Market Conditions: How Low Will Inventory Go in Chicago?
It’s still a seller’s market in Chicago as inventory remains near record lows.
One of the reasons new posts have been sporadic is because there really isn’t much coming on to talk about.
Statewide, in May, it looks like inventory jumped 15% year-over-year but we’ll see when the IAR puts out the data in a few weeks. The 15% number is coming from some national housing data firms.
In April, inventory had fallen in the city of Chicago again. Nearly every month, just when I think it can’t go any lower, it does.
April is during the spring selling season, when more homes usually come on the market.
In April 2025, inventory declined 12.2% from the prior year.
Here’s the comparison the last few years since I started tracking it:
- April 2021: 8,502
- April 2022: 6,681
- April 2023: 4,964
- April 2024: 4,652
- April 2025: 4,085
Meanwhile, sales also remain low so it’s a double whammy of low inventory and low sales.
Will we see inventory go under 4,000 this summer?
Anyone have any tales from the front lines in terms of how tough it is to actually buy a property right now?
According to Redfin, there are just 194 homes available in Lakeview right now. This is a dense neighborhood. That isn’t even one new apartment building.
What are people doing?
No one wants to talk about the low inventory? Okay- I guess I will.
It’s so tight that even if you have $2 million, and want to buy a SFH, you have few choices.
Why aren’t more people listing? Because they can’t find anything to move to if they do? Because they might move to the suburbs and there’s nothing available out there either?
Anyone know if remodeling companies are busy because people are stuck in place?
I think there are a few things that might be happening…..
I think there is a lot of financial and political uncertainty in the city – so people who have invested quite a bit in their places don’t want to take a loss so they are not listing until things “stabilize” or things become clearer……
Also, a lot of owners DO realize that the suburbs are exploding right now – (houses which sold for 1.2-1.4 million in 2019 are selling like “hotcakes” for 2.1-2.4 million with bidding wars…so these city folk are confused as to why their condo which they paid 500k in 2018 is now worth 520k….
I live in both the city and suburbs so I hear city people mention things like this all time – I’m also friends with brokers in the city and suburbs and city brokers will NOT take a listing if they think it won’t sell and owners in the city are not understanding why their properties aren’t worth more…..they dont realize that a lot of people are leaving the city for many reasons
Just my 2 cents!
Remodeling is booming. I get calls every week for HELOCs and rehab loans now. It doesn’t make sense to move up. Prices too high and interest rates. The math isn’t great, so people are just deciding to remodel.
“Why aren’t more people listing?”
Because they have 3% 30-year mortgages?
…and all those other reasons.
“Because they have 3% 30-year mortgages?”
As I’ve said in the past, EVERYONE around the country has 3% mortgages from 4 years ago.
Why is inventory higher than 2019 in parts of Texas, like Dallas and Austin, and most of Florida?
They don’t have 3% mortgages?
Inventory rising sharply in Arizona too.
“I think there is a lot of financial and political uncertainty in the city – so people who have invested quite a bit in their places don’t want to take a loss so they are not listing until things “stabilize” or things become clearer……”
Is this the “real” clio?
Only people taking a loss, even those in River North, one of the hardest hit downtown neighborhoods, are those who bought during the bubble, 2004-2008.
If you bought just a few years ago, might be hard to cover your costs.
But inventory has declined sharply downtown now too. It’s not as strong as LP or Lakeview, but many buildings have nothing available.
yes, it’s me again lol. Thank you Sabrina for continuing this site!!! For some reason, I thought that cribchatter had gone away – I’m glad it is still going strong!!
In terms of inventory, I sold my place at Park Tower last year and bought at 401 n wabash – both buildings have numerous places on the market – most of which are listed lower than what people purchased them several years ago – same with 132 e delaware (4 seasons) and even WTP. Inventory is pretty high in those 4 buildings with prices that are below what people paid 10-20 years ago!!!
“might be hard to cover your costs.”
aka, in reality, as ‘taking a loss’ when you don’t cover your costs.
“Why is inventory higher than 2019 in parts of Texas, like Dallas and Austin, and most of Florida?”
As the NAR sez: “thanks in large part to a post-2020 construction boom”
https://mediaroom.realtor.com/2025-06-05-U-S-Inventory-Surpasses-1-Million-Homes-for-the-First-Time-Since-Winter-of-2019
Nationwide, active listings are still down over 12% from May-19–so, in general, across the country, more people aren’t selling.
As the NAR sez: “thanks in large part to a post-2020 construction boom”
So?
Dallas’ 29,000 homes in inventory is NOT new construction spec homes sitting there. Those are mostly resales. Where are all those people going? Why are they giving up their 3% rates? Job market is still good in Texas and Dallas.
In Chicago, the suburbs, and in Illinois, a couple hundred thousand people left the state in the last 5 years. Why aren’t all those homes on the market? They were all renters? Why does Illinois have the lowest inventory in the nation? Chicagoans have record equity. Why not sell and cash it in?
But I agree that the lack of building is really hitting. Several national homebuilders left Chicagoland over the last 10 years because our market was so terrible. I wonder if they’ll come back?
What’s happening for buyers right now is that if they wanted to buy in one city, they are looking at several now. Want to buy in downtown Naperville for under $1 million? Good luck. Mostly not possible outside of a few 2/2 condos for $400,000. Will have to look at other suburban downtowns, but good luck there as inventory remains near lows.
I have heard stories of 10 to 20 bids on homes. Final sales prices of over $100k to $200k over list. All cash deals up to $1 million.
It’s nuts. It reminds me of the Bay Area housing market where you go into it knowing there will be like 50 bids and everyone bids over the list and writes letters saying how they’ll love the house.
Just 252 homes available in all of Naperville. Still only 133 homes available in Lincoln Park.
“In terms of inventory, I sold my place at Park Tower last year and bought at 401 n wabash – both buildings have numerous places on the market – most of which are listed lower than what people purchased them several years ago – same with 132 e delaware (4 seasons) and even WTP. Inventory is pretty high in those 4 buildings with prices that are below what people paid 10-20 years ago!!!”
Welcome back clio.
We’ve been chattering about the upper bracket pricing on this site for the last few years. They overbuilt luxury condos. There are still hundreds available between One Chicago, the Tribune and the St Regis. It’s putting pressure on all the older buildings like the Palmolive.
We’re also seeing a turnover in generations with the Silent and Baby Boomers aging out and wanting to move to Florida, TX, Colorado or AZ. They are selling and Millennials, or even GenX, don’t really want their downtown units. Also, West Loop has taken some of the shine away as they build more luxury units there and younger people prefer to live there.
But I believe we’ll see a whole rotation out of neighborhoods like the Gold Coast and it will revitalize it. Will likely take 10 years though. We’ll also see a lot of updating of these old condo units to meet today’s standards.
Even just consider the Hancock. It used to be down on its luck for years but some sellers have renovated and the building is getting a new lease with some beautiful units coming on the market. It also helped that you can now install washer/dryer in the unit.
“Affordable” condos downtown (under $1 million) are still in demand, especially if renovated.
Prices are finally rising again after getting crushed in the pandemic.
Moved to TX a few years ago. I would not try to compare inventory/price with growth cities. Construction costs have gone up alot (50% or so in the last 5 years) so buying a new house way way out in the burbs in TX means you’re not getting the 5000 sq ft+pool for the same price as your place in chicago like 5 years ago. New homes are being built smaller – much smaller – 1200 to 1800 sq ft, on small lots, so alot more hesitation in moving. So even though builders are offering 4% mortgages, it’s a tougher sales pitch to leave chicago for that.
It’s hard to do this blog right now. Chicago inventory is SO low.
Here’s a 3-bedroom duplex in Lakeview.
“Multiple offers received! Best and final offers due at 5pm on Sunday 6/22.”
https://www.redfin.com/IL/Chicago/2943-N-Lincoln-Ave-60657/unit-202/home/13363964
BS shilling.
Chicago just got re-assessed but the tax rate hasn’t been released, so nobody knows what the new tax bills will be. List now and you’re sure to drop your price to cover the tax increase. Dropping the price hurts desirability.
Wait and price right the first time.
“BS shilling.
Chicago just got re-assessed but the tax rate hasn’t been released, so nobody knows what the new tax bills will be. List now and you’re sure to drop your price to cover the tax increase. Dropping the price hurts desirability.
Wait and price right the first time.”
Wait so you can get more offers? Sure. That’s probably wise.
Inventory in Lakeview is on the verge of going under 200 units now. Not sure if it will get there. If it wasn’t for some of the 1970s high rise buildings with units that are lingering, it would be under 100 properties.
It’s nuts.
That being said, I’m seeing some interesting developments in a few buildings in downtown neighborhoods that previously had little inventory, suddenly seeing a handful of units. I’ll be cribbing on those soon.
“the tax rate hasn’t been released”
Assessor sez that values went up more than levies, so the rate is expected to be down, in general (not necessarily in all taxing districts):
https://www.cookcountyassessor.com/news/cook-county-assessors-office-shares-new-estimated-tax-rates
My AV was down almost 5%, so I should see a nice reduction in my tax bill.