Located in northeastern Illinois on the southwestern shores of Lake Michigan, Chicago is the third-most crowded city in the United States and the fifth-most crowded city in North America. Chicago city has been called by many nicknames, but it is mostly known as the “Windy City.” The city was rated as one of the most balanced economies in the United States, and this was due to its high level of diversification. Today, the Chicago city is recognized as the fourth-most important business center in the world. Interested in investing in the Chicago real estate market in 2021? Candea Development talks about the real estate trends that are currently going on in the Windy City. Since Chicago has seen a rise in real estate prices and a lower-than-average job growth, this might not seem like a good place to invest in real estate just yet.
According to Candea Development, the housing market trends show that the Chicago real estate market prices are still affordable.
- In the Chicago neighborhoods where Real Wealth members invest, the median purchase price was only about $130,000 in 2020, which estimates around 49% more affordable than the national average.
- This shows us that real estate in Chicago is still more affordable than many other areas in the United States. In the surrounding areas where Real Wealth members are investing, property values are even more affordable.
The Chicago rental income is strong.
- In the neighborhoods where Real Wealth members invest, average homes rent for a median $1,600 per month, which is around 1.23% of the $130,000 median purchase price. This is about 81% higher than the national average.
- This shows us that, in some Chicago neighborhoods, there is a solid opportunity to generate cash flow at a significantly higher rent-to-purchase ratio than many cities across the nation today.
Chicago offers equity growth potential.
- Since 2010, Chicago’s population decreased by 0.13%. During the same time, the national population grew by about 6%.
- In the past year Chicago lost over around 330,000 jobs due to COVID-19, which calculated to be an annual job loss rate of 7%. This is just above the U.S. annual job loss rate of 6%. This shows that Chicago’s diverse economy is keeping the job market somewhat stable.
Markets everywhere are still trying to come back from the Covid-19 pandemic. Businesses all over the world have suffered a loss in money. In the real estate market prices have risen for potential buyers, but for the seller’s profit is looking good.