Chicago Area Housing Market: Insights from Our Latest Reports

Chicago Area Housing Market: Insights from Our Latest Reports

As 2025 came to a close, the Chicago-area real estate market demonstrated both resilience and opportunity across city neighborhoods and the western and broader suburban markets. By reviewing these together, we can see a comprehensive picture of market trends that benefit both buyers and sellers.



Western Suburbs: Strong Growth Across Price Points

Our 2025 Year-End Western Suburbs Market Overview highlighted consistent appreciation throughout communities like Downers Grove, Lombard, and Villa Park. Detached single-family homes saw double-digit gains in certain markets, and affordability in towns like Lombard and Villa Park continued to attract new buyers. Inventory remained tight, which sustained strong seller leverage, but the range of properties offered opportunities for first-time and move-up buyers alike.


Key takeaway: The western suburbs offer a balanced mix of growth and affordability, making them a stable option for both investors and homeowners.



Broader Chicago Suburbs: Year-End Price Gains Continue

The December 2025 Chicago Suburbs Housing Market Recap, shows that detached single-family homes across key suburbs continued to appreciate despite the winter slowdown. Communities like Des Plaines (+4.3%), Morton Grove (+4.8%), Park Ridge (+4.2%), Skokie (+9.5%), and Niles (+5.8%) all saw year-over-year gains. Tight inventory and strong buyer demand drove these increases, with Skokie recording the highest growth. Overall, suburban markets ended 2025 with stable, upward price momentum, demonstrating continued strength and opportunity for buyers and sellers heading into 2026.


Key takeaway: Suburban buyers and sellers experienced a strong finish to 2025, reinforcing the suburbs’ role as a core market driver for the region.



Chicago Neighborhoods: City Market Momentum

The December 2025 Chicago Neighborhoods on the Rise report shows strong year-end momentum in key urban markets. Areas like Near West Side, Lower West Side, The Loop, Near North Side, and Bridgeport experienced price growth across condos, townhomes, and detached homes. Rising values were driven by buyer demand for transit access, cultural amenities, and walkable city living, demonstrating that Chicago’s urban neighborhoods remain an attractive complement to suburban markets.


Key takeaway: Urban buyers seeking city living continue to find opportunities, particularly in neighborhoods that benefit from cultural amenities and transit access.



Connecting the Dots: Suburbs and City Markets

By reviewing these three reports together, several trends become clear:

  • Consistent Price Growth: Both the suburbs and select city neighborhoods experienced upward pressure on home values throughout 2025.

  • Inventory Constraints: Limited housing supply fueled competition across all markets.

  • Buyer Opportunities Vary: While suburbs offer more stable growth and broader affordability, city neighborhoods present selective investment opportunities tied to lifestyle and local amenities.

This holistic view shows how different Chicago-area markets complement each other, providing opportunities for a range of buyers, from first-time homeowners in growing suburbs to urban investors looking for high-demand city neighborhoods.



Expert Perspective: What 2026 Holds

The data suggest moderate but continued growth in 2026, with suburban markets maintaining steady appreciation and urban neighborhoods showing selective strength. Buyers and sellers who leverage hyper-local insights  will be best positioned to navigate these evolving markets.

Stay informed by monitoring both suburban trends and neighborhood-level shifts to identify opportunities before competition increases.


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Ranked as a top 1% team in the Chicagoland market, Cory Tanzer and the Cory Tanzer Group specialize in the Chicago, North Shore, and Western Suburbs real estate market. With deep local market expertise and a proven track record, Cory and his team help clients buy and sell with clarity, confidence, and results.