2024 Real Estate Market Recap: Resilience, Change, and Chicago’s Luxury Appeal

A year that no one could have predicted. So far the real estate market has exhibited notable resilience and complexity. 2024 was one for the books. It was an election year with an election like no other. Several climate-related natural disasters across the globe and here at home. Swings in the financial markets that left many on the sidelines wondering what the next call would be. Despite this uncertainty, homeowners were reminded of the enduring joys of having a place to call their own. Owning a home is more than a financial investment; it’s a deeply personal milestone, offering stability and a space to create lasting memories. This emotional connection continues to drive homeownership, even amidst market fluctuations.

Home Sellers, "Start Cutting Prices Or It's Going To Be A Long Winter,
Says Reventure CEO. - Benzinga

So said the headline. In 2024, unsold inventory increased by nearly 27% compared to last year. While Chicago remains a market with relatively tight inventory, we’ve observed an upward trend even here. Nationally, inventory is expected to rise by an additional 15% in 2025, marking the fourth consecutive year of growth in available homes. This increasing inventory signals a shift toward a more balanced market, offering buyers more options and potentially easing the competitive pressures of recent years.

Chicago-area Homes Under Contract Surged in November - Crain's Chicago

Despite the rise in inventory, demand for homes remains strong in many areas. November 2024 data showed a spike in Chicago-area homes under contract, reflecting the adaptability of buyers and sellers alike. Well-priced properties in desirable locations continue to attract attention, even as the broader market adjusts to changing conditions. The Chicago and Mid-West markets remain affordable. Check out the least and most affordable city markets below.

Notable transactions in 2024 were the sale of a custom mansion at 1932 N. Burling St. in Lincoln Park for $15.25 million. This 25,000-square-foot home is on an unparalleled 177' x 149' parcel spanning over eight city lots. Another record-setting sale in 2024 occurred in Bucktown, where a tech executive sold a home for $5.3 million, marking the most expensive residential transaction in the neighborhood’s history. This modern property highlights Bucktown’s growing appeal. The $19 million deal for the top two floors – a combined 15,000 square feet of unfinished space complete with plans for a private rooftop pool and pavilion at 9 West Walton.

These sales along with others like them underscore the continued appeal of Chicago’s luxury market, showcasing its ability to attract high-end buyers even amid market fluctuations.

Bucktown Sale. Credit VHT | Crain's Chicago

9 West Walton, Chicago

Will home prices crash in 2025? Experts say... 

On the national stage, discussions about a potential "2008-style" housing crash in certain cities have raised concerns. Experts suggest that while some regions may face sharper corrections, a nationwide crash is unlikely. Chicago’s market fundamentals remain solid, supported by diverse economic drivers and steady demand, indicating a more measured pace of price adjustments. Home affordability remains one of the most pressing issues today and will continue to be at the forefront in 2025 and beyond. Addressing this challenge will require creative solutions from policymakers, developers, and industry professionals alike.

Chicago is home to 77, soon to be 78, neighborhoods. Many overlap and many seem like another world to others. There is no "one" Chicago market. Let no one tell you there is. Each one has its vibe and its data. It’s a choice that takes knowledge—the kind you get from data, not cocktail party conversation. Working with a professional with a proven track record is more important now than ever.  Details on the top 10 markets in Chicago are just a click away! 

Looking ahead to 2025, some notable trends are emerging. The new demographic of buyers is significantly younger and more affluent than ever. This group is reshaping the market with their preferences and purchasing power. Meanwhile, an aging demographic, currently sitting on inventory, is preparing for a new chapter that emphasizes renewal and reinvigoration rather than traditional retirement. Many in this group are downsizing to smaller homes or apartments that feature amenities that were once considered a luxury but are now essential for modern living. Relocating to another country has never been more on the radar and there are more opportunities than ever before with Golden Visa Programs.

An intriguing trend to look for is the growing demand for smaller, highly efficient living spaces. Innovative designs, such as Barcelona’s 430-square-foot home, reflect a shift towards sustainability and functionality over sheer square footage. The nationwide trend for the redevelopment of former commercial buildings into living spaces is also gaining momentum, with its time having truly arrived. Chicago, with its diverse housing stock and abundance of redevelopment opportunities, is well-positioned to cater to this emerging demand. Check out the project at 65 East Wacker.

It's been a year of real estate change, opportunity, and resilience.  We remain optimistic about the market’s ability to adapt and thrive. Whether you’re buying, selling, or exploring your options, staying informed and working with experienced professionals is essential to navigate the complexities of the market. Here’s to another year of growth and success in Chicago’s vibrant real estate scene.