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A daily look at the most significant and interesting stories affecting Chicago. Written by Monica Eng, Justin Kaufmann and Carrie Shepherd.

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Expect to see more pops of pink around Chicago as Barbie powers the summer of nostalgia.

Why it matters: Reliving highlights from the past helps us find comfort and joy in the present, says Laurie Pressman, vice president of the Pantone Color Institute.

Driving the news: Illinois was among the top dozen states searching for "Barbie pink" over the past year, according to Google Trends data from early July.

The big picture: U.S. search interest in “Barbie pink” in the home and garden category more than quadrupled in June 2023 and is currently at a 10-year high, Google Trends tells Axios.

"Pink" and "Barbie pink" were among the top 10 trending paint colors in June.

Also, Pinterest saw global searches for "Barbiecore aesthetic room" jump 1,135% from May 2022 to May 2023.

What they're saying: Chicago interior designer Sarah Montgomery says today's clients are more open to maximalism, a look incorporating bold colors and patterns.

"You need a mix of styles and eras to achieve this look," she says. "Nothing should seem too precious."

Yes, but: Don't expect a deluge of Barbie Dreamhouses to pop up across Chicago.

Montgomery predicts Barbiecore home designs won’t last long term but she does expect a short-term jump in bright pink home accessories.

Pro tip: Following vintage stores and local dealers on Instagram and perusing Facebook Marketplace are great ways to get familiar with what's out there, Montgomery says.

Her Chicago shopping picks are Three Stars Resale, Dial M for Modern, Circa Modern, Spot Exclamation Point and Vintage Refined.

The latest: Gig marketplace TaskRabbit tells Axios that ahead of the Barbie movie release, clients are incorporating Barbie-inspired decor into their homes more than ever before.

We asked AI to show us what a Barbie Dreamhouse might look like in the city and in Wheaton. (It didn't disappoint.)

Chicago Barbie Dreamhouse. Image: Created with the generative AI tool Dream by Wombo

Wheaton Barbie Dreamhouse. Image: Created with the generative AI tool, Dream by Wombo

Wheaton Barbie Dreamhouse. Image: Created with the generative AI tool Dream by Wombo

The bottom line: Post-pandemic, there's a "pent-up desire to just have some fun," Pressman says. And incorporating Barbie's bold, signature shade at home — from countertops to wine glasses — is one way people are leaning into optimism.

"Barbie" movie trends inspire hot pink home design in Illinois

Animated illustration of a drab couch, over which some sparkles pass, leaving a nicer, pink couch.

Real estate

Expect to see more pops of pink around Chicago as Barbie powers the <a class="gtmContentClick" data-vars-link-text="summer of nostalgia" data-vars-click-url="https://www.axios.com/2023/06/12/mcdonalds-grimace-meal-nostalgia-summer-movies" data-vars-content-id="158b653d-d57b-4224-af50-047928ebe87d" data-vars-headline="&quot;Barbie&quot; movie trends inspire hot pink home design in Illinois" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/06/12/mcdonalds-grimace-meal-nostalgia-summer-movies" target="_self">summer of nostalgia</a>.Why it matters: Reliving highlights from the past helps us find comfort and joy in the present, says Laurie Pressman, vice president of the Pantone Color Institute.

Real Estate

Nine in 10 Illinois homeowners with mortgages have a rate below 6%, locking them in place and leaving buyers with few homes to choose from, per Redfin data shared with Axios.

Why it matters: Homeowners are experiencing the "golden handcuffs" phenomenon: They might have a great rate now, but likely can't move without spending a lot more cash, Redfin chief economist Daryl Fairweather tells Axios.

There were fewer homes on the state's market in June than at any other time in recent history, according to Illinois Realtors.

By the numbers: Nearly a quarter of Illinois homeowners with mortgages had a rate below 3% in the fourth quarter of 2022, per Redfin.

And 38% of mortgage holders had a rate between 3% and 4%.

Lincoln Park condo owner Valerie Lapointe says she has no plans to sell her place after refinancing to a 3.2% interest rate in 2020.

"If anything, when I need to move I would rent it out," she tells Axios.

Andersonville homeowner Emily Jelsomeno says she's putting off a move to Humboldt Park or Ukrainian Village because of her 3.1% rate.

She's eyeing the "bigger dating pool" and "more eclectic mix of people there," but says, "If I move now, I’d need to downgrade about $100,000 to compensate."

Data: Redfin; Chart: Alice Feng/Axios Visuals

The big picture: It's not just a local issue. Nine in 10 U.S. homeowners with mortgages secured rates below 6% as of late 2022, per the new Redfin report. Meanwhile, mortgage rates have swung between 6% and 7% nationally in recent months.

Yes, but: Some people still need to buy homes because of life transitions, such as a new baby or a newly empty nest, West suburban realtor Debbie Pawlowicz tells Axios.

"Not a lot of people are moving because they want a different home or because they feel they can make money off the sale."

Reality check: Slightly lower rates could loosen up some supply, but not enough to meet demand, Fairweather says.

New construction isn't keeping up, either. Fairweather predicts it'll take the U.S. a decade to repair its housing shortage.

Golden handcuffs lock up Illinois' housing supply

Here's a big reason why many homeowners aren't selling.

Illustration of a handcuff on a keychain in a lock

Nine in 10 Illinois homeowners with mortgages have a rate below 6%, locking them in place and leaving buyers with few homes to choose from, per Redfin data shared with Axios.Why it matters: Homeowners are experiencing the &quot;golden handcuffs&quot; phenomenon: They might have a great rate now, but likely can&#x27;t move without spending a lot more cash, Redfin chief economist Daryl Fairweather tells Axios.

Crisp white siding, natural wood and black roofs and window casings have become home design staples in Chicago's suburbs.

Why it matters: Modern farmhouses have dethroned McMansions as the suburban dream home.

Driving the news: The breezy, neutral style was popularized 10 years ago when Chip and Joanna Gaines launched HGTV's "Fixer Upper."

Zoom in: Homeowners are largely drawn to the trend because it "translates across geographic regions and looks equally appealing in suburban or more rural areas," Kate Marker, principal designer and owner of Barrington-based Kate Marker Interiors, tells Axios.

modern farmhouse kitchen with eating area

Photo: Courtesy of Stoffer Photography Interiors

The big picture: Retailers and homebuilders jumped on the bandwagon to give consumers what they want.

Target's home goods section is stocked with farmhouse-inspired Magnolia and Studio McGee collections.

The style dominates new-build communities around the country.

Of note: Some design experts predict the trend is here to stay.

"Accessibility has played a significant role in the phenomenon of the modern farmhouse," says Veronica Valencia, host of HGTV's "Revealed."

"As a homeowner, when you look at a simple modern farmhouse room, you immediately feel like, 'Oh! I can tackle that!' There are no bells and whistles to it. … It's simple and familiar," Valencia says.

If you want to incorporate the style at home, here are Valencia's top tips:

🪑 Accessorize with antiques and modern lighting.

🖼 Frame large, contemporary prints with natural wood.

🔨 Install shiplap vertically instead of horizontally, and then paint with your favorite color.

Yes, but: "It is a very ubiquitous look so personalizing is a key way to make your own home more distinctive," Marker says.

She suggests adding stone or brick exterior finishes, and embracing a darker contrast color on the exterior to break up the white.

Also, incorporate reclaimed materials in shutters, doors or beams to create a more timeless aesthetic.

Between the lines: The average consumer isn't ready to quit the approachable style.

What they're saying: "Pinners are also putting their own spin on the trend to make spaces feel like their own," says Swasti Sarna, global director of data insights at Pinterest.

Modern farmhouses dominate Chicago's suburbs

Modern farmhouses dethroned McMansions as the suburban dream home.

Crisp white siding, natural wood and black roofs and window casings have become home design staples in <a class="gtmContentClick" data-vars-link-text="Chicago&#x27;s suburbs" data-vars-click-url="https://www.axios.com/local/chicago/2023/06/10/chicago-suburbs-home-prices-soar" data-vars-content-id="6b2bb754-8eb3-4902-8cdf-1798a254d554" data-vars-headline="Modern farmhouses dominate Chicago&#x27;s suburbs" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/chicago/2023/06/10/chicago-suburbs-home-prices-soar" target="_self">Chicago&#x27;s suburbs</a>.Why it matters: Modern farmhouses have <a class="gtmContentClick" data-vars-link-text="dethroned McMansions" data-vars-click-url="https://www.nytimes.com/2023/07/07/realestate/modern-farmhouse-suburbs.html" data-vars-content-id="6b2bb754-8eb3-4902-8cdf-1798a254d554" data-vars-headline="Modern farmhouses dominate Chicago&#x27;s suburbs" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nytimes.com/2023/07/07/realestate/modern-farmhouse-suburbs.html" target="_blank">dethroned McMansions</a> as the suburban dream home.

It's getting harder to buy your first home in Chicago.

By the numbers: The share of first-time buyers in the U.S. has shrunk to a record low — dropping from 34% to 26% from 2021 to 2022 — as inventory and affordability issues persist, according to the National Association of Realtors (NAR).

First-timers are also waiting longer to buy; the median first-time buyer age jumped from 33 to 36 during that time, the latest data shows.

Of note: The majority of Americans believe it's the worst time ever to buy a house.

What's happening: Expect competition in Chicago's tight market, says buyers specialist Willem Nong-Lambert at local brokerage Weinberg Choi Residential, who primarily works with first-timers.

Close to 47% of Chicago metro area homes sold above asking price in May, per Redfin.

Zoom in: In high-end neighborhoods like Lakeview, Lincoln Park, Bucktown and Wicker Park, "it's pretty much inevitable that we're going to run into multiple-offer situations, no matter the price point," Nong-Lambert tells Axios.

Conditions are calmer in River North, Streeterville, Gold Coast and the Loop.

State of play: These days, the key to winning transactions is covering an appraisal gap and making an "as-is" offer, Nong-Lambert says.

Nearly all of his clients' offers in the past year have been "as-is," meaning they agree not to nit-pick cosmetic features like paint or doorknobs during inspection.

A buyer's willingness to eat the difference between the sale price and a home's appraised value can also sweeten the deal.

Data: Zillow Economic Research; Map: Tory Lysik/Axios Visuals

The big picture: Saving enough for a down payment is the biggest barrier to entry, says Brandi Snowden, a NAR director.

Many would-be buyers are saddled with debt, including student loans, car loans and credit card debt.

Be smart: Homebuyers aren't putting as much money down as they were at the height of the housing frenzy, Axios' Emily Peck reports.

Between the lines: Nong-Lambert rarely has buyers who put 20% down, citing higher interest rates and the variety of financing avenues available, such as buydowns and adjustable-rate mortgages.

The median down payment in Chicago was 10% in April, per Redfin. 

It'll take Illinoisans nearly six years to save for that, according to Zillow data. In the Chicago metro area, the length of time grows to seven years.

Meanwhile, earnest money, the good-faith deposit that gained importance during the pandemic boom, is back to the market minimum of $2,000 to $4,000, according to Nong-Lambert.

The bottom line: Chicago price growth has lagged other metros as more people leave town, making it "a little bit more of an approachable market to enter," Nong-Lambert says.

Chicago's first-time homebuyers win making "as-is" offers

Illustration of a book, shaped like a house, with many page markers sticking out. 

It&#x27;s getting harder to buy your first home in Chicago.By the numbers: The share of <a class="gtmContentClick" data-vars-link-text="first-time buyers" data-vars-click-url="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" data-vars-content-id="c7c7cf39-07d1-498d-ae1b-9084ffdb447d" data-vars-headline="Chicago&#x27;s first-time homebuyers win making &quot;as-is&quot; offers" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nar.realtor/newsroom/nar-finds-share-of-first-time-home-buyers-smaller-older-than-ever-before" target="_blank">first-time buyers</a> in the U.S. has shrunk to a record low — dropping from 34% to 26% from 2021 to 2022 — as inventory and affordability issues persist, according to the National Association of Realtors (NAR).

Data: Zillow; Note: Origins include the entire metro area; Chart: Axios Visuals

Illinois is among the fastest-shrinking states in terms of population, but the Windy City remains an attractive home to job seekers.

Why it matters: Young professionals are still moving to Chicago, even as affordability draws Illinoisans to low-tax states like Florida and Texas.

What they're saying: Young professionals, particularly those from the Midwest, are drawn to Chicago's many industries and its vibrant food and entertainment scenes, according to broker associate Bucky Cross, who helps clients relocate.

"Chicago will always have an influx of talent," he says.

Zoom in: Almost 80% of pageviews for Chicago-area Zillow listings came from locals, per first-quarter Zillow data shared with Axios.

Outside the metro, Milwaukee was the top origin, followed by New York, Denver, Minneapolis and Detroit.

The big picture: The exodus from major metros like Chicago comes as people seek lower living costs, or to pocket more income. Illinois has one of the highest tax burdens nationwide, NPR reports.

"Folks are looking for a leg up wherever they can get it," says Cross.

He's seen an uptick in people moving to states with no income tax.

Driving the news: Illinois lost 1.6% of its population between 2020-2022, per U.S. Census Bureau data.

A new Redfin report shows Chicago was the most common origin of people moving to hot spots Sarasota and Cape Coral, Florida.

Reality check: Elevated mortgage rates are keeping many people in place. "We're seeing a big pullback in migration right now," Redfin deputy chief economist Taylor Marr tells Axios.

Across the U.S., the number of Redfin users searching for homes within their metro is down 18% from a year ago, per the June report.

Meanwhile, the number of users surfing listings in a new area dropped by 7%.

Chicago's pack of young transplants includes reader Sydney S., a remote worker who arrived last May from Washington, D.C.

She was drawn to the city's relatively affordable housing — she lives alone in a Gold Coast apartment — and outdoor recreation space.

Between the lines: "I knew I wanted to be in a big, walkable city, and I’m not ready, nor have the income, to live comfortably in New York, so Chicago was really the clear choice," she tells Axios.

The area's parks and beaches also enticed Sydney, who runs on the magnificent Lakefront Trail several times a week, then takes a dip after.

Pro tip: Chicagoans are especially welcoming to newcomers, some readers told us. 

Ben S., who moved to Edgewater from upstate New York for a job at U.I.C., suggests asking around about where to find activities you like, "and it probably won't be long before you are connected with a group."

Young professionals still love Chicago, even as more people leave the state

Affordability is drawing Illinoisans to low-tax states like Florida and Texas.

Illinois is among the <a class="gtmContentClick" data-vars-link-text="fastest-shrinking states" data-vars-click-url="https://www.axios.com/2023/04/07/population-change-pandemic" data-vars-content-id="d79c392c-9fde-467e-8dce-968790918123" data-vars-headline="Young professionals still love Chicago, even as more people leave the state" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/04/07/population-change-pandemic" target="_self">fastest-shrinking states</a> in terms of population, but the Windy City remains an attractive home to job seekers.Why it matters: Young professionals are still moving to Chicago, even as affordability draws Illinoisans to low-tax states like Florida and Texas.

Brianna Crane

Featured stories

Modern farmhouses dominate Chicago's suburbs

Young professionals still love Chicago, even as more people leave the state

"Barbie" movie trends inspire hot pink home design in Illinois

Golden handcuffs lock up Illinois' housing supply

Chicago's first-time homebuyers win making "as-is" offers