Noa’s Quick Summary of his south side thoughts
By Noa Birk
Multi-family prices are rising rapidly throughout the South Side of Chicago. In neighborhoods where buildings were selling for less than $30,000 per unit 18–24 months ago like Jackson Park, East Woodlawn, Washington Park and Bronzeville; we are now seeing buildings sell for over $100,000 per unit on the high end. The South Side of Chicago offers cash returns that are hard to duplicate in any other market across the country. As such, the sizable jump in pricing has primarily come from out of market investors. Buyers from New York, California, Canada, and China have been leading the way on the South Side.
With the record breaking prices in the above mentioned neighborhoods, areas like Chatham, Auburn Gresham, South Shore, Grand Crossing, and West Woodlawn are starting to feel impact. These neighborhoods continue to offer excellent value, and have now become the target of many buyers who feel priced out of East Woodlawn, Jackson Park, Washington Park and Bronzeville.
In previous years, financing acquisitions on the south side has been an obstacle for many buyers on the south side. In the last 12–18 months, we have seen large growth in the amount of banks looking to lend on the south side. The newly competitive environment for banks has yielded more desirable loan terms for buyers in comparison to previous years.