For years, Chicago’s housing market lagged behind in price growth. Not anymore. In May, home prices in the Chicago metro area rose nearly four times faster than the national average, marking the sixth straight month the city has led the country in home price gains.
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That’s according to fresh data from Illinois Realtors and the National Association of Realtors. While national home prices rose just 2.1-percent year-over-year, Chicago clocked an 8.7-percent increase. The median price of a home in the nine-county Chicago metro area (Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties) hit $379,900 in May—its highest monthly median ever. In the city itself, homes sold for a median of $390,000, just shy of April’s all-time high.
Even though prices are slowing across the country, Chicago's market isn’t hitting the brakes nearly as hard. That’s what’s creating this growing gap between the Chicago area and the rest of the U.S.
So, what’s behind the surge in home prices? Affordability plays a big role. Compared to places like New York or San Francisco, Chicago homes still feel like a deal. Add low inventory, strong local demand and steady mortgage rates, and you’ve got a tight, competitive market. Buyers are showing up ready—and often fighting it out over well-priced listings.
Sellers, on the other hand, are seeing big opportunities. Homes in popular neighborhoods like Logan Square, West Town, Lincoln Park and Wicker Park are flying off the market, often with multiple offers.
Yes, higher prices can be rough for first-time buyers. But they’re also a sign of growing economic strength and renewed confidence in Chicago as a place to live, work and invest.
The bottom line? Chicago real estate is heating up fast—faster than anywhere else in the country.