What Are The Chicago Housing Market Predictions For 2023? Experts Weigh In
The housing market is fast-paced, ever-changing, and complex. Aspiring homeowners and real estate investors must get to know the current state of the market to make smart, informed decisions. Learning the Chicago housing market predictions for 2023 is a great place to start.
In recent years, the housing market and real estate market have been entirely unpredictable and unprecedented. However, experts believe that the Chicago housing market will be much more predictable, stable, and strong in 2023. Here are some of the overarching predictions for what the Chicago housing market will look like in 2023:
- Market To Normalize & Stabilize – One of the most impactful Chicago housing market predictions for 2023 is that the market is expected to normalize and stabilize. For the past two years, the market has been significantly impacted by the global pandemic, which caused the market to be turbulent. In 2023, we can expect to see a solid, stable year.
- Commercial Properties Present Investment Opportunities – One of the most lucrative and important Chicago housing market predictions of 2023 is the opportunity to invest in commercial property. Purchasing commercial properties are a great way to generate income and profit off of the Chicago housing market in 2023.
- Demographics Make An Impact – Experts in real estate have noted that demographics will make a big impact on what the Chicago housing market will look like in 2023. In Chicago and other cities, we can expect age be a defining factor in what the Chicago housing market will look like in 2023 and beyond.
These are some of the Chicago housing market predictions for 2023 that speak to the market as a whole. Additionally, experts have come up with a national forecast for 2023. Here are some of the main statistics and takeaways from the Real Estate Forecast Summit that will influence what the Chicago housing market will look like in 2023:
- Annual median home prices are expected to rise 5.7%.
- Home price inflation is expected to rise 4%.
- Existing home sales will decline from 6 to 5.9 million.
- Housing starts to increase to 1.67 million.
These statistics are key for the Chicago housing market predictions for 2023. It’s important to note that regional differences will make a significant impact on how each area sees these national forecast statistics play out.
The Chicago Housing Market In 2023 Expected To Normalize & Stabilize
One of the central Chicago housing market predictions for 2023 is that the Chicago housing market in 2023 is expected to normalize. What does this mean? For the past two years, we have experienced unprecedented times in all industries across the world.
This has been especially true in the real estate industry. At the beginning of the pandemic, in March of 2020, the housing market came to a screeching halt. No one wanted to buy or sell real estate during a global pandemic. However, as the pandemic continued with no end in sight, people began to reevaluate their housing needs and financial circumstances.
Home prices and mortgage rates were at record-breaking lows, which caused a huge influx of people to buy and sell real estate. This boom cycle continued through 2021, which caused many to fear that the Chicago housing market in 2023 and even 2021 was destined to bust.
Fortunately, we did not see a bust in 2021. Prices steadily rose and inventory got tighter, but we did not see a bust or crisis. These trends are expected to steadily continue and impact what the Chicago housing market will look like in 2023. While we’re still in the pandemic, the Chicago housing market in 2023 is expected to get back to normal, steadily and stably.
As the Chicago housing market in 2023 is expected to normalize, we can expect to see the normal, seasonal cycle of trends and patterns. We won’t reach the soaring heights of 2020 but we also won’t see a rapid decline or crash.
What The Chicago Housing Market Will Look Like In 2023: Commercial Housing Property
Commercial housing properties present a lucrative investment opportunity for the Chicago housing market in 2023. Chicago has a wide range of commercial properties available, which can be purchased to generate income and profit. Listed below are some examples of commercial property available in Chicago in 2023:
- Multifamily Homes – Purchasing a multifamily home stands out as a great investment opportunity. One of the Chicago housing market predictions for 2023 is a steady amount of renters. Additionally, rental units are currently in short supply, which means that you can expect to find tenants in the Chicago housing market in 2023.
- Apartment Buildings – Similar to multifamily homes, investing in an apartment building is another great way to generate additional income. Experts predict that the Chicago housing market in 2023 will see an increase in people looking to rent apartments.
- Retail Properties – Brick-and-mortar stores saw a serious decline in the past decade; however, they’re on the rise again. Investing in retail properties is a good option to generate income from businesses and provide a storefront or shop.
- Office Buildings – Office buildings are another great investment option for commercial property. However, it is important to keep in mind that office building needs are changing as a result of the pandemic. Companies are looking for smaller-scale spaces that are easy to maintain and support hybrid in-person and work-from-home policies.
These are some of the main commercial properties that present investment opportunities for the Chicago housing market in 2023, but there are more. If you are looking to invest in real estate in 2023, getting to know the Chicago housing market predictions for 2023 is key. A realtor can offer expert guidance if you’ve never invested in commercial property before.
How Age & Demographics Will Impact The Chicago Housing Market In 2023
Demographic factors have always impacted the housing market, and this is especially true for the Chicago housing market predictions for 2023. Experts predict the following demographic-based trends for what the Chicago housing market will look like in 2023:
- Baby Boomers Hold Onto Their Homes – Baby boomers are now of the age where they want to stay in the same place, which means they are not looking to sell their homes. This one of the important Chicago housing market predictions for 2023 because it means that we won’t see an increase in inventory from this age group selling.
- Millennials Aspire To Purchase – One of the most crucial Chicago housing market predictions for 2023 is that millennials are looking to purchase real estate. This generation is rather large, so the influx of aspiring homeowners and buyers could mean that the Chicago housing market in 2023 is competitive and hard to enter.
- Record Low Birth Rate – Growing families is one of the most common driving factors for people to purchase new homes. However, with the birth rate currently at a 100 year low, this will probably cause the Chicago housing market in 2023 to be relatively stable and stagnant.
About Us – Chicago Luxury Realty
Chicago Luxury Realty is one of Chicago’s premier real estate agencies. We lend our expertise
in luxury Chicago real estate to our clients to help them successfully navigate the real estate industry and housing market.
If you want to learn more about the Chicago housing market predictions for 2023 or how they might impact your goals or plans for the year, we can help. To learn more, Contact Us Here today!