Chicago housing shortage pushes home prices higher
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Illustration: Sarah Grillo/Axios
Home prices continue to climb across the Chicago area.
The latest: Prices in the city of Chicago were up 13% in July from a year ago, while suburban home prices rose nearly 7%.
Why it matters: With buyers still facing far less inventory than before the pandemic, sellers maintain a grip on the market, keeping upward pressure on prices.
By the numbers: Chicago's median sale price reached $425,000 in July, up 13% from $375,000 a year ago, according to Illinois Realtors.
- Across the nine-county Chicago metro area, the median price rose nearly 7%, from $375,500 in July 2025 to $401,000 this year.
- That increase ranked Chicago first for annual median price growth among the nation's 40 largest markets, according to Homes.com.
Yes, but: Overall, Chicago remains more affordable compared to other major cities, ranking as the 28th highest-priced housing market.
- That's behind reliably expensive markets like San Francisco and New York, but more affordable than smaller cities like Raleigh and Orlando.
State of play: Home prices were up, and perhaps not surprisingly, home sales were down since July 2025. Sales in the city went down 2.9% and sales in the metro area were pretty steady year to year.
- Homes stayed on the market for 47 days, about nine fewer days than the national average.
- Townhomes had the highest inventory bump, up more than 7% from last year, making that a possible alternative to single-family homes for buyers looking to close fast.
Context: Despite being up from last year, only about 23,000 homes were for sale in July, a 56% dip from summer 2019, when about 54,000 homes were for sale.
Backstory: Illinois, like many states, continues to struggle with inventory, leaving buyers with limited options.
What they're saying: "Limited inventory is keeping the market competitive for buyers and underscores the importance of expanding housing options statewide," Illinois Realtors president Jeff Kolbus said in a statement.
The bottom line: If you can wait a little longer to buy, wait it out, but if you're looking to get out of your current place, you could make more than you expected in this seller's market.