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[Arrieta Chesser]

Chicago House Sales For REI Firms Increasing: What Can This Mean For Your Business?

Since the beginning of 2018, Chicago has been experiencing an increase in the housing market. According to The Real Deal, "over the past year, Chicago's luxury apartment market has seen unprecedented demand from investors and developers alike." A few of the reasons for this boom include recent job growth increasing rental rates, and a insufficient supply of housing. One of the main reasons behind Chicago's recent real estate investment is its strong economic growth. In the last 14 years Chicago has created nearly forty thousand new jobs. The figure includes 10,000 new jobs created in February 2018 in particular. According to a study conducted by the University of Illinois at Chicago's Great Cities Institute, "the number one cause for this job growth is the city's booming real estate market."

In addition to an growth in demand for housing it is also the fact that the cost of renting apartments within Chicago has risen by 9% over the past year, according to Zillow. This trend is expected to continue, given that demand for real estate grows and supply remains limited. Yet, despite these elements there are some adverse aspects that are impacting Chicago's market. In particular, the city has been experiencing a significant lack of development and construction. According a report by the Urban Land Institute, Chicago "could stand to add more than 100,000 new homes" by 2026. Another advantage is that Chicago's economic growth has resulted in those renting becoming more educated and more wealthy, thanks to growing incomes. The amount of people who hold an education degree in Chicago is increasing by more than one percent every year for the past 14 years. This rise in the cost of housing as well as an increase in more educated renters have made Chicago an attractive rental market for investors.

In 2022 by 2022, the Chicago real property market is set to have a population growth rate of at least 20,000 annually. This population growth and the consequent increase in housing demand will drive up costs for rental and home units. It is estimated by Redfin, "if national trends continue, Chicago's median home price could reach $342,100 by 2022." This figure assumes that these trends continue. It does ignore any potential jobs growth or related issues that may arise. In addition to an rise in the cost of housing as well as rents expected to increase by 2.5 per cent. However, despite the forecast of rising prices for real estate due the strength of the economy and the stability of housing stock But there are other aspects that render Chicago's housing market insecure. For instance, many buildings in Chicago are in danger of becoming damaged. According to WBEZ, a local public radio station 60 percent of Chicago's towering buildings have undergone no major renovations since their construction. Many of these buildings were damaged by water and poor building conditions.

The absence of well-maintained housing in Chicago could affect Chicago's future development plans and real estate's boom. In particular, if a huge portion of rental homes of Chicago is damaged or in danger of destruction, the value of single-family homes will decrease as well. In spite of these problems affecting Chicago's real estate market, there are many advantages that make it attractive to invest in the city to investors. One of the main draws is that the market for housing in Chicago has experienced a rapid rate of growth and expansion over the past 10 years.

For instance, according to Curbed Chicago, there have been 9,573 condominiums that have been built in the city over the last nine years. Also according Curbed, according to Curbed, "there are currently 70 active construction projects in River North" for instance. These projects include new offices and residential buildings. In these three decades there will be an additional 2,500,000 square feet commercial spaces in Chicago's west Loop area alone. This commercial construction is expected to include new startup companies shops, retail outlets, and restaurants. Another reason to invest in Chicago real properties is that taxes are low in comparison to other cities. Based on a report by Trulia the median tax valuation per square inch of housing for residential purposes is $2.20. This is in contrast to a median that is $2.95 per square foot for San Francisco, California. Furthermore, in contrast to San Francisco or New York City there are a lot of apartments and houses are not subject to an occupancy tax or transfer tax.

Additionally to that, there are a variety of incentives for developers of real estate in Chicago. The Chicago Tribune, there are various incentives for real estate development companies in Chicago. One of them are the "Illinois Historic Preservation Tax Credit." This tax credit is granted for developers who want to refurbish properties constructed prior to 1955. Additionally, developers have access to the "Chicago Automatic Property Tax." Through this plan, house owners can apply for a cash loan from the city for the purpose of reducing the property tax. Furthermore, there are tax breaks available for movie and television productions that are filmed in Chicago. Through this program, television and film studios pay just 5% of their total business taxes at the municipal level , as opposed to the 25 percentage that are normally imposed on other enterprises. Like we said earlier, Chicago real estate market is expected to be booming over the next ten years because of an economic boom and a low availability of homes. While there are negative aspects which are creating problems in the housing market, investors are still attracted by Chicago's booming economy and many real estate incentives that have been put in to.

Additionally, Chicago has experienced several recent challenges. For example, in 2016, Chicago was hampered by an unofficial strike in the transportation sector that lasted nearly two full months. The strike impacted commuters as well as businesses. Another problem facing Chicago is that city officials are worried about a potential rise in crime rates. For instance there is a concern that the Chicago Police Department recently released reports that show that there was a 17% increase of murders during 2016 compared to the year 2015. This resulted in Chicago experiencing the deadliest year since 1997. If this pattern persists, it could result in people losing faith in the city and preferring to spend funds elsewhere. While these are negative effects on The city's economy, there's positives for investors that opt to buy Chicago real estate. A prime example is the strong job market as well as the limited supply of housing is expected to continue to push up the costs of houses and rentals. As we mentioned earlier, Redfin estimates that median home prices Click here! will be $342,100 by 2022.

According to a report released by the real estate research company Spruce Point Real Estate, the Chicago market is among the most attractive. This is likely because of several reasons, such as rising population numbers and a wide-ranging economy. In addition, Chicago is one of the few major metropolitan areas that hasn't seen an increase in housing prices in the last few years. These factors have prompted many real estate investment firms decide to buy Chicago real property. Investment firms in real estate are optimistic about the Chicago market due to its population growth, strong economy, and the growing job market. In addition, the city's strict regulations regarding zoning provide new opportunities for developers. These opportunities have led to an large number of small and medium-sized residential developments. Also, the insufficiency of affordable housing is the reason that top-end houses are increasingly sought-after.

In a housing market as tight as Chicago's, every opportunity that can generate real wealth is something worth being aware of. It is because the home market will not stagnate for long. The more attractive these properties increases, then the price of housing is expected to rise. Furthermore, the market's three-year stagnation of prices will begin to reverse itself. That is, in just a few years, a lot of homes in Chicago and across the nation will be worth more than they were when first bought. For investors who invest early enough and are able to take advantage of the declining prices and rising values which are predicted in real estate investments companies and other investors, they could earn substantial returns over time while also contributing to the development of the city's economy and housing market.

The biggest issue for investment companies in real estate is the Chicago economy will not see the anticipated growth in the next few years. This means that the population in the city would not increase as quickly as it could. This would delay new construction projects, which would in turn cause house prices to fall, and investment companies to lose funds. But given Chicago's record of expansion and development in the past several decades it is more likely than not that population growth as well as construction of homes will be at similar rates. Therefore, there's no better time than now to make an investment the real estate market of Chicago real estate, especially since it is still affordable.

To understand why real estate investment firms have put Chicago real estate on their map It is vital to analyze the state of the economy and its effect on developers. First, the city's growing workforce is predominantly on the technology sector. Marketing company IBISWorld claims that employment in this sector increased in 2014 by 3 percentage points over the course of 2015.