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Condo Market Slowly Getting Unstuck

Lenders have been cautious, but recent successes have started loosen things up.

chi-DavidWolf3 (3) David Wolf, president of ON Collaborative, says there is a lot of demand, and developers want to build.

CHICAGO—The Chicago region’s incredibly active apartment market has received a great deal of attention in the past few years. Much of the discussion has centered around when the number of new rental units hitting the market will finally outrun the currently healthy demand. There has been far less chatter about the market for condos. Many developers and lenders were spooked by the sector’s collapse during the Great Recession, and decided to concentrate their efforts in the rental market. But conditions may be changing.

“There has been a limited supply of new condos built,” David Wolf, president of ON Collaborative, tells GlobeSt.com. Most of the recent construction projects were small in-fill projects, or handfuls of ultraluxury downtown projects, along with some luxury projects in the West Loop and other neighborhoods on the downtown’s periphery. But a restrictive lending environment and high construction costs have kept the brakes on.

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Brian J. Rogal

Brian J. Rogal

Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.

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