Chicago Real Estate Recap in July 2025: Rising Prices, Bipartisan Housing Reform & Growing Foreign Buyer Influence
Chicago’s real estate scene is evolving amid both local strength and national shifts. With record prices, legislative momentum, and global buyer interest, stakeholders must understand how these storylines intersect.
Chicago Home Prices at All-Time High
According to Illinois Realtors, Chicago’s June median sale price climbed to $400,000 - a 5.8% increase year-over-year and a new local record. While nationwide price growth slows, Midwest markets remain relatively stable. Inventory constraints and steady demand continue to underpin Chicago’s resilience, even as economic forces weigh on other regions.
The ROAD to Housing Act Advances
The Senate Banking Committee has approved the bipartisan ROAD to Housing Act of 2025. The bill targets zoning reform, streamlined reviews, and support for modular and manufactured homes - suggesting structural change that could expand supply and relieve affordability pressures in dense markets like Chicago. If passed, it may accelerate regulatory reforms at the local level.
Foreign Buyers Return in Force
Foreign home purchases jumped 44% in 2025, totaling around 78,100 units. These buyers often pay cash and focus on upper-tier properties, with an average price of $490,000 - above the national median. For Chicago, this trend could heighten competition in the luxury segment and influence pricing strategy and marketing.
Conclusion
Chicago’s real estate narrative in mid-2025 combines enduring local strength with emerging national dynamics. Home prices continue to tick upward despite broader cooling, legislative shift promises new frameworks for supply, and foreign capital is returning to premium markets. For buyers, sellers, policymakers, and developers, the message is clear: Chicago remains a fundamental hub - but adapting to evolving demand and regulatory change will be key to staying competitive.
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