Market Conditions: Is Chicago the Hottest Market in America in 2026?
I’m having a hard time finding properties to crib about because the inventory remains at a record low and when something new does come on the market, it is often selling within days.
Crain’s Dennis Rodkin covered Chicago’s red hot market this week:
Within 48 hours of going up for sale last weekend, a two-bedroom condo on Cleveland Avenue in Lincoln Park received a dozen offers and went under contract.
“This market is wilder than ever,” said Shay Hata, the @properties Christie’s International Real Estate agent who represented the two-bedroom condo in the handsome 1920s building seen at the top of this story. The deal has not closed, and because the contract is contingent there’s a chance it won’t, but the flurry of offers suggests the condo will go for more than its $450,000 asking price.
This Lincoln Park condo was at the lower price point. But according to the article, homes listed over $1 million are also going under contract quickly in the city and suburbs.
“It’s kind of insane right now,” said Kim Brychel, an agent who’s also with @properties Christie’s. Her clients’ five-bedroom house on Leavitt Street in Lincoln Square hit the market at just under $1.7 million and was under contract six days later. The insanity, Brychel said, “is very stressful for buyers,” who have to jump like Jordan in order to score a purchase.
The article also had one agent commenting that some buyers are bringing Mom and Dad with them to the showings and that they are getting help on the down payment from their parents.
Is Chicago the hottest housing market in America in 2026?
Chicago homes fly off the market as ‘wild’ 2026 season gets underway [Crain’s Chicago Business, by Dennis Rodkin, February 19, 2026]
Dang, Sabrina, your house is gorgeous!
Not a hot market, just exceptionally low inventory and investor buyers driving up prices.
“investor buyers driving up prices.”
are investors really buying up SFHs and condos? not really seeing that at least in my neighborhood
“ are investors really buying up SFHs and condos?”
Hard to believe there are significant investor buyers for condos.
“Investors” (including, and perhaps mainly, developers) are definitely putting a floor under anything in a buildable lot in any decently desirable area.
Not river north. My condo is worth less than what I bought it for 10 years ago. Increased crime and a social shift to west loop crushed it.
Now looking for a townhouse in lincoln park and those prices skyrocketed as it’s one of the only nice, safe, well connected areas left unfortunately.
Check out the cuts on this neighbor of a recent CC feature:
https://www.redfin.com/IL/Chicago/2729-N-Hampden-Ct-60614/home/13368863
That’s the second $300k cut. First listed Nov 5th at $2.15m.
Unfortunately, the upcoming open houses for the two are not on the same day.
I’m not a permabear. I think markets going to turn south soon.
https://www.chicagobusiness.com/residential-real-estate/chicago-home-prices-flatten-out-sales-plunge-january/
Is this the whimper with which CC ends?
My place in River North is valued at least than I bought it for 8 years ago though. Lincoln Park where I want to buy a townhouse is now too expensive. Got utterly screwed as West Loop took over, crime increased, etc.
There is no inventory. Many current owners don’t want to sell and move up as they are stuck with their sub 3% rates. Current prices are still really high. Luxury rental options similar or better than many high end condos are plentiful without the long term commitment and down payment. Finally, a lot of high income workers don’t feel secure in employment so they are hesitant to take on the buying commitment financially.
I’ve been seeing a lot of current owners who would be moving up to larger homes deciding to renovate instead.
Ope, just went to the open house of my dream townhouse… dreams shattered. Several hundred people already showed up, I was in shock (and definitely the only one that divvyed there). Will sell at least $200K over asking. Said they had several offers in the first 30 minutes. Absolutely wild that river north is flat for 8 years and Lincoln Park has to be the hottest in the country. $1.2M for 2,200 sqft in a nearly 40 year old townhouse with $14K in RE taxes is wild. Guess, Florida is the only smart move. Same layout is $500K cheaper in FLL just a short bike to the beach, the weather is 10x better, no income tax, looking to axe RE taxes too.
https://www.redfin.com/IL/Chicago/2709-N-Janssen-Ave-60614/home/21813748
“Absolutely wild that river north is flat for 8 years”
It depends on where you are looking in River North. There’s no doubt it has struggled since the pandemic and the protests. Fulton Market and the West Loop has taken it’s “cool” factor now with lofts, restaurants and the like. Although Wells Street has really turned around in the last 3 years and is actually becoming quite a neighborhood hub.
Still need to get rid some of the nightclubs.
“Guess, Florida is the only smart move. Same layout is $500K cheaper in FLL just a short bike to the beach, the weather is 10x better, no income tax, looking to axe RE taxes too.”
Yep. For retirees, why would you stay in Illinois?
“Finally, a lot of high income workers don’t feel secure in employment so they are hesitant to take on the buying commitment financially.”
There are literally dozens of offers on properties in Chicago. Someone is feeling okay about their job prospects.
“Is this the whimper with which CC ends?”
Huh? I went on vacation but forgot to put up a post about it.
“I’m not a permabear. I think markets going to turn south soon.”
There’s still no inventory. I’d like to see an inventory rise first, before I’m willing to say things are going to go south.
But if layoffs pick up, prices may not go anywhere.
“Not river north. My condo is worth less than what I bought it for 10 years ago. Increased crime and a social shift to west loop crushed it.”
Agreed that River North has been “replaced” by the West Loop/Fulton Market. It’s no longer the hip or cool place. But I can see it evolving into something else. Wells is really picking up with local, neighborhood type restaurants and coffee shops. Nothing glamorous or what would attract tourists, but that’s a good thing. The area around the Avli is really delightful. Another new restaurant is going into the Chateau on Wells building (ha ha- love that name).
“Not a hot market, just exceptionally low inventory and investor buyers driving up prices.”
It’s hard to tell what’s going on because the inventory is so low it’s distorting everything. Developers are still building new condos but mostly small buildings. It’s not like the two new condo high rises are selling their units briskly. It’s taking them YEARS to sell out. In a truly “hot” market, the developers would be converting more of the apartment high rises into condos. We’re only seeing that sporadically.
But single family homes are pretty hot, citywide.