Is All this New Construction a Good or Bad Sign? - Chicago

[Daniel Orkin]

Hi there -- I'm very new to RE and BP, so apologies if common economic logic already answers this question.

I live in Chicago along the Blue line in Logan Square, which is a "hot" neighborhood. I see plenty of future growth in these parts, and am eager to buy an old 2-flat or 3-flat (what the rest of the country calls a 2 or 3-plex).

Everywhere I go in this neighborhood I see new condos springing up like concrete weeds, including several gargantuan buildings by the California train stop in an area that's mostly SFRs and small multis.

My question is this: Is the influx of new construction a great sign for the rising prospects of the neighborhood or is it just creating competition for older buildings and rents?  

For example, say I buy a few units in the next year or two. If there are thousands of brand new, rental units down the street, will supply outpace demand? 

Thanks for any insight from afar or from any Chicago/60647 pros.