Chicago Investment Property for Sale - 2023 Rental Home Appreciation
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.
Chicago's Attractive Housing Market
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.
- Evanston: Evanston is located just north of Rogers Park and northeast of Jefferson Park along Lake Michigan. It offers new apartment buildings and historic single-family homes that are more affordable than other neighborhoods. According to Realtor.com, the median listing price is $407,500, and the median rent is $2,440/month, according to Realtor.com.
- Lake View: Lake View is located on Chicago’s north side along Lake Michigan, just east of Avondale. The neighborhood features single-family homes, apartment buildings, and other multi-family housing. The median listing price is $425,000, and the median rent is $1,800/month.
- Logan Square: Logan Square is located southwest of I-90, east of Bucktown/West Town and Lincoln Park. It’s a trendy, urban neighborhood where most Logan Square residents are renters. The median listing price is $519,000, and the median rent is $1,880/month.
- Pilsen: Pilsen is located close to Downtown Chicago just northeast of Chinatown. It has a rich Latino culture and was named by Forbes as one of the “12 Coolest Neighborhoods in the World.” Pilsen has lower home prices than many other areas, while rent is about the same. The median listing price in Pilsen is $362,500, and the median rent is $2,650/month.
- Wicker Park: Located southeast of Logan Square and northeast of Humboldt Park, Wicker Park is an artsy neighborhood with a suburban feel. It offers single-family homes, duplexes, and new apartment buildings. The median listing price in Wicker Park is $599,000, and the median rent is $2,650/month.
Rental Home Appreciation in Chicago
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%.
Economic Growth in Chicago
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.
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