Chicago is booming and investors are reaping the benefits
Real estate is all about location, location, location, and investors can certainly feel good about choosing to invest in locations in the Chicago metro area.
Just like Ohio, Chicago’s real estate market saw strong housing demand despite decreasing inventory during the pandemic. Median home prices increased, the number of homes listed for sale dropped, and the number of homes listed for sale dropped.
- The median home price increased 12.3% from $237,000 to $266,250 in 2020.
- The number of homes listed for sale dropped 36.8%.
- The average days on market fell from 48 days to 35 days in that same timeframe.
- Rental occupancy dropped from 94.2% to 91.5%, and rent amounts dropped 2.7% as well, but the overall rental market remained in the good range. but remained in the good range.
Despite seeing a decrease in multi-family permits, Chicago saw an increase in single-family permits. Statistics show that Chicago residents want single-family living in less dense suburban areas, which is mirroring the same national trend. This creates real estate investment opportunities across fix-and-flip, single-family rental, and new construction projects.
Notably, Chicago has a better return on investment for fix-and-flip as compared to the national average. The fix-and-flip market has seen returns that rival some of the most competitive markets in the country, giving investors a clear path to profit.
According to Attom Data Solutions, qualifying “metro areas with a population of at least 1 million where returns on investment increased most year-over-year were Dallas, TX (up 38 percent); San Antonio, TX (up 36 percent); San Diego, CA (up 20 percent); Chicago, IL (up 20 percent) and Oklahoma City, OK (up 18 percent).”
Market experts predict that Chicago’s housing market will remain hot in 2021. While inventory might be harder to find, real estate investors with strong strategies can still profit. So it’s more important than ever to have a real estate team that helps you close properties quickly and certainly, and run your construction or rehab projects smoothly. That’s what Lima One Capital provides to investors in Chicago and around the country. Get started today and let Lima One supercharge your investment success.