Next gentrifying neighborhoods in and around Chicago MultiUnit
Member since 2022 · 10 posts · 10 votes
Next gentrifying neighborhoods in and around Chicago MultiUnit
Most Popular Reply
Member since 2022 · 12 posts · 16 votes
4ythis right here is the gem advice. This was Ukrainian village, wicker, Humboldt park (this one I never understood since it’s not near a train), west loop, university village, little village, and Pilsen.
Gentrification starts with racism. Call it nicely it’s market inefficiency but recognize that Chicago historically is a very segregated city. It was only within the last 30 years has the upper middle class incomes start to spread out of the lake.
Gentrification follows the formula of cheap rent+ east commute to downtown + open vacant space for restaurants and bars + proximity to another gentrified neighborhood that is getting to expensive so people expand their search to surrounding. Thats the wicker, buck town, logan , and now Avondale expansion.
There are some area I don’t think will ever gentrify even in the north side. Like Albany park. It just lacks the opportunity for commute and restaurant scene. Chicago has no east west train line that it really needs, It’s already too expensive for anyone to invest, but not expensive enough to really build out. It’s just going to slowing increase with inflation. The closer to get to i94 the more valuable it’ll be, but it won’t go crazy like Logan or Avondale.
The south side is great opportunity, but growing up in the south side I can tell you That anything south of 31st is gonna be for a long hauler. The reality is there’s too much space to fill up as part of the gentrification. The density isn’t there and won’t get there for a long while. Chicago need another million people in population to force us to push south. You can see Bridgeport is just building in old industrial space. Pilsen is filling in and replacing buildings north of cermak. But there’s still quite a bit of open availability that needs to fill in before expansion occurs.
37 Replies
- 4yEudith VacioPro MemberReal Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
LOL @John Hu
Hey @Veronica Mitchell - there are many great neighborhoods to invest in Chicago. Are you looking to live in one unit and rent the others? What are you looking to do? Most of my investments are on the south side of Chicago.
- Member since 2021 · 2 posts · 1 vote4y
Make sure you do your math correctly when analyzing property taxes…they will be eye opening. Best of luck.
- Member since 2022 · 10 posts · 10 votes4y
Quote from @Eudith Vacio:
LOL @John Hu
Hey @Veronica Mitchell - there are many great neighborhoods to invest in Chicago. Are you looking to live in one unit and rent the others? What are you looking to do? Most of my investments are on the south side of Chicago.
Yes, I'm looking at 4 plex units renting the three and living in the other intersted in the more up and coming areas. I'm interested to know because you invest in the southside what do you see as the perks in the future investment there?
- Member since 2022 · 10 posts · 10 votes4y
Quote from @Daniel Gorman:
Make sure you do your math correctly when analyzing property taxes…they will be eye opening. Best of luck.
YES! that's a huge concern of mines now
- Member since 2022 · 10 posts · 10 votes4y
Quote from @John Hu:
whatever you do.. stay away from Jefferson Park... especially areas south of the blue line... I don't need to compete against other investors in my stomping grounds... lol
LOL, come on there is room for every investor....
- Member since 2022 · 12 posts · 16 votes4y
Quote from @Veronica Mitchell:
Quote from @John Hu:
whatever you do.. stay away from Jefferson Park... especially areas south of the blue line... I don't need to compete against other investors in my stomping grounds... lol
LOL, come on there is room for every investor....
follow the train lines has been my tactic. Jefferson park around the blue line, up and down milwaukee has all the precursors to becoming a gentrified location. It’s easy access to the other neighborhoods Lots of potential development space for bars and restaurants Lake effect brewing is dumping money into a brew pub. Lots of upscale single family homes are coming up so people with money are moving into the area. It’s only time before commerce and gentrification follows…
There are lots of 2/3 flats in the area with reasonable pricing etc…
- Member since 2018 · 1k+ posts · 1k+ votes4y
Quote from @Veronica Mitchell:
Yes, I'm looking at 4 plex units renting the three and living in the other interested in the more up and coming areas. I'm interested to know because you invest in the South side what do you see as the perks in the future investment there?---------------------------------------
The fact that you are looking at "up and coming" areas tells me that you put more emphasis on appreciation than on cash flow. That's fine. Seeing as how in today's society the rich get richer and incomes aren't keeping up with the stock market, people in rich areas can afford richer rents. Given that birds of a feather flock together, I think you're looking to live almost-rent-free whilst coining it on appreciation. Am I right? You may pull it off.
Still, there's something to be said for the critical mass, many baskets, safe-if-boring neighborhoods. The South side of Chicago abounds with those. Chosen right, some of those South side neighborhoods may become hot, and give you large amounts (percentage-wise) of appreciation. How, and why, do you select them?
First, look for market inefficiencies. One of those inefficiencies is race aversion, if not outright racism. That means that you can buy a house on the South side -- identical to one on the North side and in its doppleganger (save race) neighborhood -- for literally a $100,000 less than you can on the North side. So an identical neighborhood (income, crime, school quality, etc.) can cost you as much as a $100k less on the South side simply because your neighbors are brown or black as opposed to white.
Second, look for infrastructure similarities. Proximity to mass transit (mentioned by another poster re following them), proximity to downtown (maybe not so much now with work-from-home being a thing), proximity to airports, highways, pollution-belching industrial plants, hospitals, universities, the lake, etc., all help to define which South side neighborhoods have what it takes to overcome market inefficiencies and become "up and coming."
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes4y
The trend is your friend. Looking for a turn around scanrio is an ego pleaser, makes for a great story if it works, but high risk it will never pan out the way you thought. Ask anyone investing in anticipantion of Foxcon..
- Member since 2022 · 12 posts · 16 votes4y
this right here is the gem advice. This was Ukrainian village, wicker, Humboldt park (this one I never understood since it’s not near a train), west loop, university village, little village, and Pilsen.
Gentrification starts with racism. Call it nicely it’s market inefficiency but recognize that Chicago historically is a very segregated city. It was only within the last 30 years has the upper middle class incomes start to spread out of the lake.Gentrification follows the formula of cheap rent+ east commute to downtown + open vacant space for restaurants and bars + proximity to another gentrified neighborhood that is getting to expensive so people expand their search to surrounding. Thats the wicker, buck town, logan , and now Avondale expansion.
There are some area I don’t think will ever gentrify even in the north side. Like Albany park. It just lacks the opportunity for commute and restaurant scene. Chicago has no east west train line that it really needs, It’s already too expensive for anyone to invest, but not expensive enough to really build out. It’s just going to slowing increase with inflation. The closer to get to i94 the more valuable it’ll be, but it won’t go crazy like Logan or Avondale.
The south side is great opportunity, but growing up in the south side I can tell you That anything south of 31st is gonna be for a long hauler. The reality is there’s too much space to fill up as part of the gentrification. The density isn’t there and won’t get there for a long while. Chicago need another million people in population to force us to push south. You can see Bridgeport is just building in old industrial space. Pilsen is filling in and replacing buildings north of cermak. But there’s still quite a bit of open availability that needs to fill in before expansion occurs.
- Member since 2018 · 1k+ posts · 1k+ votes4moThis is where my rather strict definition of gentrification comes in for me. Gentrification is when a location is so "hot" that it is more economic to buy a parcel, tear down the existing building, and put in new. This is particularly true when the new building is built on the come.
Quote from @John Hu:
There are some area I don’t think will ever gentrify even in the north side. Like Albany park. It just lacks the opportunity for commute and restaurant scene.
So neighborhoods that gentrify have to pretty much hit bottom -- or have some other keen attribute -- before they can ripe for gentrification. Otherwise it's just improvement. Improvement can be rapid and make for some great appreciation plays, but it's not the white-hot appreciation of gentrification.
Albany Park and Mayfair (the neighborhood to the West, past Crawford) will never gentrify because they never fell. They improved and will improve, but you won't put the kids through college on the proceeds.
The areas I like are the same thing. West Lawn, West Elsdon, Archer Heights, Bridgton Park, McKinley Park -- they all follow the Orange Line and are improving. They never got to the point of tear down and spec. build, and they never will. Primarily latino, however, so they don't feel the love they would if white.
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes4y
Quote from @Veronica Mitchell:
I'm looking to see what are some of the multi-unit in and around Chicago area to buy in?
The next gentrifying neighborhoods in Chicago are: Lower West Side; Humboldt Park, Gage Park, Ashburn, South deering, Hegewisch, Garfield Ridge & West Elsdon. - Member since 2021 · 49 posts · 29 votes4y
North Lawndale, East GP, and anywhere within a 15 min train ride.
- Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes4y
North side: Avondale, west logan square, albany park, rogers park
South side: Bronzeville, brighton park, mckinley park, bridgeport, west half of pilsen
I agree with “trend is your friend” and avoid areas that might but havnt popped off. All these areas have started gentrification path and have a lot of room to continue growing. - Investor · Chicago, IL · Member since 2019 · 58 posts · 44 votes4y
Quote from @John Hu:
whatever you do.. stay away from Jefferson Park... especially areas south of the blue line... I don't need to compete against other investors in my stomping grounds... lol
we will be neighbors need month more than likely
- Member since 2018 · 1k+ posts · 1k+ votes4y
I have a very simple criteria for when an area is gentrifying as opposed to just generally improving: If it makes economic sense to buy (at market price) and tear down an existing structure in order to build and immediately sell a new building, then the area is gentrifying. General improvement is not gentrification.
So gentrification only occurs in areas with the right infrastructure that have hit bottom. Albany Park, West Elsdon, Hegewisch -- those places will never gentrify. They will improve, but never "pop." Why? They never hit bottom. Bronzeville hit bottom. It's gentrifying.
- 4yEudith VacioPro MemberReal Estate Agent · Chicago & NWI · Member since 2015 · 860 posts · 521 votes
@Veronica Mitchell. -gotcha! And have you looked into the link below, the Invest Southwest program?
- Real Estate Agent · Chicago, IL. · Member since 2019 · 25 posts · 26 votes4y
I'm personally looking in North Lawndale and East Garfield Park. NL is close to both 290 and the Pink Line, and close to the Medical District, great for medical staff and possibly traveling nurses. East Garfield Park has proximity to Blue and Green Line, and is just west of UC and Fulton Market. Just depends on your strategy but my best advice is to take a drive through those areas. Don't be discouraged but rather see opportunity and calculated risks.
- Chicago · Member since 2018 · 216 posts · 165 votes4y
Quote from @John Hu:
this right here is the gem advice. This was Ukrainian village, wicker, Humboldt park (this one I never understood since it’s not near a train), west loop, university village, little village, and Pilsen.
Gentrification starts with racism. Call it nicely it’s market inefficiency but recognize that Chicago historically is a very segregated city. It was only within the last 30 years has the upper middle class incomes start to spread out of the lake.Gentrification follows the formula of cheap rent+ east commute to downtown + open vacant space for restaurants and bars + proximity to another gentrified neighborhood that is getting to expensive so people expand their search to surrounding. Thats the wicker, buck town, logan , and now Avondale expansion.
There are some area I don’t think will ever gentrify even in the north side. Like Albany park. It just lacks the opportunity for commute and restaurant scene. Chicago has no east west train line that it really needs, It’s already too expensive for anyone to invest, but not expensive enough to really build out. It’s just going to slowing increase with inflation. The closer to get to i94 the more valuable it’ll be, but it won’t go crazy like Logan or Avondale.
The south side is great opportunity, but growing up in the south side I can tell you That anything south of 31st is gonna be for a long hauler. The reality is there’s too much space to fill up as part of the gentrification. The density isn’t there and won’t get there for a long while. Chicago need another million people in population to force us to push south. You can see Bridgeport is just building in old industrial space. Pilsen is filling in and replacing buildings north of cermak. But there’s still quite a bit of open availability that needs to fill in before expansion occurs.
I like your post and you obviously know Chicago but a lot of what you are saying is just plain wrong. First, Albany Park is at the end of the Brown Line. Very nice. My buddy's 3-flat just sold for $100K more than what he paid for it a year earlier. You can walk to the end of the brown line from the building.
South of 31st is in for the long haul? Have you seen McKinley Park? Brighton Park? Archer Heights? Have you seen what's happening around Midway? It's starting to look like Schaumburg.
All that said I like Little Village a lot. It has come up quite a bit, still is a bit dangerous but appears to have plenty of room for improvement and appreciation. I always say: follow the El lines and it's along the Pink Line and the next west neighborhood from Pilsen.
- Member since 2022 · 12 posts · 16 votes4y
Quote from @Tom O.:
Quote from @John Hu:
this right here is the gem advice. This was Ukrainian village, wicker, Humboldt park (this one I never understood since it’s not near a train), west loop, university village, little village, and Pilsen.
Gentrification starts with racism. Call it nicely it’s market inefficiency but recognize that Chicago historically is a very segregated city. It was only within the last 30 years has the upper middle class incomes start to spread out of the lake.Gentrification follows the formula of cheap rent+ east commute to downtown + open vacant space for restaurants and bars + proximity to another gentrified neighborhood that is getting to expensive so people expand their search to surrounding. Thats the wicker, buck town, logan , and now Avondale expansion.
There are some area I don’t think will ever gentrify even in the north side. Like Albany park. It just lacks the opportunity for commute and restaurant scene. Chicago has no east west train line that it really needs, It’s already too expensive for anyone to invest, but not expensive enough to really build out. It’s just going to slowing increase with inflation. The closer to get to i94 the more valuable it’ll be, but it won’t go crazy like Logan or Avondale.
The south side is great opportunity, but growing up in the south side I can tell you That anything south of 31st is gonna be for a long hauler. The reality is there’s too much space to fill up as part of the gentrification. The density isn’t there and won’t get there for a long while. Chicago need another million people in population to force us to push south. You can see Bridgeport is just building in old industrial space. Pilsen is filling in and replacing buildings north of cermak. But there’s still quite a bit of open availability that needs to fill in before expansion occurs.
I like your post and you obviously know Chicago but a lot of what you are saying is just plain wrong. First, Albany Park is at the end of the Brown Line. Very nice. My buddy's 3-flat just sold for $100K more than what he paid for it a year earlier. You can walk to the end of the brown line from the building.
South of 31st is in for the long haul? Have you seen McKinley Park? Brighton Park? Archer Heights? Have you seen what's happening around Midway? It's starting to look like Schaumburg.
All that said I like Little Village a lot. It has come up quite a bit, still is a bit dangerous but appears to have plenty of room for improvement and appreciation. I always say: follow the El lines and it's along the Pink Line and the next west neighborhood from Pilsen.
Albany park southeast corner where brown line ends sure. But if you go north and west there’s not a whole lot there.
And your point about looking a whole lot like Schaumburg. That’s what I mean. It’s filling out in a less dense manner cuz there’s so much space. It’s not Lincoln park, wicker park or Logan square density. I’m just saying there a correlation between density and property values.
- Chicago · Member since 2018 · 216 posts · 165 votes4y
Quote from @Crystal Smith:
Quote from @Veronica Mitchell:
I'm looking to see what are some of the multi-unit in and around Chicago area to buy in?
The next gentrifying neighborhoods in Chicago are: Lower West Side; Humboldt Park, Gage Park, Ashburn, South deering, Hegewisch, Garfield Ridge & West Elsdon.What about Little Village? Seems to be on its way up.
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes4y
@Veronica Mitchell - A little bit of an open-ended question since Chicago is just so massive and has a ridiculous amount of mult-family properties. What type of neighborhoods and sizes of properties are you considering?
I'd link up with some of the awesome agents above like @Eudith Vacio or @Edgar Barbosa and have them guide you through the city and what it has to offer based on your buying criteria.
Quality Builders4.966 Reviews - Member since 2020 · 16 posts · 6 votes4y
Quote from @John Clark:
Quote from @Veronica Mitchell:
Yes, I'm looking at 4 plex units renting the three and living in the other interested in the more up and coming areas. I'm interested to know because you invest in the South side what do you see as the perks in the future investment there?---------------------------------------
The fact that you are looking at "up and coming" areas tells me that you put more emphasis on appreciation than on cash flow. That's fine. Seeing as how in today's society the rich get richer and incomes aren't keeping up with the stock market, people in rich areas can afford richer rents. Given that birds of a feather flock together, I think you're looking to live almost-rent-free whilst coining it on appreciation. Am I right? You may pull it off.
Still, there's something to be said for the critical mass, many baskets, safe-if-boring neighborhoods. The South side of Chicago abounds with those. Chosen right, some of those South side neighborhoods may become hot, and give you large amounts (percentage-wise) of appreciation. How, and why, do you select them?
First, look for market inefficiencies. One of those inefficiencies is race aversion, if not outright racism. That means that you can buy a house on the South side -- identical to one on the North side and in its doppleganger (save race) neighborhood -- for literally a $100,000 less than you can on the North side. So an identical neighborhood (income, crime, school quality, etc.) can cost you as much as a $100k less on the South side simply because your neighbors are brown or black as opposed to white.
Second, look for infrastructure similarities. Proximity to mass transit (mentioned by another poster re following them), proximity to downtown (maybe not so much now with work-from-home being a thing), proximity to airports, highways, pollution-belching industrial plants, hospitals, universities, the lake, etc., all help to define which South side neighborhoods have what it takes to overcome market inefficiencies and become "up and coming."
thanks
- 1ySean WagnerBusiness MemberReal Estate Broker · Chicago · Member since 2021 · 20 posts · 14 votes
Anything around the Ogden corridor, the immediate area around the United Center, and Little Village
- Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes1y
Hey Hey @Veronica Mitchell - The most simple advice is to follow the CTA trainlines.
I personally love the South East Corridor of Chicago which has Bronzesville, Kenwood, Washington Park, Hyde Park, Woodlawn, and South Shore.
That area will continue to be gentrified because you have the lakefront and CTA trains.
Others mentioned NW along the Blue and West along the Pink, Green, and Blue lines.
Quality Builders4.966 Reviews
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