Locked in place, Chicagoans renovate their homes
Add Axios as your preferred source to
see more of our stories on Google.
Chicagoans are increasingly turning to renovations as fewer homeowners want to sell.
Why it matters: A lack of inventory in most markets is fueling buyers' appetite for new construction, real estate experts say.
- Yes, but: In the city, where there's less land for development, more people are opting to fix-up the home they already have.
- "Anything being built sells for decent prices, but it's hard to find lots," Chicago builder Pat Cardoni tells Axios.
The big picture: Sales of existing U.S. homes, the great majority of houses sold nationally, slid 19% from a year earlier, while new home sales soared 24%, according to June figures.
- The new-build boost comes after rising mortgage rates curbed pandemic-driven home buying demand.
- Builder confidence is now at its highest level since June 2022, having declined every month that year, according to the National Association of Home Builders.
Zoom in: Sales of new Midwestern homes have fallen less sharply than those of existing houses.
- The number of newly built homes sold in the Midwest ebbed 13% in June compared to a year earlier, per the U.S. Census Bureau.
- Existing home sales dropped 19.5% during that time, according to regional figures from the National Association of Realtors.
- The number of listings coming onto the Chicagoland market is down roughly 31% compared to June 2022, per Redfin.
Between the lines: Cardoni says his custom building company has seen a recent jump in demand for projects like converting two-flats into single-family homes and adding short-term rental space in the basement.
Of note: There's still some new construction activity in the area, particularly in the suburbs and near Guaranteed Rate Field, where Cardoni says lots cost about $200-210 per square foot.
- Sales are up in newly built communities in the North suburbs, Madison and Milwaukee, Deborah Beaver with William Ryan Homes tells Axios.
What we're watching: Some builders are offering smaller, more affordable houses to lure first-time buyers, Axios' Matt Phillips reports.
Go deeper: Old houses now cost as much as new houses