2024 Chicago IL Real Estate Trends & Key IL Market Statistics
- Home prices in Chicago saw an 8.6% year-over-year increase by December 2023, reaching a median of $323,000.
- The market experienced a slight decrease in homes for sale by 3.2% in December 2023 compared to November 2023.
- Property transactions in March 2023 fell by 24.1% from the previous year, with median sales price dropping slightly by 2.9%.
- Average rental prices in Chicago rose to $2,215 for a 750 sq. ft apartment, marking a 17% increase from the previous year.
- The median rent for a single BR apartment in Illinois was $1,289.
- Property tax rates for single-family homes in Chicago averaged around 6.697%, with bills varying between $2,500 and $6,388.
- Suburban areas faced higher tax rates, averaging between 9.938% and 13.068%.
- Home price appreciation in Chicago has been slower than other cities, with a 10-year annual rate of 4.88%.
- January 2023 saw a 34% rise in permit activity for multifamily markets.
- Chicago metro area inventory stood at 4.29 months in January 2024
- Specific neighborhoods like Lake View and Lincoln Park witnessed significant shifts, including a 33.1% decrease in new listings and a 38.1% fall in inventory for Lake View.
Home Sale Prices and Inventory Trends
- Price Increases: Median home prices in Chicago saw an 8.6% year-over-year increase by December 2023, reaching a median of $323,000. Moreover, specific neighborhoods like Lake View and Lincoln Park witnessed significant shifts, including a 27.2% increase in Lake View for detached single-family homes and a 20.7% increase in Lincoln Park.
- Inventory Dynamics: Specific neighborhoods experienced sharp declines in inventory, with Lake View seeing a 38.1% drop and Lincoln Square a 37.9% reduction. This market contraction indicates quicker sales despite fewer listings, particularly in areas like Logan Square and The Loop.
Rental Market Insights
- Average Property Rental Prices: The average rent payment in Chicago rose to $2,215 for a 750 sq. ft apartment, marking a significant 17% increase from the previous year. Oak Park led with a 6.1% month-over-month rent increase, showcasing the rental market’s responsiveness to economic conditions.
Market Projections and Economic Factors
- 2024 Forecasts: The Chicago real estate market is expected to continue its growth trend into 2024, with median price projections indicating an 8.4% increase for Illinois and a 12.0% increase for the Chicago PMSA by December 2024.
- Interest Rates and Buyer Behavior: The overarching expectation for 2024 suggests a cautious approach to interest rates. While a potential decrease is anticipated, the Federal Reserve may adopt a gradual, measured approach, continuing to influence buyer behavior.
Taxation and Affordability
- Property Tax Rates: Property tax rates in Chicago averaged around 6.697% for single-family homes, with suburban areas facing higher rates, averaging between 9.938% and 13.068%.
Regional Variances and Future Growth
- Sales and Growth Forecasts: Despite overall negative trends in sales, certain areas within Illinois are forecasted to experience positive annual growth. For instance, Rockford should see minimal changes in sales, indicating a unique stability in this market area.
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More Key Chicago Illinois Real Estate Stats 2024-2023
- Median sales prices in various neighborhoods increased considerably, with Lake View’s detached single-family homes rising by 27.2%.
- Logan Square experienced a 77.1% increase in the median sales price for detached single-family homes.
- The Loop’s median sales price for attached single-family units increased by 5.7%.
- Median home prices in Illinois are on an upward trend, with a 9.5% increase in November 2023.
- Rental market dynamics show Oak Park leading with a 6.1% month-over-month rent increase.
- Chicago’s real estate market is expected to continue its growth trend into 2024, particularly for rental properties.
- Median price projections for December 2024 predict increases of 8.4% for Illinois and 12.0% for the Chicago PMSA.
- The sales outlook for 2024 anticipates negative growth trends, with most months expecting declines.
- The average home value in the Chicago-Naperville-Elgin area was $300,549 as of December 31, 2023.
- Zillow forecasts a moderate 1.6% increase in the housing market by the end of 2023.
- Lake View’s inventory reduction highlights a tightening market, with quicker sales despite fewer listings.
- Lincoln Square’s housing market contraction is evident from a significant reduction in inventory and new listings.
- Near North Side saw an increase in closed sales of attached single-family units by 11.0%.
- North Center’s median sales price for detached single-family homes jumped significantly, indicating a strong demand.
- The Loop experienced declines in new listings, closed sales, and inventory yet saw an increase in median sales price.
- The Illinois housing market forecast for Q4 2023 anticipates a robust median price increase of 8.6%.
The data and trends observed in the Chicago, IL, real estate market for 2023, with projections into 2024, offer significant insights for home sellers and property investors. The market has demonstrated notable dynamics, such as home price appreciation, inventory shrinkage, and alterations in the rental sector, alongside broader economic influences like interest rates and property taxes.
For home sellers in IL, these trends highlight the critical nature of timing and market readiness. The increase in median home prices and the inventory contraction suggest a seller’s market, where demand outstrips supply. Sellers can capitalize on this by setting competitive prices that reflect the current market conditions, potentially leading to quicker sales at favorable prices. Understanding local market dynamics cannot be overstated, as it directly influences sales strategies and outcomes.
Property investors in Illinois should take note of the rental market’s robust performance, particularly the significant increases in rental prices in certain neighborhoods. This indicates strong demand for rental properties, suggesting that investment in rental housing could yield positive returns.
Economic factors such as interest rate forecasts and property tax rates are crucial for sellers and investors. The anticipation of cautious interest rate adjustments implies that mortgage affordability could continue influencing buyer activity. Understanding the impact of economic conditions on investment returns is vital for investors, as these factors can affect rental yields and property appreciation rates.
The Chicago real estate market’s current state and future outlook present challenges and opportunities for local home sellers and property investors. Success in this market requires a well-informed approach, considering the unique market trends, economic factors, and local dynamics. Staying abreast of these developments and strategically positioning oneself can lead to successful sales and investment outcomes in Chicago’s vibrant real estate landscape.
Cited Sources
- https://www.noradarealestate.com/blog/chicago-real-estate-market/
- https://abc7chicago.com/chicago-real-estate-market-news-investment/14193382/
- https://www.houzeo.com/blog/illinois-real-estate-market/
- https://www.rockethomes.com/real-estate-trends/il/chicago
- https://www.axios.com/local/chicago/2023/12/16/2024-real-estate-housing-predictions-chicago
- https://wgntv.com/news/chicago-news/home-prices-predicted-to-fall-in-multiple-us-cities-what-about-chicago/
- https://www.noradarealestate.com/blog/illinois-housing-market/
- https://www.gardilaw.com/where-is-the-illinois-real-estate-market-headed-in-2024/
- https://wgntv.com/news/chicago-news/home-prices-predicted-to-fall-in-multiple-us-cities-what-about-chicago/
- https://chicagoagentmagazine.com/2023/12/04/2024-real-estate-sales-predictions/
