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