Yes! All the good things you have heard about Chicago real estate are true. As an investor, you must have looked at the different types of options, from things like bitcoin to stocks. Your research would have revealed that some offer considerable value appreciation, others offer benefits related to property taxes, and some are a good source of passive rental income. But is there one asset that can offer all of these benefits at the same time? Well, the answer lies in real estate.
Real estate has proven itself to be in a class of its own when it comes to real estate investments. Apart from the benefits mentioned above, other positive aspects of real estate investing include leveraging, diversification of risk, and protection against inflation.
However, for you to enjoy all the benefits that come with real estate investing, you must place your funds into a strong rental market. With the ever-increasing present and future demand for properties, we can confirm that Chicago is such a real estate market.
Having served Chicago neighborhoods and investors for decades, the team at MTD Property Management has the reasons why you should invest in the Chicago real estate market and its popular neighborhoods.
Home prices and availability in any property market are influenced by a number of factors, many of which are contributing to Chicago’s success. We’ve done our research and have compiled the most up-to-date and pertinent facts about the Chicago real estate market!
Because it's one of the United State's major cities, Chicago’s economy has grown to be considered a powerhouse in the Midwest region. Its geographical position makes it the center of many economic activities, not to exclude traditional elements like professional sports teams, agriculture, transportation, trade, and manufacturing. This diversification of the economy is a strong point for the city.
This has translated to the relocation and establishment of multinational companies’ regional headquarters in the city. Some of the notable enterprises employing locals include Amazon, IBM, Boeing, JLL, and Veolia Environmental Services.
When compared to other major urban areas, statistics reveal that Chicago O’Hare International Airport is one of the busiest airports on the continent. Businessmen, buyers, and real estate investors are a typical sight at the airport, coming to close deals and inquire on Chicago’s business requirements.
A main concern for a property owner is the viability of their Chicago investment property. While a rental property has a number of factors that affect its performance, the population is one of the most important. It determines the demand, the appreciation of home values, and the attainment of that higher than normal ROI.
It usually comes as a surprise to many that Chicago, Illinois, is one of the most populous cities in the continental U.S. By virtue of its vibrant and diverse economy, the city has received hundreds of thousands of new residents and renters from all over the country over the years. Most people are spread out in the metropolitan Chicago area. The allure of suburban life here has led to a population growth to the northwest and the south of Chicago.
The Chicago Metropolitan Agency projects that the population of the Chicago metropolitan area will soon top 10 million. Considering the longevity of Chicago investment properties, this bodes well for both current and future landlords.
A renter’s market can be defined as one where supply and demand ratios and overall economic conditions, such as median rent prices, make it favorable for a significant part of the population to rent and not own an investment property in Chicago.
Chicago properties' median listing price has been rising over the past few years, which is a reason to invest in Chicago real estate. Yet the increase in house prices has also resulted in more locals opting to rent rather than make a purchase.
One factor that significantly affects home prices is the availability of housing. Real estate is known as a very slow reactor to changes in the rental market. So, despite the increase in habitants, the supply of new housing is slow. This increases the allure, value, and demand of the available rentals and houses. A renter’s market is the ideal condition for any investment property owner looking to invest in the real estate market.
As an investor, you should know the importance of quality of life as a factor when acquiring an Chicago investment property. The Covid-19 pandemic has changed the status quo for many sectors of the economy. Tenants nowadays consider quality of life as one of the most important factors when choosing a rental property. This can be attributed to changed social settings in places such as university campuses and working from home policies.
With regards to the cost of housing, the Windy City is significantly affordable when compared to urban areas of a similar or larger size. It’s common to find typical renters who have moved from other parts of the country, such as San Francisco and New York, to enjoy the cheaper living costs here.
In addition to the stunning Lake Michigan and the Chicago River, there are a number of outdoor activities for families and individuals to do. The different local and county authorities have also made sure that these best neighborhoods have parks and recreational facilities nearby.
It’s hard to find a better city than Chicago, Illinois, when it comes to real estate investing. Chicago’s renter’s market, quality of life, and vibrant economy have made it a target for real estate investors over the years. To help you navigate the waters of the Windy City real estate and make informed choices when investing, you will need the services of an experienced and reputable property management company.
MTD Property Management has been providing quality property management services and sound real estate investment advice in Chicago, IL for decades. Our experience and intimate knowledge of Chicago means we know the real estate industry like the back of our hands. With only a phone call, you can have years’ worth of knowledge available to you! Our professional team is ready to help you maximize your cash flow in the Chicago real estate market. Reach out to us today and book an appointment!