Chicago Home Prices Hit Record High Amid Scant Inventory

Chicago-area homebuyers faced record-setting prices in June, as strong demand and tight inventory pushed the cost of housing to new peaks locally and nationwide.

The median price for a home in the city reached $400,000, a 5.8 percent increase from June 2023 and the highest on record, Crain’s reported, citing the Chicago Association of Realtors. Across the nine-county Chicago metro area, prices climbed 3.9 percent to a record $389,450.

The national median home price also hit an all-time high of $435,300, a 2 percent jump from the previous year. While June is typically the priciest month for buyers due to seasonal trends, the latest figures reflect more than just timing; they signal resilience in the broader U.S. economy and a rebound in consumer confidence.

Chicago’s pace of price growth outstripped the national average. Home prices rose 6.09 percent in May, second only to New York among the 20 major metros tracked by the S&P CoreLogic Case-Shiller Indices. Most other cities saw increases below 3 percent, and some even experienced declines. Chicago was also one of just five metros where price growth accelerated from April to May.

The sharp price hikes are fueled by two main factors: a persistent lack of housing inventory and room for post-pandemic growth. While explosive gains hit many markets during the pandemic-era housing boom, Chicago’s price appreciation was more subdued, leaving space for price growth now. The city has less than half the inventory of pre-pandemic levels, forcing buyers to pay top dollar for limited options.

Sales activity has picked up slightly. Chicago home sales in June were up 2.7 percent year-over-year, while the metro area saw a 7.2 percent increase. Both figures are below pre-pandemic norms. Chicago’s sales last month amounted to 85 percent of the June average from 2015 to 2019.

Zillow forecasted a 1.5 percent dip in Chicago-area prices over the next year, mirroring projected trends in other major cities. While that may offer some relief to prospective buyers, housing affordability is a growing concern.

—Rachel Stone