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Chicago, IL: Real Estate Market & Trends 2016

Chicago is among the largest and most desirable cities in the United States. Known for its illustrious architecture and culinary dishes, the Windy City also encompasses a growing real estate market that has rebounded significantly since the housing recession. The average price for a home in the Chicago real estate market in the first quarter of 2016 was $208,600; an increase of 8.4 percent from the previous year, and 2.3 percent better than the national average.

While the Chicago real estate market is not as healthy as it was just three short years ago, it does favor sellers much more so than buyers. The average Chicago home is worth approximately $218/sq. ft., according to Trulia, which represents a steady increase of six percent over the same period in 2015. However, the drawback of Chicago has been its unemployment rate. The current unemployment rate is 6.6 percent compared to the national average of 5.5 percent. Despite its current situation, the Chicago real estate market is on the right track and should continue to get better.

Chicago Real Estate Market Statistics:

Chicago real estate market infographic

The Chicago, IL real estate market continues to reward homeowners in the form of equity gains. Home equity gains in the last year for Chicago real estate were $19,331 compared to the national average of $15,781, while gains in the last three years have reached $57,828 compared to $49,356. For a more comprehensive breakdown of equity, refer to the following:

  • Homes purchased in the Chicago real estate market one year ago have appreciated, on average, by $19,331. The national average was $15,781 over the same period.
  • Homes purchased in the Chicago, IL housing market three years ago have appreciated, on average, by $57,828. The national average was $49,356 over the same period.
  • Homes purchased in the Chicago real estate market five years ago have appreciated, on average, by $65,469. The national average was $68,727 over the same period.
  • Homes purchased in the Chicago, IL housing market seven years ago have appreciated, on average, by $43,288. The national average was $59,758 over the same period.
  • Homes purchased in the Chicago real estate market nine years ago have appreciated, on average, by $24,772. The national average increased $16,435 over the same period.

Chicago Real Estate Market Summary:

Chicago real estate market update

  • Current Median Home Price: $208,600
  • 1-Year Appreciation Rate: 8.4%
  • 3-Year Appreciation Rate: 30.9%
  • Unemployment Rate: 6.6%
  • 1-Year Job Growth Rate: 1.8%
  • Population: 9,500,00
  • Median Household Income: $61,598

Chicago, IL: Real Estate Market (2016) — Q1 Updates:

Chicago market summaryA combination of factors have improved the Chicago real estate market in the first quarter of 2016. Home prices are now at $208,600, but the sweet spot for homeowners has been home appreciation, as gains in the Chicago market have risen 8.4 percent since last year. Another factor boosting real estate in Chicago is home affordability, which continues to rank near the top of the list. On average, homeowners paid 8.5 percent of their income on monthly mortgage payments while the national average paid 14.5 percent in the first quarter of 2016. That said, Chicago remains one of the top housing markets for residential redevelopment moving forward. 

One of the problems looming for many potential homebuyers, not just in Chicago, but across the nation, is inventory levels. The number of available homes is dramatically lower than previous years, and it’s ultimately driving home prices up while simultaneously fueling competition. In the last three years, home prices in Chicago have increased 30.9 percent compared to the national average of 22.6 percent. Conversely, new home construction in the Chicago real estate market is on the rise. The current level of construction is 21.2 percent above the long-term average, and has increased 1.7 percent in the first quarter of 2016.

Another issue affecting the Chicago real estate market is unemployment. Unemployment has increased 0.6 percent in the past year and is currently 1.6 percent higher than the national average of 5.0 percent. However, the one-year job growth rate is 1.8 percent compared to the national average. So things are beginning to pick up.

Moving forward, the Chicago real estate market is ready for sustained growth in sales and median home prices. With mortgage rates expected to remain low throughout the year, the real estate market in Chicago is primed for big things in 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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