The Chicago Real Estate Market: Summer 2025 Update

Chicago’s real estate market has always been a fascinating mix of old-world charm and big-city ambition. As we settle into the summer of 2025, the Windy City’s housing scene is buzzing with activity, and whether you’re a buyer, seller, or just a curious local, there’s plenty to talk about. Let’s dive into the latest trends and numbers shaping Chicago’s real estate landscape.

Inventory: A Market in Motion

One of the standout stories this year is the return of inventory. After several years of tight supply, Chicago’s housing stock has increased by about 12% compared to last summer. This means more choices for buyers and a bit less stress for those hunting for their dream home. While certain neighborhoods—think Lincoln Park and the West Loop—are still highly competitive, the overall market is less frenzied than in the peak pandemic years.

Home Prices: Steady but Still Rising

Median home prices in Chicago have risen modestly, up about 4% year-over-year. The median sales price is now hovering around $355,000 for single-family homes and $290,000 for condos. This steady climb signals a healthy market—prices are appreciating, but not at the breakneck pace that can push buyers out. Sellers, meanwhile, are still seeing solid returns on their investments.

Days on Market: Homes Moving Faster

Homes in Chicago are selling faster than last year, with the average property spending just 34 days on the market—a 10% decrease from 2024. Well-priced, move-in-ready homes, especially in popular neighborhoods like Lakeview and Logan Square, often receive multiple offers within the first week. If you’re thinking of selling, this could be your moment.

Interest Rates: A Balancing Act

Mortgage rates have held steady in the 6.25% to 6.5% range for a 30-year fixed loan. While higher than the ultra-low rates of a few years ago, these rates haven’t dampened buyer enthusiasm as much as some predicted. Many buyers have adjusted their expectations, focusing on what they can comfortably afford and planning to refinance if rates drop in the future.

Rental Market: Hotter Than Ever

If buying isn’t on your radar, you’re not alone. The rental market in Chicago is sizzling, with average rents up about 7% compared to last summer. Downtown high-rises and trendy neighborhoods are seeing especially high demand, driven by young professionals and new arrivals drawn to the city’s vibrant culture and job market.

What’s Next?

Looking ahead, most experts predict a stable market for the rest of 2025. Inventory is expected to continue its gradual rise, and home prices should keep appreciating at a moderate pace. Chicago remains a city of neighborhoods, each with its own unique story—and whether you’re buying, selling, or renting, there’s never been a better time to explore what the city has to offer.

Thinking about making a move? Reach out for a personalized look at your options in today’s dynamic Chicago real estate market!