2026 Starting Out With a Bang!

Chicago’s housing market continues to defy national trends. While many U.S. metros are cooling, Chicago home prices are projected to keep rising through 2026.

🔹 Prices Expected to Rise 4.4% in 2026
Realtor.com forecast shows Chicago home prices increasing at nearly double the national pace. Limited new construction remains the biggest driver—Chicago consistently ranks near the bottom of major U.S. cities for new housing production.

🔹 Volume May Dip
Sales activity expected to fall about 2.3% as buyers compete for scarce inventory.

🔹 Chicago Leads Nation in Recent Price Growth
Chicago posted the fastest home‑price growth of all major U.S. metros, prices up 5.83% year-over-year—far above the 1.36% national rate.

🔹 Mortgage Rates Ease Slightly
Rates expected to average 6.3%, down from 6.6%. While not a dramatic drop, buyers largely adjusted to rates above 6%.

🔹 Downtown Poised for a Comeback
Gold Coast, River North, the Loop may see renewed demand in 2026 as buyers look for value and convenience.

🔹 North Shore Continues Strong Momentum
High-end suburbs—especially Winnetka, Highland Park, surrounding areas—projected to keep rising, fueled by lifestyle amenities and continued interest.

🔹 Affordable Areas Heating Up
Lower-cost neighborhoods are seeing some of the strongest price appreciation as buyers seek affordability. Investors and owner‑occupants are active.

Bottom Line

• Sellers: It’s still a strong pricing environment—especially if your home is move‑in ready and well‑located.
• Buyers: Expect competition, but opportunities remain in downtown and emerging neighborhoods.
• Overall: Chicago continues to show steady, resilient growth, bucking the national slowdown.