boosted its desirability among residents and investors.
Palmer Square East
Palmer Square East is another neighborhood that has seen significant appreciation in property values. Its charming streets, proximity to parks, and vibrant local scene have made it a sought-after area for both residents and real estate investors.
W Wabansia Ave / N Francisco Ave
The W Wabansia Ave / N Francisco Ave neighborhood has been on an upward trajectory in terms of property values. Its location and access to various amenities have attracted homebuyers and investors looking for long-term growth.
Logan Square Northwest
Logan Square Northwest is known for its thriving arts and dining scene. The neighborhood's cultural appeal, coupled with improved public services and transportation, has contributed to its property value appreciation.
W Cortland St / N Mozart St
W Cortland St / N Mozart St is a neighborhood that has experienced remarkable growth in property values. Its accessibility to urban conveniences and a sense of community have made it a desirable place to live and invest.
Palmer Square
Palmer Square, located in Chicago, has seen substantial property value appreciation. The neighborhood's green spaces, historic architecture, and community activities have made it a popular choice for homeowners and real estate investors.
Humboldt Park North
Humboldt Park North, with its green expanses and recreational opportunities, has seen a consistent increase in property values since 2000. The neighborhood's combination of natural beauty and urban amenities has attracted both residents and investors.
W Cortland St / N Albany Ave
W Cortland St / N Albany Ave is another Chicago neighborhood that has experienced substantial appreciation in property values. Its accessibility to city amenities and transportation options have bolstered its appeal to homebuyers and real estate investors.
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