Top 5 Factors Leading to Chicago’s Luxury Development Growth
If you’re in the market for viable investment opportunities in the real estate industry, there’s no better place to invest your money than in the city of Chicago. However, just like any other shrewd investor, a look at some of the factors leading to Chicago’s luxury development growth should be your priority before making any decision. These include the following.
1. Increased Employment
An increase in employment opportunities has seen more people moving to luxury neighborhoods in Chicago. This has spurred the development of luxury homes and apartments in downtown neighborhoods, considering the fact that more people can now afford to purchase or rent these homes.
2. Strong Value Gains
The high demand for luxury apartments in Chicago has attracted a significant increase in rent prices. Rents have increased by up to 15.5 percent over the past few years, attracting more investors in the industry as a result.
3. Low Interest Rates
Chicago has one of the lowest mortgage interest rates compared to other cities in the United States. These low rates have seen an upsurge in the demand for luxury properties. However, the interest rates have been increasing steadily as financial institutions leverage the increasing demand for new luxury homes.
4. Market Reactions
The local economy took a beating during the strenuous election period of 2016. Construction prices and the costs of raw materials skyrocketed following the uncertainties of these elections. However, the real estate sector recovered almost immediately after this period. The costs of construction and raw materials have now gone back to normal, leading to a boost in the industry.
5. Incentives and Goodwill From Local Authorities
Local authorities and state agencies have played a key role in spurring the development of luxury homes and office projects in Chicago. Currently, real estate developers enjoy tax breaks for various projects that meet specific requirements. Investors also receive federal income tax credits known as NMTCs that vary according to the size of the real estate investment.
Take the Next Step Today
Before investing in real estate, it’s always a wise idea to consult an expert in the industry. That’s why 33 Realty is here to help you identify the best investment opportunities for your preferences and budget. From property management to construction services, we’re a one-stop provider for everything that pertains to the real estate industry.
We’ll help you achieve over 50 percent in ROI, thanks to our shrewd, competent professionals who have a vast knowledge of the local area. Take full advantage of Chicago’s luxury development growth by contacting us today! We will certainly help you get the best deals on the market.