It isn’t your imagination: buying your first Chicago area home is harder today than it was a few years ago. Here’s the difference in market conditions over the past five years!
Home prices in the City of Chicago increased by an average of 30% between 2020 and 2025. As of August 2025, the median home price in Chicago was $376,000. Back in 2020, the median home price in Chicago was $290,000.
Mortgage interest rates averaged about 3% during 2020, for a 30-year fixed Conventional loan. As of early October 2025, the same mortgage averaged a rate of 6.34%. That means a much higher mortgage payment, and less purchase power. For example, a $300,000 mortgage loan, at 3% interest, would have a principal and interest payment of about $1,265 per month. But a $300,000 mortgage loan at 6.34%, has a principal and interest payment of $1,860.
Property taxes in Cook County have been climbing. The average property tax bill in Cook County was about $3,800 for a single-family home in 2020. As of 2024, the average property tax bill on a single-family home was $5,800.
Homeowners insurance premiums in the Chicago area have increased by about 46% between 2021 and 2024. Premiums have been going up during 2025 as well.
The real estate conditions playing out in Chicago are not isolated events. Home buying has become more expensive in many areas of the country. And the factors driving those conditions – such as gentrifying neighborhoods, limited home inventory, and rising ownership costs, are ongoing issues. In other words, today’s home prices could look like bargains in the future!
So don’t be discouraged. Be prepared instead! Information and education are your best advantages in an ever-changing market. That’s where we come in!
StartingPoint Realty – proudly serving first-time Chicago Area home buyers since 2004!
When you’re preparing to buy your first home, get complete guidance from StartingPoint Realty! We serve first-time home buyers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! There is no obligation, and no sales pitch, just honest information. Contact us today for your free consultation!
Ryan Gable, Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@startingpointrealty.com
Become a StartingPoint Realty Facebook Fan
Follow StartingPoint Realty on Twitter