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Moving to Windy City? Know These Aspects Before Buying A House In Chicago

Posted by techceptionpk_admin on May 13, 2022

Chicago, often known as the “Windy Metropolis,” is a well-known American city that serves as a global center for finance, education, trade, technology, and culture. These factors charm many people into buying a house in Chicago city. The city of Chicago attracts people all year long for exciting experiences. People from all over the world are drawn to this city because of its vibrant art scene, diverse cultural attractions, excellent shopping, and distinctive architecture.

If you plan on buying a house in Chicago city, you should consider other factors that add up to your monthly expenses. Buying a house is not the only cost that you will encounter. Cost of living, monthly mortgage expenses, and insurance costs also have a significant impact on your monthly budget. Keep reading to know more!

1- The Real Estate Market Of Chicago City

Due to fast-growing costs in 2022, first-time home purchasers in Chicago are being priced out of the market. People are having difficulty buying a house in Chicago. Hence they are resorting to rental options, according to the Chicago Tribune. In contrast to last year, the value of a home in Chicago grew by 8.6%.

Housing prices in Chicago are expected to rise modestly, while sales growth is expected to slow slightly. With market circumstances like these, consider if you want to wait for housing prices to die down. 

2- Chicago Has A Strong Rental Market

Rents in Chicago continue to rise in 2022, putting landlords in the driver’s seat. Two suburban Chicago neighborhoods, Naperville and Arlington Heights have seen their rents rise double digits as residents seek less congestion and more space.

Rising Chicago property costs contribute to the rental market in Chicago being appealing to both local and remote real estate investors.

3- 2022 Is Not The Year Of Buyers

Before you buy or sell a house, it’s better to analyze whether you are in a buyer’s market or seller’s market. In a buyer’s market, the quantity of homes for sale exceeds the number of purchasers. This provides the buyer with the upper hand. When a market is a seller’s market, there are more buyers than available properties. As a result, the advantage goes to the seller.

As of 2022, the bulk of the United States is in a seller’s market. This means that demand outnumbers supply. Property values are rising as a result. Home prices in Chicago are expected to climb in the coming years. Consider all of these factors before buying a house in Chicago. 

4- The Cost Of Living 

Consider aspects such as the cost of living in Chicago before relocating to Windy City. Let us begin with housing costs and rentals. In comparison to other major cities in the US, Chicago ranks 11th number. The rents are generally lower, so that’s a plus point. The most expensive neighborhoods are Streeterville, River North, and River West. The Island, West Pullman, and Austin are the least expensive.

Moving on to utilities, they are 7% more affordable in contrast to other cities. Basic utilities like groceries, water, electricity, and gas bills are generally affordable. They won’t break the bank. For transportation, public transit is a fantastic option. Thirty percent of commuters utilize it on a regular basis. The fact that 98.5 percent of employment is within half a mile of public transportation makes it even handier.

5- Know The Weather

For a few people, an extreme climate is a major dealbreaker when moving to a new place. When you’re buying a house in Chicago, you want to make sure that the weather doesn’t drag you down but rather uplifts your mood. Chicago has a humid continental climate with scorching summers. The city enjoys each of the four seasons.

Summers are hot and humid, with temperatures being hotter inland. Spring and fall bring bouts of both cool and warm weather, as well as fairly sunny skies. Winters are cold, with frequent snow and windchill temperatures near 0 °F. Overall, the city has a moderate and pleasant climate.

6- Best Neighborhoods For Buying A House In Chicago 

Before buying a home in Chicago, research the best neighborhoods based on the cost of living, crime, public schools, employment opportunities, and other factors. We’ve compiled a short selection of family-friendly areas where you may simply settle in.

i- Edison Park

Looking for a peaceful neighborhood where you can get away from the city’s noise and chaos? Take a look at Edison Park! Larger single-family houses with yards, and superb schools like Edison Park Elementary and Frederick Stock School. The place has easy access to the Metra Rail via Edison Park Train Station, making this North Side neighborhood one of the safest in the city. Edison Park is also approximately 15 minutes from Chicago O’Hare International Airport, making it an ideal location for air travelers!

ii- Beverly

You can find the neighborhood of Beverly on Chicago’s South Side. It is a great spot to buy a property in the city! Beverly is a wonderful place for families and adults wishing to settle down in their elder years. You can find housing options ranging from typical brick bungalows to huge Craftsman-style mansions. There are top-rated local schools like Kellogg Elementary and Sutherland Elementary, have an abundance of green space. Furthermore, this Chicago area is recognized for its Irish heritage. There is a wide range of Irish bars and events, such as the South Side Irish Parade.

iii- Lincoln Park

Consider buying a property in Chicago’s Lincoln Park area if you want to live in the city but also want to be near nature. This neighborhood, which is only 15 minutes from The Loop, features historic brick townhouses and high-rise condominiums, as well as extensive open areas and access to North Avenue Beach. Although inhabitants of all ages enjoy Lincoln Park, families will appreciate the neighborhood’s great local schools, such as Lincoln Park High School and Abraham Lincoln Elementary. 

iv- Lake View

Lake View is a Chicago hotspot for young individuals looking to buy a house along Lake Michigan among the city’s top arts, entertainment, live music, and festivals. There’s plenty to love about living in Lake View. You can find affordable condos and townhomes in the neighborhood. Get easy access to outdoor recreation at Lincoln Park and Belmont Harbor. For public transport, there are multiple Metra Rail stations for commuting across the city. 

v- Mount Greenwood

Are you looking for a safe, cheap Chicago area to buy a home in? Mount Greenwood is an ideal neighborhood for those who prefer living a lowkey life in the suburbs. Mount Greenwood is a great location for families looking for a high-quality education near to home, with top-rated private schools including Brother Rice High School, Marist High School, and Mother McAuley Liberal Arts High School. 

7- Find a Knowledgeable Real Estate Agent In Chicago

Finding a home to live in on your own may be a difficult and stressful task. A professional real estate agent can help you manage your search by keeping track of new listings, organizing viewings, and engaging with the seller’s agent.

Contact Regentology to find the best real estate agent in Chicago before you buy a home. Our team of specialists will pair you with the most qualified agent in your region.

8- Home Buying Programs For Buying A House In Chicago

Whether you are a first-time homebuyer or a repeat buyer, you can opt for home loan assistance. The state of Illinois offers a few valuable home loan programs in the form of down payment assistance and closing costs to residents of Chicago.

i- Illinois First-time Homebuyer Program

IHDA Mortgage is a branch of the Illinois Housing Development Authority (IHDA), which offers a variety of mortgage options. The program offers $10,000 in down payment help for qualified applicants. You must select a lender from the IHDA’s list of approved lenders.

To be eligible, you must finish a homebuyer education course. The credit score of the buyer should be at least 640. One can also acquire a Mortgage Credit Certificate (MCC), which helps save money on federal taxes.

ii- Illinois First-time Homebuyer Grants

For qualified applicants, IHDA Mortgage offers a variety of down payment assistance services. The maximum amount of cash assistance is $10,000 or 10% of the purchase price. This acts as a second mortgage.

Down payment help may take the following forms.

  • A forgiven second mortgage: a debt that is forgiven over a period of five or ten years. Don’t pay anything back if you stay in the house for that long.
  • A second mortgage that has been postponed: When refinancing, selling your house, or paying off your primary mortgage, your loan balance becomes due. This loan has no interest attached to it.
  • A second mortgage that can be repaid: The loan is repaid over a ten-year period with monthly installments and zero interest rate. 

Regentology Can Help Buy You A House In Chicago

Contact Regentology once you’ve decided to buy a house in Chicago, keeping all of the above guidelines in mind. Regentology is here to assist you in navigating the intricacies of homeownership. Simply fill out our form to obtain a free consultation. You’ll be put in touch with the best real estate agent in your region, who will offer you viable options.

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