Mashvisor Home

Discover

Chicago

Chicago, located in Northeastern Illinois, is the most populous city in the State of Illinois and the third largest city in the United States. With a population currently sitting at over 2.7 million, The Windy City comes in third only to New York and Los Angeles. However, while most other major cities in the nation are enjoying population growth, Chicago’s population has actually been in decline for a few consecutive years. In fact, between 2016 and 2017, the metro area saw a loss of about 13,000 people. Nevertheless, with a population of over 9.5 million, the Chicago metro area is not suffering from this loss.

While a current or future Chicago real estate investor might take this as a bad sign of the market’s health, it’s important to look at the demographic makeup of the existing population in the city. Chicago, along with the Midwestern cities of Columbus, Indianapolis, and Madison, beats the entire nation when it comes to having a population in the age range of 25-44, which is considered the “prime worker” years. So the current loss of population is not hurting the economy nor the Chicago housing market as the residents staying behind make up a key part of the workforce in the city. And it’s important to note that buying a rental property in Chicago will mean having an abundant tenant pool as about 57% of the population rents a home rather than own one according to NeighborhoodScout.

Beyond the large workforce in the city, Chicago also has an emerging economy owing to the steady job growth. At the end of 2018, the Chicago-Naperville-Elgin metro area saw a growth rate of 1%, which was only slightly below the national rate of 1.6%. The Chicago real estate market also enjoys the environment of a diversified economy thanks to the city’s central location, making it more accessible than other major metro areas in the US. One of the leading industries in Chicago is manufacturing, specifically of food. Chicago is known as the “Candy Capital” of the nation as a large concentration of candy manufacturing companies call Chicago home. Other major industries include transportation, information technology, health services and technology, printing and publishing, finance, and insurance.

The Chicago housing market is one of the top five markets in the Midwest real estate market according to the annual PWC real estate report. Property investors from all over the nation are showing interest in buying Chicago investment properties as it’s one of the more affordable gateway markets in the US.

Chicago Realtors and Real Estate Agents

Select agents


Chicago  Real Estate Investment Performance
Facts and Market Trends in Chicago
Homes For Sale4,876
Airbnb Properties1,374
Rental Properties29,162
Traditional Vacancy rate8.50%
Airbnb Occupancy Rate46.62%
Mashmeter70.47%
Median Price$347,500
Median Rent Price$1,854
Price/sqft$295
Median Days on Market64
Price to Rent Ratio19.2
Average Cap Rate
Airbnb-1.13%
Traditional1.33%
Average Rental Income
Airbnb$1,531
Traditional$1,739
 
Median Household Income$55,295
Population2,716,450
Transportation in Chicago
78 / 100
Very Walkable
65 / 100
Good Transit
72 / 100
Very Bikeable
Chicago  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,116$1,153$1,284$1,597$2,441
Traditional$966$1,040$1,326$1,772$2,243
Chicago, IL - Homes for Sale - Newly Listed
$299,900
MLS 11053182
7326 South Euclid Avenue
Chicago, IL 60649
Jackson Park Highlands
Single Family Residential
3 beds2 baths1,692 sq.ft.
CAP RATE
Trad. 2.13%Airbnb -1.02%
$249,900
MLS 11052861
3745 South Michigan Avenue #2
Chicago, IL 60653
Bronzeville
Condo/Coop
3 beds2 baths1,500 sq.ft.
CAP RATE
Trad. 5.34%Airbnb -0.44%
$235,000
MLS 11044242
2112 West ARMITAGE Avenue #GW
Chicago, IL 60647
Bucktown
Condo/Coop
2 beds1 baths0 sq.ft.
CAP RATE
Trad. 3.68%Airbnb 1.36%
$589,900
MLS 11044224
5137 North LINCOLN Avenue #3N
Chicago, IL 60625
Budlong Woods
Condo/Coop
3 beds2 baths0 sq.ft.
CAP RATE
Trad. -1.27%Airbnb -1.48%
Top Performing Chicago Properties
$99,900
MLS 10708689
5310 North Chester Avenue #116
Chicago, IL 60656
O'Hare
Condo/Coop
1 beds1 baths700 sq.ft.
CAP RATE
Trad. 4.53%Airbnb 7.93%
$185,000
MLS 11040572
1859 South Avers Avenue
Chicago, IL 60623
Homan Square
Single Family Residential
4 beds2 baths1,500 sq.ft.
CAP RATE
Trad. 4.91%Airbnb 7.62%
$208,900
MLS 10917709
1056 North Leavitt Street #GR
Chicago, IL 60622
Ukrainian Village
Condo/Coop
2 beds1 baths800 sq.ft.
CAP RATE
Trad. 3.27%Airbnb 7.49%
$209,999
MLS 10877928
2657 West Cortez Street #2
Chicago, IL 60622
Ukrainian Village
Condo/Coop
2 beds1 baths0 sq.ft.
CAP RATE
Trad. 3.29%Airbnb 7.48%
Recently Sold Homes in Chicago, IL
$124,000
MLS
4859 S ELIZABETH STREET
Chicago, IL 60609
Back of the Yards
Multi Family
5 beds3 baths2,540 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$0
MLS
917 N CICERO AVE
Chicago, IL 60651
West Humboldt Park
Multi Family
4 beds2 baths1,928 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$0
MLS
4300 W Ford City Dr A-509
Chicago, IL 60652
Ford City
Condo/Coop
1 beds1 baths300 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$0
MLS
9233 S MANISTEE AVE
Chicago, IL 60617
South Chicago
Single Family Residential
3 beds1 baths864 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Chicago Housing Market

The Chicago real estate market has not historically experienced major property appreciation when compared to other large metro areas but beats most other cities in Illinois. Since Q1 of 2000, Chicago properties have experienced a total appreciation of 51.53%, at an annual average growth rate of 2.24% (according to NeighborhoodScout). Although real estate appreciation was minor in 2018 (Zillow reports 0.7% in 2018), it is on the rise in 2019 with a forecasted increase of 1.6%. This positive appreciation still makes the Chicago housing market a good place to buy investment property.

Currently, however, the city comprises a hot seller’s market. This is mostly due to the housing inventory shortage which most markets across the US are experiencing.

Chicago, IL Top Multi Family Homes
$159,900
MLS 10863826
6435 South LONG Avenue
Chicago, IL 60638
Chrysler Village
Multi Family
2 beds1 baths900 sq.ft.
CAP RATE
Trad. 7.48%Airbnb N/A
$195,000
MLS 11018723
2938 West Fillmore Street #100
Chicago, IL 60612
Douglas Park
Multi Family
3 beds2 baths2,500 sq.ft.
CAP RATE
Trad. 5.89%Airbnb N/A
$225,000
MLS 10908364
7445 South Saint Lawrence Avenue
Chicago, IL 60619
Grand Crossing
Multi Family
5 beds2 baths0 sq.ft.
CAP RATE
Trad. 5.69%Airbnb N/A
$205,000
MLS 10954423
1518 East 75th Street
Chicago, IL 60619
Grand Crossing
Multi Family
6 beds2 baths0 sq.ft.
CAP RATE
Trad. 5.02%Airbnb N/A
Homes Below Median Price in the Chicago, IL Real Estate Market
$99,900
MLS 10708689
5310 North Chester Avenue #116
Chicago, IL 60656
O'Hare
Condo/Coop
1 beds1 baths700 sq.ft.
CAP RATE
Trad. 4.53%Airbnb 7.93%
$185,000
MLS 11040572
1859 South Avers Avenue
Chicago, IL 60623
Homan Square
Single Family Residential
4 beds2 baths1,500 sq.ft.
CAP RATE
Trad. 4.91%Airbnb 7.62%
$208,900
MLS 10917709
1056 North Leavitt Street #GR
Chicago, IL 60622
Ukrainian Village
Condo/Coop
2 beds1 baths800 sq.ft.
CAP RATE
Trad. 3.27%Airbnb 7.49%
$209,999
MLS 10877928
2657 West Cortez Street #2
Chicago, IL 60622
Ukrainian Village
Condo/Coop
2 beds1 baths0 sq.ft.
CAP RATE
Trad. 3.29%Airbnb 7.48%
Chicago Airbnb Growth and Regulations

In early 2016, the Chicago real estate market was one of the most popular Airbnb destinations and the fifth largest market for the vacation rental industry. The short-term rental market was set for serious growth. Nonetheless, in the last two years, Airbnb growth has slowed down with only a 3.9% increase in listings. This is because of the introduction of strict and costly Airbnb regulations in 2017, forcing the Airbnb Chicago market down to twelfth place for largest markets.

For Airbnb investors in Chicago, renting out a non-owner occupied single family home or multi family home with 2-4 units is illegal as these types of short-term rental properties are limited to primary residences only by law. However, an Airbnb investment property that has 5 units or more can operate legally as long as no more than 1 quarter of the units or up to 6 units (whichever applies) are rented out on a vacation rental website.

In order to operate within the bounds of the Airbnb Chicago laws, you must first identify which category of short-term rental your unit falls under - a shared housing unit (if it’s listed on sites deemed as “intermediaries” by law like Airbnb) or a vacation rental (if it’s listed on sites deemed as “advertising platforms” like HomeAway). Shared housing units are required to register with the city, while vacation rentals are required to obtain a licence.

Besides this, there are also large taxes in place for Airbnb rental owners as well as fees for the appropriate licences and registrations. Any listing found illegally operating will suffer heavy fines of up to $1,500-$3,000 a day.

Chicago, IL Top Airbnb Homes
$83 per night
Entire home/apt · 1 bed
Spacious Studio, Amazing Location!
627
$130 per night
$100 per night
$65 per night
Entire home/apt · 1 bed
Boystown Studio, Outstanding Value!
504
Chicago, IL Homes for Rent
$775
MLS 11052369
2151 East 80th Street #1
Chicago, IL
Stony Island Park
Single Family
1 beds1 baths800 sq.ft.
$1,325
MLS 11052994
$3,150
MLS 11053005
727 South DEARBORN Street #810
Chicago, IL
Printers Row
Single Family
2 beds1 baths1,450 sq.ft.
$3,300
MLS 11053485
160 East Illinois Street #2007
Chicago, IL
Near East Side
Single Family
2 beds2 baths1,100 sq.ft.
Chicago, IL Open Houses
Open 11 AM to 1 PM
$285,000
MLS 11023530
6121 North Sheridan Road #5F
Chicago, IL 60660
Edgewater Beach
Single Family Residential
2 beds2 baths1,245 sq.ft.
CAP RATE
Trad. 3.10%Airbnb 0.67%
Open 11:30 AM to 1:30 PM
$699,000
MLS 11052801
728 West Barry Avenue #1E
Chicago, IL 60657
Lake View East
Condo/Coop
4 beds3 baths2,450 sq.ft.
CAP RATE
Trad. 7.38%Airbnb -0.44%
Open 1:30 PM to 3 PM
$499,000
MLS 11052424
933 West 18th Place #1W
Chicago, IL 60608
East Pilsen
Condo/Coop
3 beds3 baths1,771 sq.ft.
CAP RATE
Trad. 1.27%Airbnb -1.23%
Open 12 PM to 2 PM
$285,000
MLS 11052156
1224 West VAN BUREN Avenue #318
Chicago, IL 60607
Greektown
Condo/Coop
2 beds1 baths0 sq.ft.
CAP RATE
Trad. 4.36%Airbnb 0.10%
Best Chicago Neighborhoods for Buying Investment Property
86%
Mashmeter
property price
$535,000
Median
cap rate
6.82%
Traditional
8.95%
Airbnb
rental income
$3,042
Traditional
$3,988
Airbnb
homes for sale
25
occupancy rate
52%
Airbnb
85%
Mashmeter
property price
$489,950
Median
cap rate
5.18%
Traditional
4.87%
Airbnb
rental income
$2,113
Traditional
$1,989
Airbnb
homes for sale
62
occupancy rate
47%
Airbnb
86%
Mashmeter
property price
$310,000
Median
cap rate
9.88%
Traditional
14.32%
Airbnb
rental income
$2,552
Traditional
$3,699
Airbnb
homes for sale
42
occupancy rate
47%
Airbnb
81%
Mashmeter
property price
$429,900
Median
cap rate
11.56%
Traditional
11.64%
Airbnb
rental income
$4,140
Traditional
$4,171
Airbnb
homes for sale
304
occupancy rate
49%
Airbnb
84%
Mashmeter
property price
$450,000
Median
cap rate
7.85%
Traditional
10.76%
Airbnb
rental income
$2,944
Traditional
$4,035
Airbnb
homes for sale
43
occupancy rate
50%
Airbnb
All Chicago Neighborhoods