Chicago-Area Homebuilders See Strong Sales in Q1 Amid Supply-and-Demand Scenario

Strategic Insights -

A new report from Tracy Cross & Associates, a consultant to the homebuilding industry, reveals that Chicago-area homebuilders had a robust start to the year, with sales of 1,568 newly built houses, condos, and townhouses in the first three months of 2025. This represents a 10.4% increase from the same time last year and one of the strongest openers to a year in the past decade.

Key Takeaways:

  • The first quarter of 2025 saw the highest sales volume in the Chicago area since 2022, when the market was driven by the COVID-era housing boom.
  • The increase in sales is largely due to a supply-and-demand scenario, with a significant gap between the number of developments selling new homes and the demand for housing.
  • The number of Chicago-area developments selling new homes increased from 243 in 2024 to 246 in 2025, and builders are putting up more units in existing developments to meet pent-up demand.
  • Most of the growth in sales was in attached housing, with sales of condos and townhouses increasing by 31% in the first quarter compared to the same time last year.
  • Although the low supply of homes is attributed to factors such as job centers moving back into the city and high levels of regulation, the increased sales are driven by a combination of factors, including the appeal of new developments with convenient locations.

Statistics:

  • 1,568 newly built houses, condos, and townhouses were sold in the first three months of 2025, a 10.4% increase from the same time last year.
  • The sales figure represents one of the strongest openers to a year in the past decade.
  • Attached housing sales increased by 31% in the first quarter, with sales of condos and townhouses totaling 613.
  • The number of developments selling new homes in the Chicago area is still low, with only 246 developments selling new homes in 2025, compared to 243 in 2024.
  • The first quarter of 2025 saw an increase of 13.8% in sales compared to the same time period in 2022, when the market was driven by the COVID-era housing boom.

Sources:

  • Tracy Cross & Associates, a consultant to the homebuilding industry
  • U.S. Census Bureau and the Department of Housing & Urban Development
  • Crain Communications Inc.
  • Keller Williams Premiere
  • Metropolitan Transit Authority (Metra)