New wind in the sales? Chicago's 2024 housing market
Tackling Chicago's housing shortage, one project at a time
What's the Point?
Most housing market predictions point to a possible dip in interest rates in 2024, fueling anticipation that Chicago’s housing market will experience a subsequent, if modest, increase in activity. Yet inventory remains extremely low compared with pent-up demand.
A close-up on Chicago’s housing market outlook
Good news first: Industry insiders in Chicago real estate are forecasting a subtle departure from the market’s current stagnation. While there’s no way to be sure about the future of rates, the latest housing market predictions for 2024 project lower mortgage rates, which should help residential sales inch back up.
The elephant in the room, however, is the fact of Chicago’s persistent housing shortage. Among other impacts, the city’s housing shortage means buyers can expect higher price tags on properties that do exist.
How serious is the shortage? According to Hines data quoted in Axios, Chicago needs 142,000 more homes to meet residents’ needs. Hines drew this conclusion by using Census Bureau and Moody's data to compare the stock of existing homes, either to rent or buy, with the population's housing demand. (Their analysis included housing units as defined by the census, which means dorms, skilled nursing facilities or other group quarters arrangements are not reflected in the numbers.)
Unfortunately, the gap won’t be filled in the near future, given apartment construction has been scaling back in Chicago in recent years.
Building possibility with sustainable, placemaking design
It is clear that Chicago’s residential market needs smarter, better housing solutions moving forward. While no single housing development can offer a silver bullet for the shortage, today’s most visionary projects can help reveal a better way forward.
Take Wolf Point, for example. Situated in the last prime riverfront location at the heart of popular downtown neighborhoods and transportation choices, Wolf Point’s three towers embody the future of coveted live-work-play spaces. Striking design connects indoor and outdoor experiences, from view corridors with sweeping skyline views, to an inviting riverwalk and four-acre urban park complete with cherry blossom trees. And as part of Hines’ focus on sustainable building, the multifamily towers – Wolf Point East and Wolf Point West – have both been certified LEED CS Silver. Salesforce Tower Chicago is currently pursuing LEED certification for both Core & Shell and Commercial Interiors.
“It’s a privilege to be able to help expand the City’s housing supply with select residential projects that enrich the communities where they stand,” stated David Bach, Hines managing director in Chicago. "At Hines, we are dedicated to fostering thriving communities by providing spaces that enhance individual well-being while contributing to a healthier environment and neighborhood—core values I know resonate with many of my fellow Chicagoans, too.”