Chicago Real Estate Market 2026: An 83 Score at $350,000 That Most Investors Overlook

Chicago is the third-largest metro in the United States, with over 9.3 million people and a median listing price of $349,950 as of February 2026. It does not get the same investor attention as Austin or Phoenix. Based on the PropertyIQ data, that might be an oversight.

PropertyIQ scores Chicago an 83 out of 100 as of February 28, 2026.

The Demand Signal Is Strong

Chicago's pending-to-active ratio is 0.8434 as of February 2026 — for every 100 homes listed, 84 are going under contract. That is one of the highest absorption rates among major metros in the country. Homes average 40 days on market. The sale-to-list ratio is 99.9% as of November 2025.

Low Overvaluation

Chicago is only 7.4% overvalued relative to local fundamentals as of February 2026. The income needed to buy at current prices is approximately $93,015. The median household income is $88,850 (2023 Census). The gap is narrow enough that a significant portion of local households can qualify to buy.

Inventory Is Tightening

There are 11,833 homes for sale in Chicago as of February 2026, down 1.06% year over year. Price cuts are low at 10.31%. New listings are not meaningfully outpacing absorption, which keeps the supply-demand balance favorable.

The Caveat

Chicago's unemployment rate is 4.5% as of December 2025. Population trends in Illinois have been net-negative. Zillow forecasts 2.3% appreciation. The 5-year home value appreciation is only 2.93% — Chicago did not see speculative run-ups, which is precisely why the overvaluation is minimal.

The Investor Case

For investors focused on demand dynamics and reasonable entry prices, Chicago presents a market where strong absorption (84% pending ratio), minimal overvaluation, and affordable pricing combine with a score of 83. Rent averages $2,115/month as of December 2025 against a Zillow median value of $336,963 as of January 2026.

The market Chicago most resembles in the current data is Kansas City: a large, economically diversified Midwest metro where prices did not run away during the pandemic cycle and where demand fundamentals remain intact.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Rent and forecast data as of December 2025. All data for informational purposes only.