David Askar, Chief Asset Strategist of Chicago-based company Dream Tree, Inc. has revealed his list of Chicago neighborhoods for real estate investors to watch and possibly invest in 2019. Chicago enjoys the advantage of a diverse economic base and a multitude of neighborhoods cycling in and out of favor. There is always an up-and-coming market somewhere in Chicago. Investors in the know can ride these trends to big profits. Here are the neighborhoods Askar and his readers will be watching closely for deals this year:
AVONDALE. The value in Avondale has not really taken off yet, meaning a feeding frenzy has not yet begun to push prices into the stratosphere. However, when Lonely Planet named Avondale one of the top 10 neighborhoods in the country to visit back in 2017, citing dining and artsy atmosphere, young professionals priced out of Bucktown, Logan Square, and Wicker Park set their sights on Avondale. Smart money is betting on this neighborhood to explode over the next few years.
HUMBOLDT PARK. Prices have been rocketing upward in Humboldt Park since 2012, but they remain far below their 2006 peak. Humboldt Park crashed hard and deep in the Great Recession, so the climb stands to be equally dramatic. Distressed and foreclosed properties still abound for the fix and-flip investor.
LOGAN SQUARE. This is the up-and-coming neighborhood, nipping at the heels of Wicker Park and Bucktown with priceless momentum. The opening of several big chain stores like Home Depot and Target may have angered long-time residents, but big brands don’t move into dying neighborhoods. Anyone looking for a strong buy-and-hold play in Chicago can’t afford to ignore Logan Square.
PILSEN. Far enough from the inner-city grind, surrounded by boutique shops and hip 18th Street, it’s hard to deny the cool factor of Pilsen. Even better, rental owners enjoy upward rental pressure from students at nearby UIC Medical District and the University of Illinois seeking to transition out of dorms and into apartments without leaving the neighborhood. Novice investors can take advantage of robust inventory at reasonable prices in a market where rents are rising, but don’t wait – most investors will be priced out of this market soon.
WEST TOWN. Don’t count it out. If nothing else, West Town has going for it the fact that people love to live there. From community amenities to good schools to low crime, West Town is just the whole package. Values have risen steadily over the past few years. Prices are high, but renters pay a premium to live in West Town.