Home prices are soaring around the Chicago suburbs as the city's real estate market slows down.

Why it matters: Remote workers and millennials flocked to the suburbs in recent years to get more space for their money. Now, some suburban areas are just as pricey as the city, if not more.

• "The suburbs right now are absolutely out of control, in the sense that we are back to multiple offers and waiving contingencies," partner and broker Matt Silver with Corcoran Urban Real Estate tells Axios.

By the numbers: Home prices have dropped faster in the city than the metro as a whole. In April, the median price of a home in the city of Chicago was $340,000, down 8% compared to the previous year, per the latest Illinois Realtors data.

• The median price in the greater metro was $320,000, a 1.5% decrease from April 2022.

What they're saying: Without a widespread return-to-office, "vertical living in the city is still just quiet," Silver says.

• Chicago's downtown activity has returned to 57% of its pre-pandemic levels, cell phone data shows.

Zoom in: In Naperville, the typical home cost $514,000 in April, up 7% over last year, according to MLS data from Redfin.

• Meanwhile, in Oak Brook, the median sales price rose nearly 25% year-over-year, to $900,000.

The big picture: New census data shows suburbs of big cities, along with smaller metro areas, claimed most of the country’s growth last year, the Wall Street Journal reports.

What's next: Buyers are settling down wherever they can find a house within their budget — or sitting on the sidelines, Redfin senior economist Sheharyar Bokhari tells Axios.

• If home prices in urban areas continue to drop, we could see a return to those areas.
• "The cost will outweigh any amenity," Bokhari says.

What we're watching: The suburban restaurant and retail scene. All this growth has the potential to reshape communities.

Share with a house-hunter

Typical home values across Chicagoland vary widely by ZIP code, per Zillow data shared with Axios.

• Explore our interactive area map showing where prices are climbing, moderating and decreasing.

👋 Sami here. Last week, I visited home sweet Buffalo Grove and spotted this townhome listed for an eye-popping $650,000.

• Flashback: Built in 2021, it sold for $512,000 after initially hitting the market for $492,000.

Details: The 3-bed, 2.5-bath home has all the modern bells and whistles, as well as a den, but the basement is unfinished. It's located at 297 Hoffman Dr.

Meanwhile, a dozen to-be-built townhomes, wedged on a postage stamp-sized parcel of land down the street, start at $570,000.

State of play: Low inventory, compounded by elevated interest rates, are pushing up prices.

• 💭 My thought bubble: It's also worth noting the properties will feed into highly sought-after Adlai E. Stevenson High School — my alma mater.

Are you team suburb or city living?

• What do you think is the biggest plus or drawback of living outside the city?
• If you're currently on the house hunt, what are your top priorities? Where does location rank?

Reply to this email with your thoughts. We might feature them in an upcoming newsletter.