North Shore Hot, Downtown Condos Softer

The divergence in Chicago's luxury market is starkly illustrated by inventory levels. Across North Shore communities like Winnetka and Glencoe, the supply of single-family homes priced between $1-2 million is exceptionally low, fueling intense buyer demand. In contrast, the overall days on market for Chicago luxury properties has more than doubled to 323 days, indicating a significant slowdown for sellers without premier assets. This downtown condo "softness" is highly selective. While average listings face price discipline, turnkey units in high-demand buildings like the Waldorf Astoria, Park Hyatt, and St. Regis are moving quickly with minimal negotiation. Buyers are willing to pay a premium for move-in-ready condos with exceptional views and finishes, creating a distinct market tier. The for-sale market dynamics are a direct catalyst for the luxury rental sector. With 30-year fixed mortgage rates forecast to remain in the low-to-mid 6% range through 2026, the barrier to purchasing remains high, pushing many would-be buyers into high-end rentals. This trend is a key driver of demand for premium multifamily properties. This sustained rental demand is reflected in pricing. The average rent in the Gold Coast has increased 5.08% year-over-year to $2,550, with 62% of all households in the neighborhood being renter-occupied. Looking ahead, the rental market's strength is underpinned by a lack of new supply. Chicago has the lowest construction pipeline among major U.S. markets, with 2026 set to have the fewest new apartment completions since the Great Financial Crisis. This supply shortage is projected to fuel further rent increases. The Chicago multifamily market saw 4.6% year-over-year rent growth in the third quarter of 2025, with an additional 3% growth forecasted for 2026.