Discover Why Real Estate Investors Are Adding Chicago to Their Portfolio

At Patch of Land, we have always focused on the importance of neighborhood revitalization and believe that real estate investors can make a profit while still doing good. In this article, we’re going to look at the many benefits of investing in real estate in the Windy City, and why there is more to love in Chicago than just ridiculously good deep-dish pizza.

For many, the allure of Chicago starts with its diversity, deep history and exceptional culture. Known for repeatedly re-inventing itself, Chicago started as a fur trading post with the local Indian tribes, survived the great Chicago Fire in the late 1800’s, has become a major transportation hub, a capital for agribusiness and pharmaceutical manufacturing, and is considered a world-wide epicenter for architecture, jazz and the blues.

According to the City of Chicago’s Official site, Chicago is the largest city in Illinois and is home to approximately 2.6 million residents, making it the third largest city in the United States, behind New York and Los Angeles. These residents have a true civic pride in their communities  - holding a deep love for their sports teams and more - and, given the chance to revitalize it, they’ll take it!

What makes Chicago an attractive place to invest in real estate? This vibrant and multicultural city is filled with diverse neighborhoods and, as mentioned, has become a center for international trade and commerce. Home to the nation’s first skyscraper, historic Route 66 and the first ferris wheel, Chicago made its mark establishing itself as both an industrial and innovative locale. Today, the city of Chicago offers dozens of historical sites and museums sure to enlighten even the faintest history buff, with hundreds of theaters and art galleries.

As a whole, foreclosed properties are hitting the market at low costs making these locations prime for real estate rehab programs and, with the support of federally funded projects such as the Neighborhood Stabilization Program, it’s happening! With an economy that is continuing to gain momentum and strength, it’s no wonder investors are seizing the opportunities to get involved. But it’s not just the individual investors...

According to Chicago NSP, creating high-quality, energy efficient housing in neighborhoods has re-ignited the local markets and allows more wiggle room when it comes to affordability for buyers and renters. Much of this revival has launched an increase in community confidence, economic development and job growth.

These sponsored programs, led by the city, have been designed to encourage rehab development and protect the integrity of the surrounding areas. Chicago NSP, for example, has been on a mission to acquire similar properties in 29 different neighborhoods in the Chicago area in hopes of returning previously abandoned or foreclosed homes hit during the collapse of the housing market, to productive single-family houses or apartment buildings. It is not uncommon to see these new buildings become learning centers, rehab or safe houses, and other centers designed to help the community and its residents.

Related: Top 5 Fix and Flip Real Estate Investing Tips

The Green Effect

A similar program, the Green Healthy Neighborhoods proposal, is designed to increase and create new park spaces while adding appeal to the community in an effort to attract potential private investors and new development to the South side of Chicago, such as: Englewood, West Englewood, Washington Park and Woodlawn community areas as well as parts of the New City, Fuller Park and Greater Grand Crossing community. While the City of Chicago and the seven-county area are projected by Chicago Metropolitan Agency for Planning (CMAP) to grow by approximately 15% in population and 28% in households by 2040, the Green Healthy Neighborhood area is anticipated to modestly increase by 4% and 12%. Chicago, its residents, investors and stakeholders believe in this project, and are seeing excellent momentum.

Other examples of city efforts include Englewood becoming a prime center for urban culture, the redeveloping the Celodex industrial site into a park in Little Village, and the introduction of pedestrian-friendly streetscapes into Uptown.

It is clear that Chicago believes in the reshaping and growth of their prosperous community. City support and new growth in development projects are just two of the indicators that it might be a good idea to get involved by investing in Chicago real estate.

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Getting Involved

The implementation of these projects represents a new beginning for neighborhoods trying to fight the years of stagnant growth, and will continue to keep the momentum moving in Chicago’s favor. At Patch of Land, we hope this has given you some insight into why Chicago is a prime location for real estate investment.

"It is hopeless for the occasional visitor to try to keep up with Chicago. She outgrows his prophecies faster than he can make them." - Mark Twain, 1883

With the help of the city’s efforts, major headway is being made; however, there is still a wealth of alternative investment opportunities available for the savvy investor. We have already funded several projects in the Chicago area and will continue to support such a historic and culturally diverse city. Contact us today if you have more questions and together we can make a difference.

If you want to learn more about what initiatives have positively changed the landscape of Chicago's real estate market, take a look at our FREE analytic whitepaper - The Chicago Report.

Also if you're curious about how Patch of Land can work for professional real estate developers and accredited investors, please visit Patch of Land’s FAQ section and learn more today.