Suburban Chicago Investment Activity

- The Chicago suburban multifamily market is experiencing a significant uptick in activity, with a 40% year-over-year increase in total dollar volume through the third quarter of 2025. The number of transactions also rose by nearly 35% in the same period, signaling renewed investor confidence. The average price per unit in the suburbs climbed by 4.7% year-over-year to $146,068. - Des Plaines is demonstrating a dynamic housing market with the median sale price per square foot increasing by 6.9% recently, reaching $240. While the overall median sale price saw a decrease, neighborhoods like Ransom Ridge and Emerson Place show significant investment potential with median home values of $459,204 and $446,436, respectively. - In Forest Park, large apartment complexes are the most common housing type, making up over 40% of the village's housing units. The housing market is considered very competitive, with homes receiving multiple offers and selling in a median of 48 days. The median sale price for a home in Forest Park was recently reported at $310,000, an increase of 7.8% from the previous year. - For those looking to transition into real estate investment firms, key skills include proficiency in financial modeling software like Excel and ARGUS, a strong understanding of valuation methods, and the ability to analyze market data. Networking and strong communication skills are also considered essential for success in the industry. - Several local investors have found success in the Chicago suburbs. For example, Shantanu Kamra scaled his portfolio in the western suburbs to over 40 units while working a full-time IT job. Another investor, Ben Walhood, focuses on a fix-and-rent strategy for residential properties in working-class neighborhoods. - Publicly traded Real Estate Investment Trusts (REITs) offer a more passive way to invest in Chicago real estate. Major players with significant local holdings include Equity Residential (EQR), a Chicago-based company that is one of the largest owners of multifamily properties in the U.S. - To build capital for real estate investments, strategies range from traditional saving and selling existing assets to more creative options like refinancing properties to pull out equity, forming joint ventures with partners who have capital, and borrowing via private or hard money loans. For tax planning, investors can utilize deductions for mortgage interest, property taxes, and depreciation. A 1031 exchange is a powerful tool that allows for the deferral of capital gains taxes when selling an investment property by reinvesting the proceeds into a similar property. - The broader Midwest real estate market is seen by investors as a stable and consistent option, with sustained demand for rental housing. Post-pandemic trends show households moving towards well-located suburbs in search of more space and affordability, which is driving renter demand in these areas.