One of the questions we get asked the most by our clients is “Will the market crash again soon?” While market fluctuations are inevitable, experts forecast a stable and steady growth trajectory for Chicago's real estate sector. The city’s robust economy offers a solid foundation for real estate growth, and Chicagoland's diverse employment opportunities attract a constant stream of residents to the city and surrounding suburbs, supporting the demand for housing and preventing drastic market downturns.
Supply and demand dynamics play a crucial role in shaping any real estate market, and Chicagoland is no exception. Over the past few years and continuing into this year, the area has experienced a shortage of housing inventory, leading to increased competition among buyers and rising property prices.
Limited housing supply can be attributed to various factors, including a lack of large-scale new construction projects like condo towers (new-build single-family homes now come in the form of 3- to 6-unit walk-up buildings with price tags typically above what the first-time buyer can afford), stricter lending regulations, and the conversion of older condo buildings into rentals to fuel the increased demand for apartments, which removes single-family homes from the inventory supply. Most of the new construction that has happened post-recession is apartments, which has helped to create a generation of renters. As a result, buyers should anticipate a competitive market and may need to act swiftly when a desirable property becomes available.
Another prediction and now notable trend for 2023 is the growing influence of young homebuyers in the Chicago real estate market. Millennials and Gen Zs are increasingly entering the housing market, and their preferences are reshaping the city's real estate landscape. Neighborhoods like Logan Square have increased in value over the past 10 years, and buyers are always looking for the next up-and-coming neighborhood where they can buy low and sell high once the neighborhood becomes trendy. The Crotty Group is predicting that Uptown, Rogers Park, and other farther north neighborhoods will be the next up-and-coming spots based on factors like existing infrastructure, access to transportation, and entertainment (or as we like to think of it, “Target, Mariano’s, Gym”).
Trying to predict what’s to come can be stressful, but when it comes to Chicago real estate, you can rest assured that we are on track for steady growth year over year, and there’s no market crash in sight. Prices will continue to increase steadily, so now is as good a time as any to buy or sell. Our team of real estate advisors at The Crotty Group can help you price your home correctly to sell or find the perfect spot to buy by keeping abreast of market trends and both recent and historical data. We’re predicting that we’ll still be correct at the end of the year!