As a real estate professional, home buyer, or seller in Chicago, it’s essential to know your local market. Without an understanding of Chicago’s market for 2023, you may miss out on potential leads, homes, or opportunities.
Chicago housing market forecast
Chicago is one of the largest cities in the nation (the 3rd largest, if you’re counting) and a massive global tourist attraction. With over 60 museums and a gorgeous skyline, it’s no wonder why people want to live in or near Chicago, even with cold weather and high winds.
The Chicago housing market is somewhat competitive, with slightly lower home prices and a low inventory of homes. While now is a better time to buy a home in Chicago, the low inventory still favors many sellers. As of January 2023, interest rates still sit around 6% to 7%, making any home purchase more difficult for a buyer, but it may decrease back down to the 4% range in the near future.
As for other Chicago housing market trends, the median home listing price is $329,000, and the median sold home price sits from $285,000 to $296,500.
Chicago homes for sale
Rocket Homes reports approximately 9,299 homes are on the market in Chicago.
The for-sale inventory in Chicago is down 12.5% compared to December 2021. There were 3,716 new listings in Chicago on Zillow in December 2022, which is down 34.6% to 2021.
Demand for homes will decrease in 2023, going from five to ten offers per listing to one to three. For real estate agents and other sellers, the best time to get higher offers on a home is in the spring. Homes spend an average of 77 days on the market.
For buyers, there is room to negotiate on listing prices, but nothing drastic. While it’s considered neutral, the market still tends to favor a seller.
Average rent in Chicago
For a one-bedroom apartment in Chicago, renters can expect to pay an average of $1,875 per month, an 18% increase since 2022.
According to Zumper, there are 2,427 apartments for rent in the Chicago area. Renter-occupied housing has a slight hold over buyer-occupied housing at 55% versus 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
Perfect for families and young professionals, West Loop is a highly walkable neighborhood with high-end amenities and new buildings popping up at every corner. If you love trying new food, there are tons of restaurants to visit on Restaurant Row. West Loop’s walkability is 96, and it has immediate access to 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’s job market has many opportunities in business, finance, transportation, pharmaceuticals, and healthcare opportunities. Deloitte, JPMorgan Chase, United Airlines, and Boeing all have headquarters in Chicago.
Even so, the job market is less healthy than in similar cities. The unemployment rate is 11% compared to the national average of 8.7%.
Property taxes are also extremely high despite the 2023 budget not including an increase. The cost of living is also astronomically high at 22% above the national average.
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