Chicago, IL Housing Market Report

The Chicago real estate market entering December 2025 remains a competitive environment characterized by tight inventory and steady price appreciation. With active listings down 6.05 percent year-over-year to 17,025 units, the market continues to lean in favor of sellers. This supply constraint is the primary driver of the 2.34 percent annual increase in median home values, which reached $304,487 this month. The sale-to-list ratio of 1 indicates that properties are generally selling for their full asking price, reflecting a balanced negotiation environment despite the limited choices available to buyers.

Price trends over the last six months show a consistent upward trajectory, with values rising every month since July 2025. This steady climb suggests a resilient demand for housing within the Chicago-Naperville-Elgin metro area, even as the broader economic landscape shifts. While home price growth is moderate, the rental market is experiencing more significant pressure, with median rents jumping 6.31 percent to $2,191. This disparity between home value growth and rent increases may encourage long-term renters to transition into homeownership to lock in housing costs, further fueling demand for entry-level inventory.

Looking ahead, the slight increase in days on market—now at 51 days—suggests that while demand is high, buyers are becoming more selective or are constrained by affordability. Sellers should expect a successful sale if their property is priced accurately, but they must account for the extra three days of marketing time compared to last year. For buyers, the persistence of the current price trend suggests that waiting for a significant market correction may be counterproductive. Instead, focusing on securing a property in a high-demand neighborhood before further appreciation occurs remains a viable strategy for 2026.