Published October 9, 2025

Chicago Real Estate Market Update: Fall 2025

Written by Daniel Fitch

🏙️ Chicago Real Estate Market Update: Fall 2025

🌆 Chicago Market Overview

As fall settles into the Windy City, the Chicago real estate market is showing resilience despite higher mortgage rates. Home values continue to hold steady, while demand remains strong in affordable and transit-friendly neighborhoods.

Median Home Price (Citywide): $359,000 (↑ 2.2% YoY)
Average Days on Market: 40 days
Active Listings: +7% since summer
Average Rent: $2,475 (↑ 3.9% YoY)

Chicago’s housing market continues to balance between motivated buyers seeking long-term value and sellers adjusting expectations to attract offers.

🏠 What Buyers Need to Know

With mortgage rates still hovering in the mid-6% range, today’s buyers are looking for value and stability. Neighborhoods offering easy commutes and strong community amenities — like Jefferson Park, Bridgeport, and Portage Park — are seeing consistent activity.

Tips for Buyers:

Consider properties that have been on the market over 30 days—there’s room to negotiate.
Work with a local agent who understands pricing trends in your target neighborhood.
Explore first-time buyer programs offering down payment assistance across Illinois.

🏡 What Sellers Should Watch

Sellers can still expect strong demand if their property is priced correctly and presented well. Homes that are move-in ready—especially with updated kitchens and energy-efficient features—are attracting the most attention.

Tips for Sellers:

Staging and professional photography make a major impact.
Price based on recent neighborhood comps, not last year’s highs.
Highlight outdoor space, parking, or home office potential—these remain top buyer priorities.

📍 Hot Neighborhoods This Fall

Bronzeville: Still one of the best-performing areas for investors and first-time buyers.
Avondale: Growth in new construction and multifamily developments.
Pilsen: Popular with creative professionals seeking cultural energy and walkability.
Rogers Park: Consistent rental demand with strong community ties.
Naperville: Suburban favorite for families seeking top schools and quality of life.

🔮 Looking Ahead

Experts predict a stable market through early 2026, with home prices appreciating modestly. Chicago’s affordability relative to other major metros continues to draw new residents, making the city a strong long-term investment.

Whether you’re buying your first home, upsizing, or investing in rental property, this fall could be the ideal time to make your move before winter inventory tightens.