The Chicago Real Estate Market After COVID-19
Many are left wondering how the Chicago real estate market will rebound from months of closures and low traffic. With coronavirus vaccination being sporadically implemented and the lifting of pandemic restrictions sketchy, this concern is even more prevalent.
The latest Chicago data may be a positive sign of downtown’s ability to bounce back.
COVID’s Impact on the Chicago Real Estate Market
Like many cities across the country, businesses and residents of downtown Chicago have been left wondering what post-COVID life will be like once patrons can safely return to businesses that were shut down or greatly diminished in scope by pandemic regulations.
At a high level, it appears that Chicago’s love of downtown hasn’t been lessened by the pandemic. This is primarily attributed to the metropolitan real estate trends, including rising home sales, increasing home valuations, and soaring leases and subleases. These factors represent a gauge for rebound potential.
The Chicago Real Estate Market is the Measuring Stick for Downtown Culture
An analysis by firm Cushman & Wakefield on real estate markets in Chicago showed no evidence of an ‘out-migration’ (moving from downtown to the suburbs) for businesses. Essentially, many businesses decided to sign shorter-term leases and stay put when their leases came up during the pandemic.
This does not mean that downtown Chicago real estate is without its struggles, but it does show positive signs for the future of downtown culture and business with rents still falling.
Downtown Chicago’s Home Buying Market
Many believe that the ‘suburban migration’ trend could have been driven by “pandemic worry” or low-interest rates, believing that the coronavirus pandemic simply expedited home sales on properties that would have occurred a few years down the road, regardless.
Suburban migration was also bolstered by many Illinoisans working from home. As a result, proximity to the workplace saw reduced importance. But, as things potentially return to normal again in the middle of 2021, many expect the return to the workplace coinciding with a return to metropolitan cities. A decline in urban rent supports this theory.
Though the pandemic—and its continuous impact on cities across the country—is still far from over, there are signs of recovery in Chicago. The coming months will provide a clearer idea of its future direction.
To learn more about the Chicago real estate market, schedule an appointment with a real estate attorney at Lee Scott Perres, P.C.
