Illinois is in the Midwest region of the United States. The state is known for its diverse economy, rich history and numerous cultural attractions. Real estate investing in Illinois can be an excellent way to diversify your portfolio and generate long-term wealth. This article will explore the best real estate investment markets in Illinois, highlighting the pros and cons of each city.
- Chicago
- Naperville
- Evanston
- See All 8 Items
Chicago
Chicago is the third-largest city in the United States and the largest city in Illinois. It is a global hub for commerce, transportation and culture. Here are some pros and cons of investing in Chicago real estate:
Pros:
- Diverse economy with numerous industries such as finance, healthcare and technology
- Strong rental market with high demand and rental yields
- Numerous neighborhoods with a range of price points and investment opportunities
Cons:
- High property taxes compared to other cities in Illinois
- Some neighborhoods have higher crime rates
- Competition can be fierce for desirable properties
Naperville
Naperville is in the western suburbs of Chicago. It is known for its highly rated schools, low crime rates and high quality of life. Here are some pros and cons of investing in Naperville real estate:
Pros:
- Highly rated schools and low crime rates
- Strong job market in healthcare, technology and education
- High home values and rental yields
Cons:
- Limited inventory and competition for desirable properties
- High property taxes compared to other cities in Illinois
- Commute times can be long for those traveling to Chicago
Evanston
Evanston is on the north shore of Lake Michigan, just north of Chicago. It is home to Northwestern University and has a thriving arts and cultural scene. Here are some pros and cons of investing in Evanston real estate:
Pros:
- Strong rental market because of the high demand from university students and faculty
- Diverse economy with opportunities in healthcare, technology and education
- Access to lakefront amenities and cultural attractions
Cons:
- High property taxes compared to other cities in Illinois
- Limited inventory and competition for desirable properties
- Some neighborhoods have higher crime rates
Rockford
Rockford is in Northern Illinois, approximately 90 miles northwest of Chicago. It is known for its diverse economy, affordable housing market and numerous parks and outdoor recreation opportunities. Here are some pros and cons of investing in Rockford real estate:
Pros:
- Affordable housing market with lower home prices and rents
- Diverse economy with opportunities in manufacturing, healthcare and education
- Access to numerous parks and outdoor recreation opportunities
Cons:
- Higher crime rates compared to other cities in Illinois
- Limited job market compared to larger cities
- Some neighborhoods have lower property values and rental yields
Springfield
Springfield, the capitol of Illinois, is in Central Illinois. It is known for its rich history, government institutions and numerous cultural attractions. Here are some pros and cons of investing in Springfield real estate:
Pros:
- Affordable housing market with lower home prices and rents
- Government institutions and healthcare industry provide stable job market
- Rich history and cultural attractions such as the Abraham Lincoln Presidential Library and Museum
Cons:
- Limited job market compared to larger cities in Illinois
- Competition can be fierce for desirable properties
- Some neighborhoods have lower property values and rental yields
Champaign-Urbana
Champaign-Urbana is a metropolitan area in east-central Illinois. It is home to the University of Illinois and is known for its strong technology industry and cultural attractions. Here are some pros and cons of investing in Champaign-Urbana real estate:
Pros:
- Strong rental market because of high demand from university students and faculty
- Growing technology industry
- Access to cultural attractions such as the Krannert Center for the Performing Arts
Cons:
- Limited inventory and competition for desirable properties
- Some neighborhoods have lower property values and rental yields
- Commute times can be long for those traveling to other cities in Illinois
Real Estate Investing Platforms
- Best For:$100 Minimum InvestmentVIEW PROS & CONS:securely through Arrived Homes's website
- Best For:Diverse Range of Alternative AssetsVIEW PROS & CONS:securely through Yieldstreet's website
- Best For:Beginner Real Estate InvestorsVIEW PROS & CONS:securely through Fundrise's website
This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Benzinga.com. All opinions are our own.
- Best For:Commercial Real Estate InvestorsVIEW PROS & CONS:securely through First National Realty Partners's website
Frequently Asked Questions
Is it a good time to invest in real estate in Illinois?
Yes, it can be a good time to invest in real estate in Illinois, especially in cities with growing job markets and demand for housing. It’s important to do your research and consult with a real estate professional to make informed investment decisions.
What are some of the costs associated with investing in real estate in Illinois?
Some of the costs associated with investing in real estate in Illinois include property taxes, mortgage payments, maintenance and repairs, insurance and property management fees. It’s important to factor these costs into your investment calculations.
How can you finance your real estate investment in Illinois?
Several financing options are available for real estate investment in Illinois, including traditional mortgages, private lenders and investment partnerships. It’s important to consider the terms, interest rates and repayment schedules of each option to determine what works best for your investment goals.
