Being the 3rd largest metropolitan area in the United States, Chicago has almost three million in population. It has a very steady market, diverse economy, and massive population while being 32nd of all the Fortune 500 companies in the state.
Because of this and numerous factors, its real estate market is one of the most lucrative and best rental real estate markets in the United States. In this article, 2018 real estate market trends will be shared.
Value of real estate has gone up three percent (3%) from 2017 to 2018 with a median home valuing $225,900 in 2018 from just $219,123 in 2017.
As of 2018, price per square foot is posted at $242 with homes selling at $309,300 on average which are higher than the market price. On the other hand, the average rent price in Chicago is $1,755.
Prediction of the value of land in 2019 at Chicago is forecasted to rise by another 5.2%. For your utmost appreciation, the percentage of delinquent mortgages in it was posted at only 2%. If you want to look for some homes in Chicago, you can check out bestrealestatedirectory for a list of the best real estate deals.
2.Higher demand for rentals
Chicago is famous for being a hot and lucrative market in rental properties since over 50% of the population depends on it. With a large population and a significant percentage of renters, income will be better if you invested here specifically.
Rental price per month for apartments stands at $1,755 and is predicted to rise next year. With a higher demand and higher rental price, return on investment will be quick. Furthermore, with the hefty property taxes, citizens are reluctant to purchase homes and gravitate to renting homes instead. For instance, 12% of Chicago homes are taxed more than $10,000 a year.
3.Reasonable home prices
Since most individuals and households prefer to rent instead of buying, housing prices do not skyrocket since there is a limited demand for it.
For 2019, there will be a slow rise in home prices since the inventory of homes for sale is forecasted to tighten in the next year. Thus, attached and detached single family homes will continue to decline. This is why potential buyers should start shopping for homes in 2019, so you could find something affordable. Afterward, you can increase the value by renovating and refurbishing the home then put it up for rent.
4.The continuous influx of rentals
Not only are there numerous corporate headquarters found, but has also a trend of increasing companies moving their headquarters on it.
The increase in new company headquarters in Chicago has also contributed to job growth and an increase in rentals as well. With more businesses coming in, more people are also moving here for employment. Since relocated professionals are being attracted, the majority choose to rent out apartments upon relocation.
5.Luxury rentals as a profitable niche
In this place, both blue-collar and the working class rent homes. For the luxury house rentals, the prices have almost doubled in the past ten years. With this, Chicago has a thriving and flourishing supply of high-end properties for rentals.
It would be an advantage if you could get ahead and buy luxury properties as early as now to put up for rent in 2019 in anticipation of the demand for renting luxury properties.
With Lake Michigan just at your doorstep, it would feel like home for any working class or corporate professional moving here.
Indeed, Chicago has a large and vast pool of potential renters making your investment a good one. Its real estate market is becoming a primer for job hunters as well as investors.
With the trend this 2019, return on investment will most likely be quick and high. Its real estate market is a bright industry you should get your hands on as soon as possible. It will not be long until the supply of homes for sale tighten since many are looking to get their hands on properties to put up for rent.