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Is There A Housing Bubble In Chicago?

By Jennifer Lane

I am asked daily if there is a bubble in Chicago and when it’s expected to burst. Simply said, there is NOT a bubble in Chicago. The entire city of Chicago, comprised of 77 different neighborhoods, has not experienced a 30-40% increase in home values in a short period of time (6 months-2 years) across the board. So, NO there is not a bubble in Chicago!

Bubbles are in areas where property values have rapid appreciation in a short period of time across several cities or counties within a state. For instance, southern California, Las Vegas, areas in Florida and Arizona are facing major depreciation and surmountable foreclosures.

Too, areas where median income and median home prices are grossly different, a bubble occurs. When housing costs increase vastly more than the average person earns a bubble can occur. The homes being built and developed aren’t bought because families cannot afford them. So, inventory levels increase. Eventually, prices must drop in order for people to qualify and afford to buy.

Many Chicago neighborhoods have had rapid appreciation due to growing populations and the face of the area changing, but a bubble isn’t generally caused due to gentrifying. Folks are realizing Chicago is a wonderful city to live with opportunity to make life what you wish and at a reasonable price. Take me for an example; I am part of Chicago’s growing population.

Remember, I am from the hills of Tennessee, and am reminded of it daily as I’m questioned about my accent. This leads people to ask why I moved to Chicago and if I’ve made it home. My answer is, “It is the most affordable, big city in the country and offers everything that all other metropolitan cities do with the exception of mountains. Yes, I’ve made Chicago my home and don’t plan to move on my own recognizance!”

Listen Chicago; there is no bubble that I am aware of. Buyers are still buying, and sellers are still selling. The process is just taking a bit longer as there are more homes to choose from. If you are curious about Chicagoland homes, take a tour on my website, www.JenMLane.com, where you can sift through all Chicago’s available properties.

About Jennifer Lane:
Jennifer brings a business approach to real estate. She studied business in college and worked in major corporations having exposure to every aspect of a company from purchasing and marketing to design, production, selling and everything in between. She obtained a real estate license for personal use to buy, remodel, and sell. It wasn’t long after using the knowledge for herself and investors that she realized she enjoyed real estate and could make it her career. She always wanted to own and run her own company and real estate became the answer. Yes, she runs her own company as Keller Williams allows her to operate her business and work with her clients as she sees fit, all under a Realtor’s® code of ethics, of course. She can market Jennifer M. Lane or her practice in anyway she wishes, so you are empowered with information she compiled to aide your search. Every piece of material you are given is created from her experience, research, and knowledge.

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