Real estate investing. Is Chicago a good place to invest in real estate? Read on to find out whether you should invest in Chicago or not.
With a good investment in Real Estate, people can make a huge amount of profit. Therefore, it is necessary to search for demanding places.
People can invest in any property but they should remember that not all places have the same value. That's why they can lose money for the places that are not popular or have less value.
For this reason, investors are searching for the highest-paid places and they get confused when it comes to Chicago.
Investors cannot decide easily whether they should invest in Chicago in the real estate market or not. For such investors, we write this article.
In our opinion, Chicago is a good place to invest in real estate. Therefore, in this article, we have discussed all the reasons due to which you should invest in Chicago.
So, let's dive into the discussion.
Table of Contents
Why is Chicago the Best Place to Invest in Real Estate?
According to various reports, the housing demands in Chicago are increasing. These demands increase the sale price of properties in just some years.
It is interesting to see that regardless of the pandemic, property prices in the place keep increasing. For this reason, if you are willing to invest in this place, then it is the right time.
In addition, Chicago is the third-largest city in the United States and the largest city in Illinois by far. Due to the 3 million residents as Landmark Property Management says, Chicago has a huge demand for rental properties. This demand increases the Chicago housing market rates as compared to other big cities like Los Angeles and New York.
In addition to that, the following are some reasons why you should consider Chicago as a good place for investing in real estate.
1. Renter Market is Strong
With time, the sales transaction of the properties increases. This also enhances the rates of the Chicago real estate market.
This increase in the price rate is the main reason why people choose to rent their houses instead of buying the houses.
The average rent of Chicago properties with 3 bedrooms is $2250 per month. If the people buy the house they have to pay more.
But by renting, the owners of the house can get an advantage. It means this is a good investment and people should take advantage of this by renting their homes.
2. Increase in Population
According to the REJournals, in the past 10 years, the population of people living in Chicago city increased by 2%.
Due to this increase in the population, Chicago has become the 3rd largest city in the U.S leaving Los Angeles and New York behind.
With more population, there is a high need for properties so that people can settle easily. The people of Chicago will pay any amount of money to get a property.
Therefore, by owning a property you can sell them to other people or just rent the property. In both cases, you will benefit, so do not lose the chance of investing in Chicago.
3. Real Estate Market
As compared to the other cities' real estate markets. Chicago's real estate market has become hot with time. This is because of the increasing construction cost and inventory shortages.
According to the different reports, people with medium income can lose bids on less expensive properties. Therefore they prefer to stay in rental properties.
The main reason for the high prices of the properties is the low level of inventory. Due to this, even the value of average homes in Chicago has increased by 8.6% according to RoofStock. This is the reason why normal earning people lose bids for such properties.
4. High-Quality Life
People are choosing Chicago as the best place to live because of its high-quality life. Both the Chicago land suburbs and Chicago city provide the best quality of life to people.
Therefore, according to the reports, it is the second-best city in the US to live in. The best part is that the cost of living is also very affordable.
You have to spend the same amount of money on living that people spend in many other cities. Also, Chicago is included in the list of “Best places for business and careers”
5. Commercial Location
Due to its location, Chicago's demand for properties is quite high. And, people love to trade in properties because of the area and the value.
All the properties have the best visuals around them. Due to this, people love to visit Chicago. It is one of the best cities that people love to visit.
Furthermore, Chicago has straight connections to almost all the major metros in the United States. That's why the transportation network of the city is extensive and appealing.
The renter can get a huge advantage from these easy transportation facilities to move in the city and select the property that they want to own.
In addition, Chicago has two airports. One of these airports is the O'Hare International Airport.
6. Increasing Job Market
With the increasing population and the area demand, the demand for jobs also increases. Due to this, the job market of Chicago is making a profit.
According to Landmark Property Management, the job market has a profit of 1.10% per year. Therefore, it is one of the largest markets and financial centers in the United States.
In the metropolitan area, the growth rate of employment has increased at a large rate, and in the coming 30 years, Chicago will create 200,000 new jobs.
What else do you need to consider Chicago as the best city for real estate? Do not worry, here we have mentioned some facts that you should know about Chicago.
- There are more than 390 major corporate headquarters in Chicago
- Chicago has more than 500 fortune companies
- There are five major American professional team sports
- Chicago has a strong hospitality and tourism industry
- There are two major universities in Chicago including Northwestern and the University of Chicago
In addition to all these facts, there is much more that you should know about Chicago. If you want to learn more, you can visit the official website of Chicago.
How is Chicago the Unique Real Estate Market?
As we have discussed above, the population of Chicago grows 2% every year. This is because the city is so affordable to live in unlike other big cities in the US.
Due to the increasing population, the demands for properties also increase, which improves the real estate market. Here people can bid for both large and small properties. Similarly, average earning people and rich people can participate in the bidding, if they want to own the house.
The growth rate of the real estate market increases by 4% to 7%, with time, according to Landmark Property Management. So if you want to invest in the real market now then investing in Chicago it is the right time.
If you wait for some time then the prices will go up and you'll have to invest more. So take advantage of the time and secure your money.
See related: Is Dallas a Good Place to Invest in Real Estate?
How Much Profit Can Investors Make in the Chicago Market?
If they sell the property then they can have even more benefits. The prices of properties depend on the location. If you want to invest in a busy area then you can get 3 to 6% cash on return on a down investment of 20%.
But if you invest in the under-constructed or free areas then the return rate will be below the expectation. But do not worry as you will still get a good return on your investment.
Is the Chicago Market Competitive?
In simple words, Yes, the Chicago market is competitive. This is because of the quality lifestyle, better job facilities, and the great transportation system.
Also, the rates are affordable which attracts the attention of most people. Here people can get every facility at a lower rate than other big cities of the US provide.
According to Landmark Property Management, you can see around 7 to 15 offers in a single property in just 2 to 3 days. With time the competition in the market has increased.
Here people bid for both high price and low price properties just to make sure they win a single property in Chicago.
Is Chicago a Good Place to Invest in Real Estate? Wrapping It All Up!
Chicago is the second biggest city in the US in terms of population. People enjoy the quality lifestyle here and the facilities that this city offers.
There are many other facilities that this city provides. And, while we can not mention all of them we have discussed the best features of Chicago here that you should know.
This information is enough for you to decide whether you want to invest in the Chicago real estate market or not. In our opinion, you should invest in it.
We have mentioned the best reasons above. But the main reason is the profit that no other city will provide you. The more you invest in Chicago the more profit you will get.
With time its demands are increasing. Therefore, if you invest now you can get the properties in easy terms. But if you take time then rates will get high and you can not invest in it.
So what are you waiting for? Make the right use of time and invest in the right places.