What are people doing in this market?

[Devin Londo]

I live in Chicago, Illinois, and am in the process of (trying) to do a 1031 exchange, but am having a really hard time finding a new deal that makes sense. 

What I'm seeing with interest rates and taxes going up, are most places don't do more than just cover their operating expenses. Maybe I'm looking in the wrong places, but I'd welcome anyone's insight on this. 

Thanks! 

[Justin R.]

Generally speaking, deals are harder to find now than in the last decade. Prices have crept up, and interest rates are rising. Historically, interests rates and housing prices follow an inverse pattern. When this inverse pattern is not met, affordability tanks, and eventually home prices will have nowhere to go but back down.