In case you haven't heard, Chicago has one of the hottest rental markets in the country right now. And thanks to both Chicago and its suburbs having a relatively balanced real estate market, along with the projection of local home prices steadily rising in 2020, the next 12 months could also be a great time for real estate investors too.
According to new data from Zillow, the latest quarter reflects appreciation rates in Chicago have been hovering around 1.3% and continuing to hold steady. If this level of appreciation remains, the annualized appreciation rate would be around 5.2%, which could result in major real estate investment opportunities throughout all of Chicago along with even more interest from investors.
Chicago is currently deemed a seller’s market, which typically means housing demand largely outweighs current supply. Looking ahead to the rest of 2020, projections have home prices increasing by a minimum of 0.7%, although there's still plenty of room for an even bigger jump.
The same report indicates that to close 2019, the median price of current listings in Chicago was nearly $325,000 and the median price of homes sold out was over $270,000. Chicago is an ideal market for investors with the supreme demand from interested buyers, and also due to the fact that over 50% of the population rents. The large volume of renters means that rental income for properties is far higher for the owners than if they invested in property in another city. All indications suggest that Investing in Chicago rental units will result in excellent long term returns as the home prices in Chicago have been trending up year-over-year since 2015.
Since 2015 the average home price across Chicago has increased from $201,000 to $241,500.