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Here are four of the top trends Chicago Real Estate Experts anticipate will continue to shape the 2015 real estate landscape:

Condos Popular

As buyer confidence grows and lending restrictions decrease, condominium sales – and pricing – will see an uptick in 2015. In the suburbs, developers such as Foxford Communities anticipate similar demand for new-construction units in 2015 given low inventory. Foxford sold more than half of its 72 units at Medinah on the Lake, a luxury condo conversion in Bloomingdale, Ill., in just six months following its 2014 opening, and expects swift sales in 2015 at its newest condominium community, Clocktower Pointe in Countryside, Ill.

Quality over Quantity

Customization will continue to be key. According to Brian Brunhofer, president of Meritus Homes, while new-home buyers aren’t hesitating to spend money on special touches, the trend is to splurge on high-impact, functional features rather than flashy aesthetic finishes. “Buyers can add virtually anything to our semi-custom home designs, but they also haven’t forgotten about the economic downturn, so they’re definitely discerning in their choices,” he said. “We are seeing a lot more long-term convenience enhancements, like tricked-out mudrooms and home automation systems.”

Jerry S. James, principal of Edward R. James Company, sees a large group of boomers looking to simplify, while still wanting the level of luxury to which they’ve grown accustomed. “They are seeking designs that are both elegant and appropriate to their lifestyle. First-floor master bedrooms are in, while fourth and fifth bedrooms, formal living rooms, and large yards are out. But smaller does not mean less luxurious. In fact, buyers are willing to spend as much or more on a per-square-foot basis than the dollar-per-foot value of the home they are coming from. Elements that personalize their home, including countertops, bathroom tiling, kitchen appliances, custom cabinetry and millwork – these are all still very important.”

Millennials Out in Force

With millennials projected to make up a third of the country’s adult population by 2020, it’s no surprise they’ve captured the attention of residential developers. Yet Gen Y has held off on buying their first home; in fact, the homeownership rate for the 35-and-under cohort dropped to 35.9 percent in the second quarter of 2014, its lowest level in two decades, and held steady at 36 percent in the third quarter, suggesting this group will drive demand for rental units in 2015 even as new supply comes online.

The Grandkid Revolution

Baby boomers are another large demographic that will be a prime focus for builders and developers in 2015. But unlike millennials, this group isn’t just looking for themselves – they also have grandchildren in mind.
When grandchildren travel downtown to visit residents at 500 Lake Shore Drive, being steps away from Navy Pier, Lake Michigan and other great cultural attractions can make the visit feel more like a vacation for everyone.

With more free time, many empty-nesters are focused on spending it with friends and grandchildren, so finding a place from which they can easily come and go without worrying about maintenance is a big factor, in addition to location. Westgate at The Glen, ERJ’s 171-unit maintenance-free community being developed in Glenview, Ill., is near the Kohl Children’s Museum, a 10-screen movie theater and a number of parks, while Brighton Mews in downtown Park Ridge, Ill., is within walking distance to the suburb’s core retail district, the historic Pickwick Theatre and the esteemed Park Ridge Public Library.

Next week, we will look at other trends you should consider when buying or selling a home.

2015 Real Estate Trends

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Marina Jacobson
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