In Chicago When the Real Estate Market Rebounds – Which Chicago Neighborhoods Will Again Be Hot?
In Chicago When the Real Estate Market Rebounds – Which Chicago Neighborhoods Will Again Be Hot?
EXPERTS POINT TO HOUSING STOCK NEIGHBORHOOD AMENITIES PROXIMITY TO PUBLIC TRANSPORTATION!
Here in the City of Chicago the last housing boom turned many previously-lackluster neighborhoods into hotbeds of activity – and Real Estate Appreciation!
The Chicago Neighborhoods of Logan Square Bucktown Albany Park Irving Park Uptown Edgewater Pilsen Bronzeville and others – all benefited when condos and home renovations were king and neighborhood shopping and entertainment districts started to blossom.
Then came the Mortgage Crisis! The Credit Crisis! Increasing joblessness economic uncertainty! Real Estate Prices – at one time unstoppable in a positive direction started to stumble!
Median Prices on the Near North Side of Chicago – down 8.07% during the First Quarter 2009 versus the First Quarter of last year. In the Lakeview Neighborhood of Chicago – median price down 6.15%. West Town including the chic Bucktown Neighborhood – down 11.08%. Even condos in the Chicago Loop took a price hit – median down 15.25% year-over-year!
Everyone knows of course that the Housing Market Here in Chicago is in a Down Cycle – one that will turn positive at some point although no one can pinpoint exactly when.
But when things do turnaround which neighborhoods will then show the greatest new appreciation?
In a recent Chicago Tribune article reporter Ellen James Martin pointed to several elements that point to strong rebound potential. I have extended her thoughts here and applied them to Chicago and Chicago Neighborhoods.
Historically three things have tended to foretell which city neighborhoods take off the highest during a housing resurgence –
1. Proximity to Public Transportation! From the days when the famous Chicago Elevated Lines were new – over 120 years ago – the growth of public transportation led the way to the next growing neighborhood. The Brown Line L (formerly the Ravenswood Line) spurred growth in the Albany Park and Lincoln Square Neighborhoods after the trains started running in the early 1900’s.
The Blue Line L now running down the Kennedy Expressway to O’Hare Airport sparked growth in the Northwest Side Chicago Neighborhoods of Jefferson Park Norwood Park and Edison Park among others.
The same is true today – Chicago Neighborhoods located close low-cost CTA transportation will likely rebound fastest.
2. Neighborhood Amenities! Back in the day here in Chicago every neighborhood shopping district had its own men’s and women’s clothing stores. Furniture stores. Groceries. Eateries and Bars. Jewelry Stores. You really didn’t have to leave your neighborhood to enjoy virtually all of the basics and the luxuries of life.
Today however most folks get in their cars to travel to shopping malls or big-box stores to shop and save. The neighborhood grocery store and bakery – all but gone in most Chicago Neighborhoods.
But different kinds of neighborhood attractions remain. Nightlife! Top Restaurants! Accessibility to Parks and The Chicago Lakefront! Summertime Street Festivals! These often define the lifestyle in a neighborhood and attract vibrant young families who make their homes there. And patronize businesses nearby – thus feeding neighborhood growth!
3. Available Housing Stock! In virtually all Chicago Neighborhoods the old becomes new once again! Older apartment buildings are rehabbed into luxury condominiums – today with less panache as in recent boom times but a resurgence will likely spark condo development yet again! Old single family homes are retrofitted with the latest comforts of the 21st Century while others are more modestly upgraded.
In newer Suburban Communities growth during boom times is often sparked by new housing developments. Subdivisions! And brand-new highly-upgraded homes. In the City of Chicago it’s the classic exterior elements that make the buildings attractive to potential buyers with the opportunity to upgrade to new inside. Neighborhoods with this attractive older housing stock will likely see quick rebound once the Real Estate Market as a whole does.
The Chicago Real Estate Market will come back folks! And in our many neighborhoods close to the transportation amenities and housing stock that make us unique re-growth will likely be strong!
DEAN MOSS & DEAN’S TEAM CHICAGO
