The Chicago real estate market is always evolving. The landscape and temperature of the city have drastically changed as the city and investors update older neighborhoods. Yesterday’s up-and-coming parish is now pricing out the young and working-class residents, who are moving into redeveloped neighborhoods in Chicago.

As a real estate investor, researching local markets and talking to homeowners takes a lot of time. The goal is to spot trends and find opportunities that competitors might miss. Read to learn some of our best tips for investing in Chicago real estate, and which neighborhoods to start your search.

3 Questions to Ask When Buying Property in Chicago

1. What investing opportunities are you looking for?

If your goal is to flip houses and maximize your ROI, focus on neighborhoods with high-potential properties. Renovating, or flipping, houses offers several opportunities. However, the market is more competitive and financing has become more difficult in 2024 compared to previous years. Be prepared to move quickly and offer attractive terms. Rising construction material and labor costs factor into estimating renovation budgets.

2. Who’s looking to rent, buy, or sell?

Research who’s moving in and out of the area to determine if you’d like to work in a neighborhood. If the demographics reflect young professionals are looking to rent or sell in the area, or new businesses are setting up shop, then the neighborhood is likely a good investment.

3. Where’s the next hot spot?

When buying property in Chicago, aim to invest in an up-and-coming neighborhood with steady price increases and low volatility. Compare home prices in surrounding areas to anticipate market changes. For example, when prices in Logan Square rose, many residents moved to nearby Humboldt Park, making it the next “hot” neighborhood.

Top 5 Best Places for Buying Property in Chicago

Long-time Chicago investors may start with popular neighborhoods like Logan Square or Humboldt Park. However, these areas have become highly competitive with a limited inventory of affordable properties.

Logan Square is now one of the most expensive neighborhoods in Chicago, which may result in a lower ROI for house flippers. Humboldt Park remains more affordable but is also one of the hottest investment markets, leading to significant competition.

What are the best places for real estate investing in Chicago? Here are our top five picks for the best places to buy property:

1. Roger’s Park

Roger’s Park has emerged as a prime market for new real estate investors. Home prices in this neighborhood have surged, with an overall increase of 17.1% over the past year.

Despite this, Rogers Park still offers affordable options, particularly in older single-family homes and small apartment buildings. These properties often feature sturdy construction and quality materials, making them excellent candidates for house flipping with modern upgrades.

The area attracts young families, driving demand and increasing property values. Additionally, the nearby landmarks of Loyola University and Lake Michigan positions Rogers Park to be a promising rental market.

With a competitive market where 52% of homes sell above asking price, Rogers Park offers opportunities for real estate investors looking to renovate fixer-uppers.

2. Englewood

Englewood, sometimes seen as a risky investment, is undergoing significant changes that create opportunities for savvy investors. Home prices have risen by 16.3% since 2023, with the median home price now just under $180K.

The neighborhood has seen varying price increases depending on the type of home. For example, two-bedroom homes have seen a 78.6% increase. Despite these increases, Englewood still offers numerous distressed properties at lower prices, presenting a chance for profitable investments.

This neighborhood has made improvements in local infrastructure, including renovated “L” stations and a new STEM school. These changes signal positive changes in the neighborhood and indicate a neighborhood on the rise. Investors should take note of Englewood’s potential for growth and the increasing demand for properties.

Although 47% of homes sold were below the asking price last month, this market presents a unique opportunity for those willing to take calculated risks.

3. Avondale

Avondale is quietly transforming into one of Chicago’s most promising neighborhoods for real estate investment. Home prices have increased by 5.3% over the past year, with the median home price now at $500,000 and a median price per square foot of $274.

The majority of Avondale residents are renters, with rental prices average $1,900 per month, higher than the state average. This urban/suburban blend appeals to those looking for a quieter lifestyle while maintaining access to public transportation and interstate.

The neighborhood has seen increasing property values, and investors can benefit from both flipping homes and entering the rental market. With its strategic location and ongoing development, Avondale could be a lucrative option for Chicago real estate investors.

4. Austin

Austin continues to be a hot spot for real estate investment, with home prices up 13.9% from 2023. The median home price in May 2024 was $300,000. The market has seen a 5% increase in the number of homes sold.

Austin’s competitive market means that some homes receive multiple offers, often selling for around the list price and going pending in about 63 days. Hot properties can sell for about 3% above the list price and go pending in around 35 days. This trend indicates a strong demand, making Austin an attractive area for real estate investors looking to flip homes quickly and profitably.

5. Bronzeville

The housing market in Bronzeville offers a mix of large single-family homes, spacious rowhomes, and historic greystone buildings, interspersed with newly developed properties. The neighborhood north of 47th Street and east of the Dan Ryan features various housing complexes and condominiums, with convenient access to public transportation routes along Cottage Grove and Martin Luther King Jr. Avenues.

Although Bronzeville is slightly less expensive than neighboring areas like Kenwood, home prices increase closer to the lakefront. The neighborhood offers properties ranging from $41K to $1.8M, Rental prices range from $1.03K to $7.8K.

Bronzeville’s real estate prices are comparable to those in McKinley Park and Douglas but more affordable than Bridgeport and Pilsen. With such a variety of house types and locations, there are favorable opportunities for the budget-conscious investors and veteran investors looking for luxuries properties.

Additionally, its location allows for a quick 17-minute commute to Downtown Chicago. This blend of historical charm, cultural vibrancy, and ongoing development makes Bronzeville a promising area for real estate investment.

Find Easy Real Estate Investing in Chicago

The Chicago real estate market is ever-changing, making it crucial to stay ahead of trends. As a new investor, navigating diverse neighborhoods can be challenging. Experience is key in Chicago’s real estate investing. The more time you spend in its neighborhoods, the better you’ll spot opportunities. Becoming a HomeVestors® franchisee can fast-track this knowledge.

As a franchisee, you’ll have a HomeVestors® Development Agent as your mentor and guide. They will help you find the best investment properties, support you through your first deals, and boost your confidence to grow your business. Plus, the “We Buy Ugly Houses®” marketing campaign provides leads on distressed properties in Chicago.

Considering Chicago’s median home sale price of $365,000, having expert guidance and a strategic approach is essential for successful investments.

Ready to find the best places to buy investment property in Chicago with HomeVestors®? Reach out today to learn more about becoming a franchisee.
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