Kenosha Heats Up as Chicago Homebuyers Seek Affordability

A city north of the Illinois border — popular with Chicagoland commuters — was one of the hottest real estate markets in the country in September, according to a ranking that showed strong activity in affordable Midwest markets.

Kenosha, Wisconsin, was the third-hottest real estate market nationally last month. The city, about 60 miles north of Chicago, was joined by six other Wisconsin markets and two in Illinois in the top 20, ranked by days on the market and activity on Realtor.com’s listing page.

Kenosha properties received about 2.7 times more views per property than the U.S. average in September. Kenosha houses spent about 34 days on the market last month, compared to the national median of 62 days.

The rankings reveal buyers are increasingly interested in low-cost markets outside major hubs like Chicago, where prices are rising and low inventory is squeezing availability.

Kenosha is a popular destination for people moving out of the Chicago area, said Ben Gentile, a broker with Epique Realty who works in Kenosha and nearby communities. As the Chicago suburbs have gone up in price and property taxes keep rising, Gentile said he’s seen a growing number of buyers leaving the area for southeast Wisconsin.

“People from Cook County are moving into the suburbs for affordability, safety, things like that,” Gentile said. “And then that’s pushing people out of the suburbs to relocate out to these other areas that are less expensive.”

Kenosha’s placement on Interstate 94, between Chicago and Milwaukee, makes it a common place for commuters to the larger cities, Gentile said. He said a sizable chunk of new Kenosha residents are commuters who work in the Chicago area, often in the suburbs.

One reason for Kenosha’s red-hot market is a persistent low inventory, Gentile said, as construction has not kept up with demand. Sellers can command high prices for their listings, and there’s a large pool of buyers eager to snatch up available houses. That influx of interest can make buying difficult for locals, especially first-time buyers, Gentile said.

The median home sale price in Kenosha increased from $185,000 in August 2020 to $296,000 in August of this year, according to Redfin. Prices this August were up 22 percent year-over-year from last August.

A similar picture is playing out elsewhere in Wisconsin: Appleton and Wassau tied for fifth place in Realtor.com’s hotness rankings, while Racine, just north of Kenosha, came in seventh. The Janesville and Green Bay markets ranked ninth and 10th, while the Milwaukee metro ranked 19th. Properties in those Wisconsin markets were viewed at least twice as much as the national average and spent fewer than 40 days on the market.

In Illinois, two markets cracked the list: Rockford came in eighth, with 2.9 times more views per property than the national average. The average Rockford house was listed at $250,000 and spent 38 days on the market. Springfield, where the average listing price was $204,000, ranked 12th. Houses there were viewed 2.4 times more than the national average and spent 34 days on the market.

Several apartment and residential projects are underway in the Kenosha area, according to local reporting. But with the long timeline and high cost of construction, it’s likely Kenosha will stay hot and remain a seller’s market for at least the next few years.