How Chicago’s Housing Market Compares to the Rest of the U.S.
Last week, we looked at how Chicago’s housing market is holding its own in a pretty strange national environment. This week, let’s zoom out. A lot of U.S. metros are going through real shifts, while Chicago keeps moving along at a steadier pace. That stability really matters if you’re relying on real estate valuation services to make good decisions about buying, selling, or lending.
What’s Going On in Other U.S. Markets?
If you only read headlines, the U.S. housing market sounds confusing: prices up in some places, down in others, buyers “back in control” here, sellers still strong there. When you dig into the data, you start to see a clear pattern: the market is splitting.
Here are a few big signals:
- More markets leaning toward buyers. Redfin reported that in October 2025 there were roughly 36.8% more home sellers than buyers, making it the strongest buyers’ market in more than a decade in many large metros. Source: Redfin buyers’ market report – Buyer’s Markets According to Redfin
- Inventory coming back in several states. Fast Company highlighted 17 states that now have more homes on the market than they did in October 2019, before the pandemic run-up. That extra supply gives buyers more leverage in those areas. Source: Fast Company inventory analysis – Fast Company Inventory Analysis
- But we’re still short millions of homes overall. Research from Goldman Sachs estimates the U.S. needs roughly 3–4 million additional housing units just to get back to more normal affordability. So even as some markets cool, the bigger supply problem hasn’t gone away. Source: Goldman Sachs housing supply outlook – Housing Supply and Affordability Outlook
- Prices rising in some metros, falling in others. Zillow’s data shows home values rising in roughly half the country and slipping in the other half, with a clear split between some of the pandemic “boomtowns” and more stable markets in the Midwest and Northeast. Source: Zillow home value divide – Home Price Rise and Falls
Put simply: the national market is not moving in one direction. That’s why local data and solid real estate valuation services matter so much right now. The story in Phoenix or Tampa is not the story in Chicago.
Chicago: Steady, Predictable, and Still Moving
Compared with those more volatile markets, Chicago looks… calm. Almost boring — in a good way.
- The Chicago metro median home price was about $375,000 in August 2025, up around 5.6% year-over-year. Source: Illinois REALTORS® – Illinois Realtors Pricing Report
- Inside the city of Chicago, the median price was roughly $376,000, up about 5.9% from a year earlier, while the number of homes for sale in the city was down more than 20%. Same source: Illinois REALTORS® – Illinois Realtors City of Chicago Pricing
- A separate look at Illinois housing stock notes that overall supply remains “woefully low” across the state, which helps explain why prices are still inching up instead of sliding backwards. Source: Illinois Policy housing stock report – Illinois Stock Report
In short: Chicago isn’t booming or crashing — it’s just… steady. And in a year when other markets are swinging one way or the other, that alone is newsworthy.
How Does Chicago Compare to Other Major Metros?
National research from Zillow and others has highlighted a growing divide between certain Sun Belt and West Coast markets versus more mature markets in the Midwest and Northeast. In many of the “boom” markets, prices are flattening or declining and listings are rising. Meanwhile, markets like Chicago remain more balanced.
| Region / Metro Type | Current Trends | Implications for Valuation |
|---|---|---|
| Sun Belt & West Coast (e.g., Austin, Phoenix, Tampa) | Many metros are experiencing price softening, increased inventory, and longer days on market (Zillow housing divide analysis). | Higher volatility and potential downside risk. Valuations often require more conservative assumptions and careful stress-testing. |
| Midwest & Northeast (including Chicago) | Generally steadier price growth, tighter supply, and fewer speculative swings, supported by local employment bases and slower construction cycles. | More reliable comparables and a stronger case for value retention. This environment can support more confident decision-making in real estate valuation services. |
Why Stability Matters When You’re Making Big Decisions
When you’re buying, selling, financing, or holding property, what you really care about is risk: “How likely is this value to hold, and what could change it?” A steady market like Chicago gives you a different risk profile than a market that’s suddenly cooling.
- Clearer risk assessment – In a stable market, it’s easier to see trends and understand whether a property is fairly priced. You’re not trying to hit a moving target.
- Better comparables – Consistent sales activity and pricing patterns mean appraisers can choose comps that actually reflect today’s reality, not last spring’s spike.
- More confident lending and investing – Lenders and investors tend to feel more comfortable underwriting deals in markets where the floor isn’t constantly shifting.
- Stronger advice for multi-market clients – If you work with clients who own property in several states, the ability to contrast a steady market like Chicago against more volatile metros is a big value-add for your real estate valuation services.
What Buyers, Sellers, and Lenders Should Take Away
The big takeaway is simple: national housing headlines don’t tell Chicago’s story. While many markets are wrestling with sharp swings, Chicago is doing what it often does—moving gradually, not dramatically.
The big takeaway is simple: national housing headlines don’t tell Chicago’s story. While many markets are wrestling with sharp swings, Chicago is doing what it often does—moving gradually, not dramatically.
Need a trusted local expert?
Contact Real Valuation Services today to schedule your house appraisal in Chicago and ensure your property’s value reflects today’s market reality.