The Chicago Housing Market Just SHIFTED & Here's Why

Wondering if Chicago’s housing market is in crisis? The data tells a completely different story. While the city cools, Chicagoland’s suburbs are in a full-blown bidding war. In this video, I break down the 2025 Chicago housing market trends, migration shifts, and strategies that buyers and sellers can use to win in today’s competitive market.

If you prefer reading, here are the cliff notes ⬇️

• City vs. Suburb Market Divide: Chicago’s city housing market has cooled, with home prices rising just 6.3% year-over-year and condo prices up 7.5%, while suburban markets like Naperville and Oak Brook are seeing double-digit gains and intense bidding wars due to low inventory and high demand.

• Migration is Fueling Suburban Growth: Despite Illinois’ ongoing population loss, many Chicagoans are simply relocating within the region moving from the city to high-demand suburbs like Frankfort, Mokena, and New Lenox for better schools, more space, and newer homes at competitive prices.

• Inventory Tells Two Stories: Suburban inventory has dropped to under two months’ supply, creating a strong seller’s market. Meanwhile, downtown condos are taking longer to sell, giving buyers more negotiation power on price, closing costs, and repairs.

• Affordability and Creative Financing: Rising mortgage rates have reduced buying power, pushing more people to explore creative financing options like 2-1 buy-downs, temporary rate reductions, and local down payment assistance programs to make ownership more affordable.

• Winning Strategies for Buyers and Sellers: Suburban buyers need to move fast and come fully pre-approved, while city condo buyers can negotiate better deals. Sellers, especially in competitive suburban markets, should price strategically and consider offering rate buy-downs to attract more offers.

Hope this was helpful!

John Sintich, Realtor® 

Keller Williams Preferred Realty

708-612-0644