Supply glut may set downtown home market back a year

Investors perceive Chicago as less of an opportunity, motivating selloff

TRD CHICAGO /
Sep.September 02, 2020 08:00 AM
211 N Harbor Dr in Lakshore East (Redfin; iStock)

211 N Harbor Dr in Lakshore East (Redfin; iStock)

A mixture of coronavirus and social unrest may be setting portions of Chicago’s real estate market back by a year or more.

Properties for sale have flooded neighborhoods such as Lakeshore East, the northern part of the Loop and part of the city stretching from Streeterville to Oak Street, according to Crain’s, which used Midwest Real Estate Data to track the changes.

In ZIP code 60601, approximately 15 months’ worth of inventory are on the market, while across the Chicago River in 60611, there are enough homes to sell for the next 11.5 months.

A healthy market typically has four to six months’ of housing inventory available, Crain’s noted.

It’s not the case, however, that city homeowners are fleeing en masse for the suburbs. It’s investors who have put much of the current supply on the market.

Real estate agent Amir Fouad told Crain’s that in addition to property taxes, which the city is expected to hike to fill a gaping hole in its budget, safety concerns have made the city less attractive.

New development has also contributed to oversupply. The city’s most saturated ZIP code, 60601, includes units at a 47-story tower called Cirrus, currently under construction.

Vacant luxury condos, including new units at One Bennett Park, Vista Tower and No. 9, have also contributed to the glut. [Crain’s]Orion Jones


Related Articles

arrow_forward_ios
Plaza on DeWitt, 260 E. Chestnut Street

Downtown condo ponders mask mandate, big penalties

Downtown condo ponders mask mandate, big penalties
65 E. Wacker Place (Credit: Google Maps)

Facing possible default, Loop office building hits market

Facing possible default, Loop office building hits market
Homebuyers have flocked to Bronzeville (Credit: Google Maps)

Chicago homebuyers head to Bronzeville for more space

Chicago homebuyers head to Bronzeville for more space
Penny Pritzker and North Kenmore Avenue (Credit: Google Maps)

Office of Penny Pritzker picks up Lincoln Park mansion

Office of Penny Pritzker picks up Lincoln Park mansion
Robert Reffkin and Fran Broude (Getty, Linkedin, iStock)

Compass taps ex-Coldwell exec to oversee Chicago growth

Compass taps ex-Coldwell exec to oversee Chicago growth
(iStock)

Chicago’s office market hits ugly vacancy number

Chicago’s office market hits ugly vacancy number
Tower of power: a look at who’s buying at No. 9 Walton

Tower of power: a look at who’s buying at No. 9 Walton

Tower of power: a look at who’s buying at No. 9 Walton
401 S. State Street (Credit: Google Maps)

Or best offer: Facing default, Loop office building hits market

Or best offer: Facing default, Loop office building hits market
arrow_forward_ios

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

Loading...