US real estate market: Property Values Surge 30% on Chicago's Magnificent Mile

Discover how the US real estate market is booming as property values rise 30% in Chicago's Magnificent Mile, home to iconic retailers and hotels.

In a remarkable turn of events, property values in a segment of Chicago—home to the illustrious retailers and luxurious hotels lining the Magnificent Mile—have surged by an impressive 30%. This increase encompasses both residential and commercial properties situated north of the Chicago River, reflecting significant shifts in the real estate landscape over the past three years. According to a statement from the assessor’s office, “Assessed value increased across all classes of property,” with multi-family buildings, such as apartments, and commercial properties experiencing the most substantial appreciation.

Chicago's last comprehensive assessment occurred in 2021, and this year marks the first valuation since the pandemic's disruptive influence began to wane. The assessor’s office initiated this process by unveiling its inaugural report in May, focusing on the vibrant Fulton Market area, which has been a beacon of economic activity. The only remaining valuation report for 2024 pertains to the Loop, the city’s central business district, which has not been immune to the broader challenges faced by urban centers worldwide.

These valuations play a critical role in determining how the property tax burden is allocated among businesses and residents alike. This year's appraisals are particularly scrutinized, as they encapsulate the pandemic's impact on the city, notably the soaring vacancy rates in office high-rises. Chicago, mirroring trends observed in cities across the globe, has grappled with commercial property distress, particularly within the Loop. As the city navigates these complexities, one can only hope that the US real estate market will find its footing, lest we witness a further exodus of businesses seeking greener pastures—or at least more affordable rents.