Suburban luxury market stalls as buyers flock Downtown

Inventory is piling up in some of the ritziest suburban housing markets while the city housing market heats up

Chicago /
May.May 28, 2019 04:00 PM
545 College Road (Credit: Redfin)

545 College Road (Credit: Redfin)

Chicago’s success in luring corporations — and their workers — to the city from the suburbs is having a big impact on the suburban housing market.

Far-flung suburbs with a high concentration of luxury homes are experiencing a particularly slow housing market, as homebuyers chase the jobs moving back into the city, according to Crain’s.

Luxury home developers in the 1990s followed corporations out to the suburbs, building massive homes near the headquarters of companies like Sears in Hoffman Estates. But corporate relocations back to the city — and changing preferences among younger buyers — have caused market for those larger luxury homes in the suburbs to dwindle.

The problem is impacting areas like Lake Forest, which has just over a year of housing inventory on the market, and Barrington, which has 11 months of available inventory, according to Crain’s. At least 10 suburbs have more than eight months of inventory. (Six months of inventory is generally considered a healthy housing market.)

That influx of inventory is causing some homes to sell for less than they did a decade or more ago.

The problem comes even as the local luxury market had a record-breaking year in 2018, though much of that was thanks to the success of downtown developments like No 9 Walton. Luxury home sales have plummeted this year, with even North Shore lakefront mansions suffering in the current housing market. [Crain’s]Joe Ward


Related Articles

arrow_forward_ios
1930 North Orchard Street (Google Maps)
Lincoln Park mansion sale sets record
Lincoln Park mansion sale sets record
Chicago-Area signed contracts hit record (Getty)
I’ll take it: Chicago-area signed contracts soar past record
I’ll take it: Chicago-area signed contracts soar past record
Homes in the Gold Coast (Getty)
Gold Coast faces 12-year luxury supply glut
Gold Coast faces 12-year luxury supply glut
Nicholas Chabraja, above, and his wife, Eleanor, relisted their Lake Forest mansion (Redfin/Ann Lyon and Jeffrey Folker of @properties)
Lake Forest mansion relists, hoping to ride home sales wave
Lake Forest mansion relists, hoping to ride home sales wave
1919 North Howe Street (Photo via Realtor)
12K sf Lincoln Park mansion sells for $12M
12K sf Lincoln Park mansion sells for $12M
1917 North Howe Street (Google Maps)
Lincoln Park mansion sells for record-breaking $11.9M
Lincoln Park mansion sells for record-breaking $11.9M
An aerial of the 3.3 acre lot in Winnetka (Google Maps)
Lake Michigan lot to sell for record-breaking $24M
Lake Michigan lot to sell for record-breaking $24M
203 Sheridan Road (Redfin)
Here are Chicago’s priciest residential sales of 2020
Here are Chicago’s priciest residential sales of 2020
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...