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If you are trying to understand where prices stand in Chicago right now, you are in good hands. Values have climbed steadily through the first half of 2026, and the story behind those numbers is fairly clear once you look at supply and demand.
This guide walks through the current numbers, how the city compares to the suburbs, how to check a specific home's value, and what the rest of the year likely holds.
What Chicago Home Values Look Like Right Now
As of May 2026, the median sale price in the city of Chicago sits at $420,000, according to Illinois REALTORS data reported by The Real Deal. The median crossed the $400,000 mark in March and has held above it since. The broader metro area is more affordable, with a median closer to $365,000.
Chicago is not just rising. It is leading the country. A June 2026 S&P Case-Shiller report showed Chicago with the strongest annual price growth of all 20 major U.S. metros at 6.5%, ahead of New York at 3.8%.
Two forces are doing most of the work. Inventory remains well below pre-pandemic levels, so buyers compete harder for the homes that do get listed. Mortgage rates in the 6.0% to 6.2% range have also kept some owners from selling, which tightens supply further. For a primer on how these forces fit together, see our guide on understanding the real estate market.
Chicago vs. the Suburbs
Prices, competition, and value vary quite a bit depending on where you look. The table below gives a side-by-side snapshot of the Chicago housing market across the region.
| Area | Median Price | Trend | What Stands Out |
|---|---|---|---|
| City of Chicago | $420,000 | +6.5% annually | High competition, fastest growth in the U.S. |
| Chicago Metro Area | ~$365,000 | Rising steadily | More affordable overall |
| Addison (DuPage County) | Below metro median | Sales up ~19% | Expressway access, growing demand |
| Homewood | Below metro median | Sales up ~44% | Attainable for first-time buyers |
| Streamwood | Below metro median | Sales up ~14% | Space, schools, value |
The pattern here is simple. The city carries the highest prices and the most competition, while suburbs like Addison, Homewood, and Streamwood offer more house for the money and are seeing demand rise faster than prices. That gap is often where the clearest opportunities sit. If you are weighing rental potential, our post on whether Illinois is a landlord-friendly state covers the rules worth knowing first.
How to Check the Value of a Specific Chicago Home
Citywide numbers are useful for context, but they will not tell you what a single property is actually worth. Values can shift block by block in Chicago, so it helps to have a repeatable way to check a specific address.
Here is a straightforward process you can follow:
- Start with recent sales nearby. Look at what similar homes within about a half mile have sold for in the last three to six months. These comparable sales, or comps, are the foundation of any estimate.
- Match the key features. Compare homes with similar square footage, bed and bath counts, lot size, and condition.
- Adjust for differences. If a comp has an extra bedroom or a finished basement, move your estimate up or down to account for it.
- Factor in the trend. Since prices are rising, a sale from six months ago may understate today's value. A modest upward adjustment helps close that gap.
Once you have a few solid comps, you will have a clearer picture of what a home is truly worth.
Chicago Real Estate Forecast for the Rest of 2026
The outlook points to continued, moderate growth rather than a sharp swing in either direction:
- Realtor.com projects Chicago prices rising about 4.4% in 2026, roughly twice the national pace.
- DePaul University's Institute for Housing Studies expects the median sale price to reach about $387,000 by late 2026, with closed sales up 5.1% over last year.
- Active listings are projected to rise nearly 9% this year, the first real improvement in some time, though supply will likely stay below pre-pandemic levels.
In plain terms, prices are expected to keep climbing at a healthy pace, and a sudden drop is not on the table for most forecasters. That kind of steady trend rewards buyers who plan ahead.
What This Means for Real Estate Investors
Rising values and tight inventory can feel like a challenge, but they create clear openings if you know where to look. In a market like this, the best deals rarely sit on the open market where competition is highest. They are often found off-market, before a property is ever listed. The next step is finding the right property and running the numbers with confidence. DealMachine's all-in-one platform helps you find, evaluate, and reach property owners across the Chicago area. You can decide what makes sense for you.
Frequently Asked Questions
Will home values in Chicago drop in 2026?
A significant drop is not expected. Forecasts point to moderate appreciation of 4% to 5% for 2026, supported by low inventory and steady demand.
Is now a good time to buy a house in Chicago?
For prepared buyers, 2026 offers a reasonable window. Inventory is improving gradually, which means more options than last year. Sellers still hold the advantage in popular neighborhoods, so accurate comps and quick decisions matter.
What are the most affordable suburbs near Chicago?
Suburbs like Homewood, Streamwood, and Addison tend to offer more house for the money than the city itself. They combine attainable prices with rising buyer interest, which makes them worth a close look for both first-time buyers and investors.
Why are Chicago home prices still rising?
The main reason is low inventory. With fewer homes available than buyers want, competition pushes prices upward. Steady demand and a limited supply of new listings reinforce that trend, which is why Chicago is currently posting the fastest price growth of any major U.S. metro.