Recovery Could Finally Boost Condo Market

CHICAGO—As reported in GlobeSt.com, last year around this time, experts from across the Midwest were predicting that the nation’s modest recovery would gain momentum in 2014 and increasingly drive growth in secondary markets. Those predictions were mostly accurate, and in 2014 the Chicago-area saw a strengthening for-sale market with home prices up as well as continued demand for new rental options, with class A downtown apartments averaging 93.8% occupancy. And once again, Chicago-area real estate experts are looking ahead to the next year with optimism.

Although demand for rental units is strong, for example, many feel condominium sales and pricing will see an uptick in 2015. “There’s strong demand, but new construction has been nearly non-existent since the downturn, and condo inventory is at its lowest level since tracking began in 1997,” says David Wolf, president of Related Realty. “That spells opportunity for developers, and we’re starting to see new projects announced.”