The Chicago housing market is one of the fastest-growing markets in the country, and more and more people are looking to move into the city from their respective areas. When looking at the last quarter of 2022 and into the future in 2023, the Chicago housing market and the national market at large are expected to undergo some gradual changes.
Chicago Housing Market Trends
In the coming year, overall housing market prices in Chicago are expected to decline slightly but will remain positive for the fourth quarter of 2022 according to market forecasting. However, over the next twelve months forecasts project positive annual growth in 2023 for the state of Illinois as a whole with no decline in overall home values.
The average home price in the Chicagoland area in the third quarter of 2022 was $300,000, which was 3.2% higher compared to 2021. The Chicago Metro Area saw over 7,500 homes sold in the last month, which was however an overall 32% decrease from the same time last year.
In the city of Chicago itself, the median home price in October 2022 was $320,000, which increased 2.2% from $313,000 at the same time last year, with over 1,700 homes sold. In the next twelve months, median home prices are expected to grow consistently in their respective range.
Though annual growth was mixed for the Chicago real estate market as a whole over the past year, median home buying prices experienced consistent positive growth annually and monthly. Sales in Illinois as a whole retained positive growth.
Should I Buy a Home in Chicago?
The Chicago housing market is currently a balanced one, with an equal demand and supply for homes in the area. This means that it is neither a buyer nor seller’s market currently. However, if you’re looking to buy in the coming year, keep in mind that the housing boom in Chicago is on the decline due to steadily increasing home interest rates.
The average home in the area sold for just under 2% under asking prices throughout Chicago’s over 75 unique neighborhoods. Housing prices vary greatly from neighborhood to neighborhood but generally cater to a variety of budgets throughout the city.
Should I Rent a Home in Chicago?
The average rent in Chicago comes in at just under $1300 per month for a 1 bedroom apartment, with the high end of the spectrum coming in at around $2000. Chicago is experiencing fast-growing rental prices, with prices going up 22% since the fourth quarter of 2021. The neighboring suburb of Aurora experienced the second-highest increase in average rents, coming in at 21% higher on average than rental prices last year.
Chicago Real Estate Market 2023
In the coming year, the housing market in Chicago is projected to overall mimic that of last year, which makes it one of the hottest and fastest-growing markets in the country, especially for those looking to invest in rental properties. Since the fourth quarter of 2021, home values in the metro area at large have risen nearly 10% overall, and are only projected to drop around 1% in the coming year. This is compared to that of Illinois as a whole, where the average home value is expected to rise by 2%.
Overall, the Chicago housing market is mainly favorable toward those looking to invest in rental properties, as it has a strong and ever-growing renter market. Since over half of the population of Chicago rents instead of owning a home, this makes for a good opportunity for those interested in buying rental properties, especially since Chicago’s population continually increases gradually, even as it stands as the third most populated city in the country.
As one of the hottest real estate markets in the country, Chicagoland is a great place to move to for those looking to buy or rent a home for themselves, or for those looking to invest in property. Looking for the right moving company to assist you in your Chicago moving experience? See what Reebie Storage & Moving Co. can do for you and your household or business today. As the largest and most trusted Chicago moving company, we’ll give you the best possible full-service moving and storage experience from start to finish.