Building Costs Per Square Foot in the City of Chicago (IL), USA

Newly Built House in Chicago 1522 N Leamington Avenue IL60651 – 4 Bed and 4 Baths with 2 x Attached Garages on Gross Floor Area 2,910 sqft – Built in 2022 – Price $534,900 (3)

Residential Construction Market Analysis in the City of Chicago, USA

Building costs are 15% above the national average in the City of Chicago in Illinois, equivalent to the city of Bedford (MA), Flushing (NY), Garden City (NY) and Dickinson (ND). The lights of Chicago shine brighter and brighter, and in the real estate market, cities like NY and Los Angeles fail to overshadow it. The residential construction market in Chicago is varied, with ambitious projects and constructions of all kinds.

Chicago was chosen as one of the best cities to retire, but it is also one of the most chosen cities by young people who are doing their university careers here. It is even a city that attracts athletes thanks to its culture full of sports.

After the pandemic, Chicago is expected to receive a property buying and selling boom in 2022 and next year, so it’s a great time to join. Stay here and read this article where we will tell you the things you must know about the real estate market from Chicago.

Chicago Construction Outlook

Don’t let the wind intimidate you, Chicago is among the best places to live and its buildings are varied, so there is something for everyone. From tall buildings to residential houses, you can find anything here.

If you look at the real estate market in the central tourist area, then you will see that most of the properties on offer are apartments. These apartments range from penthouses to apartments with only one room. It is very common to live with roommates in this city since there is a large number of young people who go to universities or are taking their first steps in the world of work.

If you are looking for the best places to live in the Chicago, then you should check towns like Printers Row, and River North, since they have the highest income rate, plus the lowest crime rate. Now the most popular suburbs to live in, that are also the most affordable ones, are Clarendon Hills and Naperville. In any of these listed neighborhoods, you will mostly find residential houses for middle class families. Unlike in other cities, here not all the houses are luxurious, there are some small houses or 3-bedroom houses, but they are not necessarily mansions with swimming pools.

Chicago Housing Market Analysis and Forecast

Chicago is the city of renters: it is perfect if you are looking to rent a property, and also if you are an investor. One of the trends in Chicago real estate is rising home prices in Chicago, and it’s probably another reason why more people in the area are renting properties where they live.

Statistics like these help make the rental market in Chicago attractive to local and far-flung real estate investors, which is also Trending in Chicago Real Estate. The households that are rented in Chicago represent over 50% of the total occupied housing units in the city. This shows that renting is a big hit in Chicago and is usually preferred over buying.

The most affordable neighborhoods in Chicago for people that are looking to rent are places like New City and Riverdale, where you can find nice houses to rent starting $1,300 per month or less. The value always depends on the type of the house, the location, and how old it is.

Something that makes Chicago shine above other cities in the United States is the how long it takes to sell a property in the city. In Chicago, the average time is 63 days, which may seem like a lot, but compared to smaller cities, it’s a big number. Some houses sell within the first few weeks or even days of being listed, as Chicago is always attracting new people.

Chicago Average House Price (Median Home Price)

The median home value index for Chicago is $320,000 as of November 2022. Chicago home values increased 9.6% last year, which was worth $302,000. The prices are rising non-stop in Chicago since 2017, with a total increase of over 35% in the values.

Chicago has over 60 neighborhoods, and the most expensive neighborhood to buy a home in is Lincoln Park, where the average price of the listed properties is almost $600.000. The most affordable neighborhood in Chicago is to buy a home in West Ridge, where the median listing price is $175,000.

This shows you that the diversity in Chicago neighborhoods goes a long way in finding a property that fits the values you can handle. In addition, the government of the city of Chicago usually offers mortgage loans or credits for the purchase of properties that can be of great help as financing.

The average rent in Chicago is $2,000 per month for a 3 bedroom unit, which is a huge number, especially when compared to NY or Los Angeles.This shows why Chicago is a city that attracts so many people who can rent but not buy a house, as it is favorable. Especially if you take into account that some people live in Chicago for their university or to work temporarily in hospitals that offer large programs for residents, the passage of these people through Chicago is only temporary.

Proposed Residential Building Projects in Chicago

Being a large city with some suburban towns, Chicago has a wide variety of real estate projects. In the city center, there are always buildings under construction. There is also a tendency to remodel and restore buildings from the 70s and 80s. In these restorations, these buildings are left as if they were new, although they maintain the essence of their early years.

In the neighborhood of Lincoln Park, you can find some luxury houses under construction. These houses have more than 3 bedrooms, and two bathrooms and are completely new. In most cases, the properties here have a swimming pool, a small garden, and a space for the cars.

Remodelled House in Chicago 5520 N Nordica Avenue IL60656 – 4 Bed and 3.5 Baths on Gross Floor Area 3,220 sqft – Remodelled and Renovated in 2022 – Price $779,900

Building Costs Per Square Foot for Single Family Homes in the City of Chicago, USA

Building costs are 15% above the national average in the City of Chicago in Illinois, equivalent to the city of Bedford (MA), Flushing (NY), Garden City (NY) and Dickinson (ND).

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Chicago City ranges from $396.62 per sqft to $608.01 per sqft, with the average being $468.07 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Chicago City ranges from $241.05 per sqft to $369.50 per sqft, with the average being $284.47 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Chicago City ranges from $155.83 per sqft to $236.68 per sqft, with the average being $182.44 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Chicago City ranges from $113.72 per sqft to $174.40 per sqft, with the average being $134.21 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Chicago City ranges from $92.31 per sqft to $141.37 per sqft, with the average being $108.85 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Chicago City ranges from $72.81 per sqft to $111.60 per sqft, with the average being $85.89 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.