Schaumburg-based housing analyst Tracy Cross estimates that there have been 46 major condominium conversions in the city since 1993. The simple laws of supply and demand have dictated rising rents in Chicago apartments, while record-low interest rates, affordable product, and low down payment programs have made ownership a possibility for more buyers than ever before. New construction also has been enjoying rapid sales, and high costs for land, labor and materials have made condominium development much easier than single-family house construction. The general trends behind the city's robust real estate market have been well documented and are also the roots beneath the boom in condominiums. The economy and stock market remain strong after an unprecedented eight straight years of growth.
Interest rates are low, and in Chicago, employment is high.
The largest corridor of employment in the area remains just west of O'Hare Airport, according to Cross. New suburban development has pushed to distant locations that now require longer commutes than a city address does, Cross says. Meanwhile, crime is down and entertainment, nightlife and the physical cityscape are up in Chicago. According to Cross, the city has gone from a 3 percent share of the metropolitan area market in 1993 to 14 percent today. One new trend is the development of brand new highrise condominium buildings.