Sales prices in the Greater Chicago area have increased dramatically in recent years, and many new businesses are looking for a place to set up shop.
The median price of a home in the city rose to $1.4 million in December, from $950,000 in November, according to the Real Estate Board of Chicago.
The price of an average Chicago home jumped by $900,000, to $836,000.
The median price in the suburbs, the most expensive part of the city, rose by $270,000 to $770,000.
“You’ve seen a lot of price increases over the last two or three years, which is good, but we’re seeing a lot more of those increases than in the past,” said Mike Bohn, CEO of The Bohn Group, a property investment management firm.
“A lot of these properties have been very successful and the people that bought them have been able to capitalize on the appreciation in the housing market,” Bohn added.
He said he expects prices to remain high until at least 2020, when a housing bubble will burst and people will look to buy again.
“We’re not going to see the typical home price bubble that we’ve seen in the last few years,” he said.
Bohn said the real estate boom will eventually be over and the city will revert to a market that is still experiencing housing busts.
Chicago has been on a downward trajectory since the housing bubble burst in 2007, with the median home value in the area falling by nearly 10% in that period, according the Chicago Real Estate Council.
Bond market in Chicago and the MidwestThe Chicago area has a large population of renters, but that number is expected to continue to decline as the housing and rental market continues to tighten.
“I think it’s just going to be the new renters and people who are coming into the market that will drive prices up, Bohn said.