Recent Census data suggests there are 19.95 million U.S. rental properties. The Census also estimates that individuals own approximately 70% of rental properties.
Real estate makes for a good investment because it offers multiple benefits, including passive income, tax benefits, protection against inflation, diversification of risk, and considerable appreciation.
What is a hot place to invest and make money these days? We suggest you look at Chicago real estate, and here is why.
Invest in Chicago Property
When you decide you want to make an investment in real estate, an important aspect is choosing the right location. When you invest in a strong market, you get more profits.
If you are looking to invest in rental properties, the Chicago market has a forever increasing demand. You could even get a multi-unit building to help pay your mortgage while you live there, too. Click here to sell my house and learn more.
It Is About What Chicago Offers
The nickname of Chicago, which is the Windy City, has two theories behind it. One is that they call it the Windy City because of those freezing winds that blow over Lake Michigan, while another refers to Chicago’s political landscape.
There is a lot more to the Windy City than just these two things. In the Midwest, Chicago boasts itself as the primary financial and business center. The city of Chicago hosts fifteen of the largest Fortune 500 companies.
The reason that businesses can thrive so well in the Chicago area is that it hosts the infrastructure and transportation system that can support a large community of workers.
Approximately 1.7 million passengers use Chicago’s elevated rails, trains, and bus system daily. Employment is accessible to both city dwellers and suburban residents.
Beyond the local transportation system, Chicago has two airports for when you want to travel for business or pleasure. One airport in Chicago is O’Hare International Airport.
Chicago has a strong hospitality and tourism industry, too, which also creates job opportunities for residents.
Chicago is home to two major universities, which are the University of Chicago and Northwestern.
In total, there are 28 universities in Chicago. College students make for great potential renters, too.
Entertainment, Leisure, and Recreation
You find that the lifestyle of living in Chicago is more laid-back than in other big American cities like Los Angeles and New York. There is still lots to do and enjoy life in the Windy City.
- 552 parks
- 19 miles of bike paths along Lake Michigan
- 15 miles of beaches
- Approximately 200 theaters
- Around 200 art galleries
Further, for anyone who loves sports, Chicago is home to multiple professional sports teams. This includes baseball, basketball, football, ice hockey, and soccer.
Millennials Show Preference Toward Renting
In recent years, there has been an extremely competitive housing market, which hasn’t presented a lot of opportunities to a first-time home buyers. With a competitive housing market, for some millennials, renting is their only option.
Still, other millennials need a lifestyle that can offer mobility. Renting can seem like a better option depending on several factors for a person’s unique situation.
Strong Renters’ Market
The Chicago real estate market is increasing in sale transaction prices. The rise in home prices for Chicago property makes renting a home seem like a better option.
According to Zillow, the rent for all property types and all bedrooms on average in Chicago is $1,758 with a +$263 year-over-year change.
Inventory Shortages and Increase in Construction Cost
This is another reason that Chicago real estate is hot. What is not to love about new construction? Well, at least for today, people may not love paying the price for new construction.
Homebuyers with a medium income level must look at properties that are less expensive if they want to buy them, and it may not be a home that is particularly of their taste. Some people rent because it is easier to find a property you like.
This is a big reason for the increase in home prices, though, because inventory levels are low. Low inventory can lead to bidding wars and first-time homebuyers may not have an interest in having to pay extra to outbid someone else.
Foreclosure Wave Hits Hard in Chicago
Recent news and statistics show that there is a nationwide foreclosure wave and Chicago is leading it. This comes almost one year following the decision to end the pandemic eviction moratorium. Although some experts believe it results from a rising Federal Reserve interest rate.
No matter the reason, there is still a rise in foreclosures recently. In the first three months of 2022, Chicago real estate witnessed over 3,000 foreclosures.
How Much Can You Profit From Chicago Real Estate?
No matter if you wish to sell or rent Chicago property that you invest in, you could make a profit. If you rent your Chicago property, you will have a passive income. Selling has more benefits.
The price of Chicago property largely depends on the location. If you invest in a busy area with 20% down, you could get a 3% to 6% cash return.
Invest in Property
Whether you want passive income, profits from appreciation, or any of the many benefits investing in Chicago real estate offers, it is worth doing some research. There is a lot of opportunity today for real estate investors.
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