Statistics show that Chicago is the third most populated city in the United States.
This continues to hold true, even with many people leaving metropolitan areas when work became largely remote for a portion of the last 1.5 years.
As an agent, how can you increase your portfolio diversification during this year? What would a smart investor do to prepare to set themselves apart in this market?
Keep reading to learn about the housing market trends for this year:
The extreme demand for homes since last summer has led to a low level of inventory remaining.
This is partly due to the low interest rates that are allowing people to have more buying options than they may have before. Another reason is that people are refinancing and not needing to move, even with changes in their income.
More Room Is Driving the Housing Market
Why rent when you can own a space? What do homes have that apartments don’t?
The need for more space and the desire to have access to outdoor options has been a growing demand over the last year. The spike in the work from home movement has led consumers to realize that their one bedroom apartment was not designed to be an office for two people and a dog.
Purchasing a house gives people access to more room without overpaying for another room when renting out an apartment or condo within the city. Sharing how they could convert the space may help them see this.
During favorable weather, many people will opt to take their work outside to enjoy the sunshine. This is difficult to do if you don’t own the area and are forced to utilized community areas or parks when you are renting.
There are a few options currently for investment opportunities within the Chicago area.
One of these options is to purchase and renovate fixer upper houses. With the rising cost of homes, you can take less desirable properties and turn them into options that will be worth significantly more with a few minor improvements. This is a more beneficial approach when you can receive a financial gain in the future versus losing the value of the home over time.
Another investment opportunity is with commercial real estate. The big moves from traditional office spaces mean that some of the most desirable work spaces in Chicago are sitting empty. Investing in these buildings can lead to a large payout when business return to the office in the future.
Stay Updated Today
Now that you have read more about the housing market trends for this year, you can take action based on this information today. Having a strategy for how to approach the market can help you stay with the trends and not fall behind in profitable areas of it.
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