Chicago, IL Housing Market
AI-powered market intelligence for the Chicago-Naperville-Elgin, IL-IN metro area.
PropertyIQ Scores
Chicago, IL Market Analysis
Market Overview
Chicago’s residential market scores 92 out of 100 on the PropertyIQ index, a strong reading. The main drivers are 12-month home value momentum of 9.65%, 3-month momentum of 0.53%, median days on market of 35 days, and a 14.1% share of listings with a price cut. Together, these describe a market with meaningful annual appreciation and relatively quick turnover, though the smaller 3-month gain points to slower recent momentum. A separate raw year-over-year home value change is listed as $4; because the 12-month home value momentum of 9.65% is a top score driver, this analysis uses the percentage-based driver as the primary appreciation signal.
Compared with Illinois state averages, Chicago is a premium market. The median home value is $360,262 versus $299,900 statewide, about 20% higher. The rent index is $2,253 versus $1,227, about 84% higher. Median household income is $88,850 versus $81,702, about 8.7% higher. Unemployment is 5.3%, slightly above the state average of 5.1%. Inventory is 14,609 homes for sale, and population growth is listed as N/A, so no benchmark comparison can be made for those figures. Still, the score and its leading drivers support a strong overall position.
Key Trends
One clear trend is strong annual appreciation with cooling short-term momentum. The 12-month home value momentum of 9.65% is the top score driver, while the 3-month rate is 0.53%. That gap suggests values are still up year-over-year, but the fastest pace of appreciation may be leveling off.
Another trend is a significant rental market premium. Chicago’s rent index of $2,253 is about 84% above the state average of $1,227, while the median home value is about 20% above the state average. That relationship strengthens the case for income-oriented investors and may also push some renting households toward buying.
The market is also moving quickly without widespread discounting. Median days on market is 35 days, and only 14.1% of listings have a price cut. Both are top score drivers. These figures indicate that well-priced homes are selling relatively quickly and most sellers are not cutting prices aggressively, though no state benchmark is provided for either metric.
Affordability is tighter than the state-level comparison suggests. Median household income is about 8.7% above the state average, but the median home value is about 20% higher. That produces a higher home value-to-income ratio in Chicago than in Illinois overall, meaning buyers need more income or financing relative to value despite higher local incomes.
Who Is This Market For
This market suits move-up and lifestyle buyers with incomes near or above Chicago’s median household income of $88,850. They are better positioned to absorb the $360,262 median home value, though affordability is tighter than the state norm.
Rental property investors also fit well. The rent index of $2,253 is far above the state average of $1,227, and the 12-month home value momentum of 9.65% provides an appreciation tailwind. However, the 3-month momentum of 0.53% suggests investors should focus on cash flow and longer holding periods rather than short-term flipping gains.
Sellers and trade-up buyers benefit from a median 35 days on market and a 14.1% price cut share, which indicate relatively fast sales without heavy discounting. First-time buyers may face more challenges because home values are well above the state median and incomes are only modestly higher. The data does not break out entry-level price tiers, so starter-home affordability cannot be assessed directly from the provided figures.
Outlook
Chicago’s fundamentals point to continued stability with a moderating appreciation pace. The 9.65% 12-month momentum and 35-day median days on market support the 92/100 score, while the 0.53% 3-month momentum and 14.1% price cut share suggest a market that is normalizing rather than accelerating. The rent index of $2,253 remains well above the state average of $1,227, which may support rental demand. Unemployment at 5.3% is slightly above the state’s 5.1%, and population growth is unavailable, so the data do not show a clear demographic tailwind. Inventory of 14,609 homes for sale lacks a historical benchmark, so it cannot signal tightening or loosening on its own. Overall, the data support moderate strength ahead, with less momentum than the trailing 12-month gain.
AI-generated analysis based on current market data. Last updated September 7, 2026.
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Chicago, IL market data
Chicago, IL Housing Market Overview
Chicago, IL's median home value is $360K, up 9.7% over the past year. Homes here sell in a median 35 days. Its PropertyIQ Score of 92 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
Whether you're considering buying a home, investing in rental property, or weighing entry timing in the Chicago, IL area, the PropertyIQ Score gives you a single, data-first read on relative market strength. It is validated against actual market outcomes from 2001 to 2023, with a positive score-to-return relationship in every validated year across IL and every other US state.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Chicago, IL's PropertyIQ Score of 92 ranks among the Midwest's stronger demand signals.
For the Chicago, IL market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been positive, with home values up 9.7% over the past year.
Explore the interactive map to see how Chicago, IL compares to neighboring metros, or view the full market dashboard for detailed analytics including time-series trends, score breakdowns, and AI-generated market reports.
Counties in the Chicago, IL metro area
ZIP codes in the Chicago, IL metro area
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Chicago, IL a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Chicago, IL currently scores 92, a very strong-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $360K, up 9.7% over the past year. So whether Chicago, IL is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Chicago, IL?
Chicago, IL's PropertyIQ Score is 92, indicating very strong momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 92 places Chicago, IL above its state benchmark.
Are home prices in Chicago, IL rising or falling?
Home prices in Chicago, IL are rising. Over the past year, the median home value increased 9.7%, reaching $360K. Over the latest three months, values moved up 0.5%, a sign near-term demand remains firm. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Chicago, IL's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Chicago, IL?
In Chicago, IL, homes sell in a median of 35 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 14% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Chicago, IL market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.