Chicago area home prices outpace national increase

[Henry Lazerow]

Interesting article! https://www.chicagobusiness.com/residential-real-estate/chic...

To sum it up chicago did not appreciate to the degree comparable cities did during the low interest rate period and seems to be getting steadier long term appreciation instead. Not mentioned in the article but I like how in Chicago you can still find deals and actually house hack/cashflow in class A/B growing areas like Albany Park, Logan Square, Avondale, while in similarly sized cities the hot desirable parts of town have such low cap rates its much harder to make the numbers work.

A big strategy I use for clients is knowing the current MARKET rents to get our cap rates on 2-4s high. To give an example my Avondale clients are now hitting $1850-1950 a rehabbed 2/1 but 90% of MLS listings are only being listed with $1200-1550 a 2/1 so it gives a big opportunity for those who know what rents can realistically be pushed to. Same with Albany Park the average MLS building has 2/1s at $1100-1400 but comps now getting $1700-1800 updated 2/1s, I always advise my clients to use that knowledge when running their numbers and ignore the current rents that all the competing buyers see.