Chicago continues to be one of the most dynamic and diverse real estate markets in the U.S. This city offers a mix type opf urban neighborhoods. You can find hundreds of properties, including the lakefront ones and historic architecture. In a word, it can be said that the city offers something that an investor is looking for. First-time buyers or those who want to expand their portfolio should understand that the types of properties with the most investment potential are key.
The Chicago real estate market continues to shift, and therefore, it is crucial to work with the best real estate agent in Chicago. They can help ensure your investment decisions are strategic, informed, and profitable. Experienced real estate professionals help clients buy and sell properties across Chicago and the surrounding suburbs. They offer unmatched local expertise and personalized service.
Let’s dive into the top five property types worth considering for your next investment in Chicago.
1. Multi-Family Properties
Multi-family homes in two-flats, three-flats, and small apartment buildings. These properties are often regarded as a cornerstone of Chicago’s residential market. These are also one of the most sought-after investment opportunities.
Many families nowadays are willing to rent rather than buy. Therefore, the demand for quality rental housing options continues to grow. Multi-family units are especially functional for these reasons. These properties are a good investment option as you can earn a consistent monthly income as well as get long-term property appreciation. In neighborhoods like Pilsen, Logan Square, and Bronzeville, multi-family properties offer both rental demand and growth potential.
Furthermore, owner-occupiers can take advantage of FHA or conventional financing by living in one unit and renting out the others. These can effectively reduce or even eliminate their own housing costs.
Pro tip: A well-experienced real estate professional can help you understand the market scenario so that you can get the best deals on multi-family properties.
2. Condominiums in Prime Neighborhoods
Investing in condos in prime areas like River North, West Loop, Streeterville, and Lincoln Park is a good investment option. These are especially beneficial for those who want a low-maintenance property, present in high-demand areas. These properties are lucrative among young professionals, students, and out-of-town buyers who look for properties that are close to downtown.
You can offer the condos for rent on both a short-term and a long-term basis. As inventory tightens and construction slows due to economic pressures, the value of existing condo units in desirable areas is on the rise.
However, you should keep in mind that some buildings in the region have tight rental restrictions or higher HOA fees that affect profitability. A reliable real estate advisor like Doug DiBasilio can walk you through the process. They can help you understand the building bylaws, HOA financials, and assess whether a condo is a smart investment in the long term.
3. Mixed-Use Properties
Remote work, during recent times, has been reshaping the lives of people. As a result, mixed-use buildings have become popular more than ever. These properties often feature residential units above street-level commercial spaces, such as retail, offices, or restaurants.
The emerging neighborhoods, like Avondale or Uptown, offer a good option for these mixed-use buildings. These can offer you dual income streams and strong upside potential as communities continue to grow. The commercial space can be rented to local businesses, while the upper residential units provide steady monthly rent.
Mixed-use properties can be more complex to manage due to commercial leases and zoning requirements. However, they also offer excellent tax advantages and flexibility.
4. Single-Family Homes in Emerging Areas
The multi-unit homes are dominating the Chicago real estate market. However, single-unit homes are also transitioning into the emerging neighborhoods. These properties are appreciated for their long-term value as well as rental income options.
The maximum single-family homes can be found in the suburbs. These are emerging areas in the city that have been seeing significant redevelopment, with new businesses, transit improvements, and public investments. According to the real estate reports, buying a single-family home will offer you strong equity gains within 5 to 10 years.
5. Build-to-Rent or New Construction Rentals
The build-to-rent (BTR) is trending in the Chicago market, particularly in the outer areas of the city and the suburbs. They are newly-built construction houses that are purposefully designed to rent out, particularly to fit the needs of the modern tenant with modern facilities, intelligent home systems, and energy-saving provisions.
For investors, these properties often require less maintenance in the early years, attract higher-quality tenants, and can command premium rents. This strategy is ideal for those looking for a more passive investment or lower management overhead.
Neighborhoods such as Jefferson Park, Norwood Park, and some areas of the Southwest Side have become great places to develop BTR projects.
Why Work with Doug DiBasilio?
Navigating the real estate market in a city like Chicago requires experience, precision, and a solid understanding of the real estate scenario. Doug DiBasilio, an agent with HomeSmart, brings all three.
Doug, the best real estate agent in Chicago, helps clients buy and sell property across Chicago and the surrounding suburbs, including Arlington Heights, Palatine, and beyond. He understands the nuances of Chicago’s real estate market. He can help you find the best deals, whether you’re investing in a Logan Square two-flat or a South Loop condo.
The following are the advantages of working with Doug:
- One-on-one buyer strategy sessions
- Access to off-market and exclusive listings
- Help analyze cash flow, ROI, and financing
- Personalized neighborhood recommendations
- Professional negotiations and smooth closings
FAQs
- What is the best property for investment purposes in Chicago?
Multi-family homes are considered the best properties for investment purposes. These properties offer excellent ROI on your property purchase.
- Are condos a good investment in Chicago?
Yes, condos in prime neighborhoods provide great value. These are much appreciated for lower maintenance, high rental demand, and potential for long-term appreciation.
- What is a mixed-use property?
Mixed-use properties combine residential and commercial spaces. These offer dual income options and can offer strong ROI value in high-traffic neighborhoods.
- Should I invest in a single-family home?
Definitely! Single-family homes in up-and-coming areas can appreciate significantly. These attract long-term renters seeking space and privacy.
The Bottom Line
So, investing in the real estate market in Chicago in 2025 is full of opportunities. From multi-unit and mixed-use buildings to new construction rentals, there are several options. You can choose any according to your budget and long-term requirements. These properties ensure growth and stability in today’s market.
But more than anything, the right real estate agent can make the difference between a good deal and a great one. So, book a free consultation with Doug today and start your home-buying journey in Chicago!
