Chicago Housing Market

Rising home prices and a gradual pickup in listings point to a market gaining momentum ahead of the spring season, though elevated borrowing costs continue to temper demand as buyers remain selective and affordability‑focused.

The median sale price in February was $350,000, increasing by 4.5% compared to the same month in 2025. Chicago ranked fourth among the 40 largest U.S. metros for annual price growth on a percentage basis, alongside Midwest peer markets such as Kansas City and Cleveland. On a dollar basis, Chicago ranked fifth among the top 40 markets, with average home prices rising $15,000 in February compared to a national increase of $885. Despite consistent appreciation in recent periods, Chicago remained among the most affordable markets in the nation, ranking 30^th among the 40 largest markets nationally for median sale price.

February’s 19,927 active listings represented a 5.2% increase from a year earlier, with nearly 1,000 additional homes available across the Chicago market. Supply has been rising consistently since the start of 2026 as sellers gear up for the spring homebuying season. However, inventory remained notably below pre-pandemic levels.

Chicago recorded 5,340 sales in February, a 7.8% decline with roughly 450 fewer closings than last February. Home sales fell across all property types, with condos leading the sharpest decline. Overall, demand remained contingent on improved inventory alignment, keeping some buyers on the sidelines as they wait for conditions that better match their financial expectations.

Chicago home sale prices increased by 4.5% in February compared to the same month the prior year, ranking among the top major metros in the U.S. for price growth.

Chicago’s median home price rose year over year in February, increasing by 4.5% to $350,000. In comparison, the median home price nationwide increased by 0.2% to $375,885 in February. Of the 40 largest markets in the nation, Chicago ranked fourth in annual percentage change in home prices. Peer Midwest markets such as Kansas City (3.7%) and Cleveland (3.6%) trailed closely behind Chicago.

Attached homes recorded 4.8% year-over-year price growth, translating to an increase of roughly $14,990. Single-family home prices rose 4.4% annually, or about $15,960, while condo prices increased 3.7%, representing a gain of approximately $10,050.

Chicago continues to stand out as one of the nation’s more affordable gateway markets, even amid consistent price growth. In February, the average home sale price reached $350,000, placing Chicago 30th among the 40 largest markets nationwide.

Chicago’s inventory reached 19,927 listings in February as sellers prepare for the spring homebuying season.

Chicago’s active listing totaled 19,927 in February, up 5.2% year over year. Nationally, inventory rose 14.2%, highlighting a more supply-constrained environment in Chicago relative to the broader U.S. market. Over the past three years, local inventory has declined 3.2%, compared to a 44.4% increase nationwide.

Chicago’s inventory growth was broad-based across all housing types. Single-family listings increased 5.6% year over year, townhome inventory rose 3.4%, and condo listings posted the slowest growth at 0.9%. Single-family homes accounted for the bulk of the supply, with 12,818 active listings, representing 64% of total inventory.

Of the six neighborhoods with the highest number of active listings, four are geographically contiguous. The downtown neighborhoods of River North and Streeterville rank first and second market wide, combining for just over 400 active listings. In Northwest Indiana, St. John and Crown Point also rank among the top six, together accounting for nearly 300 active listings.

Chicago recorded 5,340 sales in February, a 7.8% year-over-year decline, with 453 fewer closings than last February.

Chicago totaled 5,340 home sales in February, representing a 7.8% year-over-year decline. Despite ranking fourth nationally among the 40 largest markets by sales volume, Chicago ranked 28th in annual percentage growth.

Chicago ranked 37th among the 40 largest U.S. markets in terms of annual change in sales volume, with 453 fewer transactions than a year earlier. While the market continued to generate high overall sales activity relative to peers, the sharp decline in closings highlighted the outsized impact of affordability pressures and mortgage rate sensitivity in higher priced segments.

Home sales declined across all property types. Townhome sales fell 5.2% year over year, single-family home sales declined 7.4%, and condo sales posted the steepest drop at 10.3%. Single-family homes continued to dominate activity, accounting for 62% of total sales volume with 3,323 transactions.

For questions and commentary about this report:

Adrian Brizuela, Associate Director of Market Analytics at CoStar and Homes.com, based in Chicago, is available for interviews to provide expert insights on this data and the broader residential real estate market.

Adrian Brizuela

Associate Director of Market Analytics

Homes.com

abrizuela@costar.com

Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all transactions are accounted for, they provide an early indication of home price appreciation, inventory changes, and sales volume

in Chicago during February.

For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.

Definition of Sale Prices

Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Inventory

Inventory is the number of unique active listings that were for sale during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Home Sales

The total number of closed home sales on the MLS during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

About the Homes.com Market Analytics Team

The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.

About Homes.com Analytics Data

The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.

The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.