Chicago Real Estate Market Predictions for 2023
For those involved in the real estate arena in Chicago, such as purchasers and sellers, it is necessary to be familiar with the local market. If you do not have insight into the Chicago market for 2023, you could overlook chances, homes, and leads.
Chicago housing market forecast
Being located in the third most populated city in the United States, Chicago is a well-known destination for travelers. It is home to more than 60 museums and has a stunning skyline, despite its cold climate and strong winds.
The housing market in the Windy City is quite competitive, with lower than average home prices and a limited selection. It is currently a good time to purchase a property in Chicago, however, the lack of inventory is still beneficial for sellers. As of January 2023, the interest rates are between 6% and 7%, which makes it difficult for buyers to acquire a mortgage.
In terms of other real estate trends, the median list price is $329,000 and the median sold home price ranges from $285,000 to $296,500.
Chicago homes for sale
Rocket Homes registered around 9,299 homes are up for sale in Chicago. The housing inventory in the city has dropped by 12.5% in comparison with December 2021. During December 2022, there were 3,716 new listings on Zillow, which is a 34.6% less than in the previous year.
It is expected that the demand for properties will decrease in 2023, with offers varying from one to three per listing, compared to five to ten in the year before. For real estate agents as well as other vendors, the best time to receive higher bids for a home is in the spring. On average, homes take 77 days to be sold.
For buyers, although there is some scope for bargaining, it is not huge. The market still remains neutral and leans slightly towards the seller’s side.
Average rent in Chicago
The average monthly rent for a single-bedroom flat in Chicago has soared by 18% since 2022 and is currently at $1,875. Data from Zumper indicates that there are 2,427 rental apartments in the region. The ratio of houses that are occupied by renters to those occupied by buyers is 55% to 45%.
Chicago neighborhoods
With 2.7 million residents in the area, there are a vast array of neighborhoods in Chicago with something for everyone. Shopping, exquisite dining, and cultural attractions are all within reach in Chicago.
Lincoln Park
Just a mile from downtown and with a lakefront view, the Lincoln Park neighborhood is a highly desirable place to live. It is the 9th most walkable neighborhood in Chicago and is close to its namesake Lincoln Park, a massive space with 3.17 miles of greenery.
North Side and Gold Coast
The North Side and Gold Coast are for those looking for an elite and luxe experience. The neighborhood is small and exclusive and home to several landmarks and gorgeous mansions, such as the Magnificent Mile.
West Loop
West Loop is an ideal spot for both families and young professionals. It has a plethora of facilities and services of great quality, plus new structures are constantly emerging across the area. If you’re a fan of trying out different kinds of food, Restaurant Row has a lot of restaurants to offer. Moreover, West Loop has a walkability score of 96 and is near major highways and the airport.
West Town and Wicker Park
Calling all art and culture enthusiasts! West Town and Wicker Park both have plenty of street art, galleries, and other opportunities to appreciate Chicago’s cultural significance. With a Walk Score of 93, it is easily one of the most walkable areas in Chicago.
Chicago economy
Chicago is known for its abundance of employment options in the business, finance, transportation, pharmaceutical, and healthcare industries. The city is the home base for some major companies, like Deloitte, JPMorgan Chase, United Airlines, and Boeing.
However, the labor market is not as prosperous as in other cities. The unemployment rate stands at 11%, which is higher than the national standard of 8.7%. Furthermore, although the 2023 budget did not raise taxes, the property taxes remain extremely high. Additionally, the cost of living is considerably more expensive than the national average, being 22% higher.
