Chicago is considered a “gateway” real estate market. Gateway markets are regarded as top-tier markets by real estate investors because of their population, desirability, and economic health. As a result, Chicago real estate is considered a stable and safe investment.
The “Windy City” is the third largest city in the U.S. The Chicago Metro Area has a population of approximately 9 million and is steadily growing.
Why is Chicago growing? Desirability and economic health.
Chicago is more affordable to live in than other major cities like Los Angeles and New York. It has a robust public transportation system, the world’s sixth busiest airport, and the Port of Chicago. Chicago is also home to 10 Fortune 500 companies with projected annual job growth of 4%.
Chicago presents an excellent opportunity for real estate investors looking to break into a gateway market to earn rental income and increase cash flow.
Whether you’re looking to invest in new construction, turnkey buildings, historic single-family homes, or multi-family housing in a neighborhood with a suburban feel, Chicago’s got it all.
There are 77 community areas, or neighborhoods, in Chicago, Illinois. The best neighborhoods for real estate investors and property managers include Evanston, Lake View, Logan Square, Pilsen, and Wicker Park.
Affordability plus a strong renter’s market make a Chicago home a great investment opportunity.
According to a recent Zillow report, Chicago home values are increasing at record rates. It’s also more affordable to buy a home in Chicago than in Los Angeles and New York.
Despite its affordability, Chicago has a strong renter market. A brief from the Chicago Metropolitan Agency for Planning states that 55% of Chicago homes are renter-occupied, with an occupancy rate of 94.5%.
Chicago’s economy has been and continues to be very stable. Economists predict Chicago will see a job growth rate of 4.4% and a GDP growth rate of 4.3% this year.
Chicago is home to the second-largest business district in the U.S. It’s also a global financial center and a central manufacturing hub. Other notable industries include transportation, information technology, and health services.
Several large corporations are headquartered in the Chicago Metro Area. The top three are Walgreens, McDonald’s, and Boeing.
Chicago’s largest employers are the U.S. government, Chicago Public Schools, and the City of Chicago. These industries and employers sustain Chicago’s economic growth.