Happy New Year! Now that it is 2016, it is time to start planning out the rest of the year - especially any real estate related decisions you might make, whether you are buying, renting, selling, or simply investing in the Chicago market. Here are some of our agents' predictions for the upcoming year and beyond...
Foreign investment in Chicago properties will continue. The Windy City has been darling of international investors for a while, particularly from China, the Middle East, Russia, and the rest of Asia. That trend will be on the rise in 2016 and beyond, especially in the city's high end condo buildings in hip neighborhoods and near colleges and universities.
New construction will remain on the rise. With a near endless supply of properties to renovate or tear down and rebuild, Chicago's changing architectural face is a perpetual and exciting constant.
High end rentals or "rental by choice" multi-family buildings will become increasingly common, especially in trendy neighborhoods. Not everyone wants to or is able to invest in purchasing real estate, but a luxury rental is the perfect solution.
Both buyers and renters will demand more in regard to premium appliances, cutting edge technology, unique finishes, and special amenities. People expect more bang for their real estate buck now, and they'll demand it - or go to another firm or agent.
Older condo and rental buildings will undergo upgrades in order to compete with their newer, more modern counterparts. Gotta keep up with the proverbial "Joneses", after all. Consumers are more savvy than ever and they know what to look for - and how to get - what they want in a home.
Parking availability will become less important and access to public transit will be vital as people choose to switch to a car-free existence. With fewer people opting to own their own vehicles in the big city (it's simply not necessary), they don't want to pay extra for parking - but they do want to be able to get to the CTA or order a cab, Lyft, or Uber to arrive right at their door, at their convenience.
Bucktown, Wicker Park, Ukrainian Village, West Town, Little Italy, and Pilsen will continue to grow in popularity. The North West and Near South Sides will continue to have a moment, with Hyde Park and Kenmore Park not far behind - especially if the Obama library deal happens.
Lincoln Park, the Near North Side, Streeterville, the Gold Coast, Lakeview, River North, and Lakeshore East will still be excellent investments. There's a reason these neighborhoods are the priciest - central, safe location, great schools, plenty of shopping and cultural options, gorgeous views of the city, Lake, and River, and stunning parks.
"Anchor tenants" like high end grocery stores will become increasingly popular draws for both renters and buyers. Sometimes referred to as the Mariano's effect after the luxe grocer moved into downtown, having easy access to great grocery shopping is somehow both convenient and luxurious.
Chicago home price growth will be slow and steady - and therefore perhaps more stable than the booms and busts of other popular markets. It's the classic "tortoise and hare" tale - slow and steady wins the race, and makes for better long term investments as well.
What do you predict will happen on the Chicago housing marketing in the New Year?