While home prices are slipping in many parts of the United States, Chicago’s market continues to defy the national slowdown—with prices rising in October at more than four times the speed of U.S. home values overall.
It’s not ideal news for buyers facing affordability challenges, but as a measure of market strength, this kind of price resilience is significant. For well over a year, Chicago’s home-price growth has outpaced nearly every major U.S. city. For months, only New York was climbing faster — until now. Chicago currently leads price growth among the nation’s 10 largest cities.
Below is a breakdown of the latest data and four reasons sellers can be thankful.
October Delivered the Highest Price Growth of the Year
The median price of all homes sold in October across the nine-county Chicago metro area reached $369,000, an 8.5% jump from October 2024. This marks the strongest annual increase since December 2024, when prices rose 11.1%.
In the City of Chicago:
- Median price: $370,000
- Annual increase: 7.2%
By Comparison:
- U.S. median sale price: $415,200
- National annual growth: 2.1
- Chicago’s growth: 4× the U.S. rate
Meanwhile, about one-third of the nation’s largest housing markets saw prices fall in October — many of them warm-weather “pandemic boomtowns” now facing insurance pressures and demand pullback.
Counties included in the Chicago metro data:
Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry, and Will.
September Was Another Strong Month for Chicago
According to the S&P CoreLogic Case-Shiller Index (released this week and covering September data):
- Chicago home values increased 5.45% — the largest gain among all 20 major U.S. metros tracked.
- New York followed at 5.25%.
- National home values rose only 1.29%
Notably, 11 out of 20 major cities saw price declines, up from nine the previous month.
Real Estate Markets Cooling Most Sharply:
- Tampa (-4.1%) → 11 straight months of declining prices
- Phoenix
- Dallas
These markets are experiencing deeper corrections after their dramatic pandemic-era surge.
Chicago’s price growth did slow slightly compared to the prior month (5.9% → 5.45%), but remains well above inflation, which was 2.9% in August.
Sales Are Stabilizing — Not Crashing
October sales data (Illinois Realtors):
- City of Chicago: 1,782 homes sold → Down 2.2% YOY
- Metro area: 7,690 homes sold → Up 2% YOY
National home sales increased 1.7%, slightly below Chicago’s pace.
Year-to-date (January–October):
- Chicago home sales: up 0.5% vs. 2024
- Metro-wide sales: up 1.3%
At this pace, 2025 is positioned to finish stronger than 2024, which recorded the fewest Chicago-area sales since 2011.
Chicago Has One of the Most Balanced Markets in the Country
High interest rates and elevated prices have pushed many buyers to the sidelines nationwide — but Chicago continues to buck that trend.
- Nationally, sellers outnumber buyers by 37% (Redfin).
- In 36 of 50 large U.S. markets, buyers face slower demand and frequent price cuts.
Chicago is Different:
- In October, buyers outnumbered sellers by 2.7%.
- This is considered a balanced market, giving buyers and sellers comparable leverage.
- It’s one of only eight balanced major markets nationwide.
- The gap is small enough to be near-perfect equilibrium.
For Comparison:
- San Jose was the only city closer to balance (1.6%) — but there, sellers outnumber buyers, the opposite of Chicago.
What This Means:
- Buyers can find homes without extreme bidding wars.
- Sellers can expect strong prices — but shouldn’t stretch list prices too optimistically
Final Thoughts on Chicago’s Real Estate Market Going Into 2026
Chicago continues to stand firm as other major U.S. markets soften.
With steady demand, strong year-over-year price increases, and a uniquely balanced market, the region — including the North Shore — remains one of the healthiest housing environments in the country.
For local analysis, neighborhood-specific guidance, or help navigating today’s conditions, reach out to Sonia Madden.
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Article by Dennis Rodkin, Crain’s Chicago Business
Formatting & commentary by Sonia Madden, @MaddenNorthShore
Visit the blog: https://maddennorthshore.com/blog/
