Home Values in Chicago, Illinois — 2026 Market Report
Updated March 2026 | Buyer's Market | +2.2% YoY
The median home value in Chicago, Illinois is $295,000 as of March 2026, which is below the national median of $400,000. Home values in Chicago have increased by 2.2% over the past year and 11.5% over the last five years. With a population of 2,693,976 and a median household income of $62,097, the price-to-income ratio stands at 4.8x, making Chicago affordable for the average household.
Chicago Housing Market Conditions
| Metric | Chicago | National Avg |
|---|---|---|
| Median Home Value | $295,000 | $400,000 |
| YoY Appreciation | +2.2% | +3.8% |
| 5-Year Appreciation | +11.5% | +22.4% |
| Price per Sq Ft | $98 | $222 |
| Days on Market | 58 days | 45 days |
| Months of Supply | 5.4 | 3.5 |
| List-to-Sale Ratio | 98.5% | 98.5% |
| Monthly Homes Sold | 2,591 | — |
| Foreclosure Rate | 0.77% | 0.3% |
Home Value Trends in Chicago
A homeowner who purchased at the median price of $264,574 five years ago in Chicago would have gained approximately $30,426 in equity, representing a 11.5% return on investment. Over the past year alone, the typical homeowner gained $6,350 in home equity.
Affordability in Chicago, IL
With a median household income of $62,097 and a median home price of $295,000, the price-to-income ratio in Chicago is 4.8x. A ratio below 3x is generally considered affordable, while above 5x indicates significant affordability challenges. The average monthly rent of $1,831 compared to estimated monthly ownership costs of $1,910 gives a rent-vs-buy ratio of 1.04. In Chicago, buying is currently competitive with renting when factoring in equity accumulation.
Property Taxes in Chicago
The effective property tax rate in Illinois is 2.07%. On a home valued at $295,000, the estimated annual property tax bill is $6,107, or approximately $509/month. Property taxes are an important factor in the total cost of homeownership and can significantly impact affordability. The cost of living index in Chicago is 107.3 (100 = national average), indicating living costs are near the national average.
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Open Mortgage CalculatorFrequently Asked Questions
What is the median home value in Chicago, IL?
The median home value in Chicago, Illinois is $295,000 as of March 2026. Home values have changed +2.2% over the past year, with a 5-year appreciation of 11.5%.
Is Chicago a buyer's or seller's market?
Chicago is currently a buyer's market with 5.4 months of housing supply. Homes spend an average of 58 days on market, and the list-to-sale price ratio is 98.5%. Higher inventory gives buyers more negotiating power.
Are home values going up in Chicago?
Yes, home values in Chicago have increased by 2.2% over the past year. The 5-year appreciation rate is 11.5%, meaning a home worth $264,574 five years ago is now worth $295,000.
Is it better to rent or buy in Chicago?
The average monthly rent in Chicago is $1,831, while estimated monthly homeownership costs are approximately $1,910. The price-to-rent ratio is 13.4. Based on current conditions, buying may be more cost-effective than renting in this market.
Home Values in Other Illinois Cities
Related Resources
Disclaimer: Home value data for Chicago, Illinois is based on publicly available market data and estimates. Actual home values may vary based on property condition, location within the city, and current market conditions. Data is updated regularly but may not reflect the most recent transactions. Last updated: March 2026.