Featuring the perspectives of local executives in new construction:

Jeff Benach
Principal, Lexington Homes

Liz Brooks
Executive Vice President of Sales and Marketing, Belgravia Group

Will you add inventory in 2024? Can you tell us about your plans?

Jeff Benach: We hope to launch at least three different town home communities in 2024 — one in Morton Grove, one in Northbrook and one in Chicago’s Bridgeport neighborhood. In total, these developments would bring an additional 240 units to the market.

Liz Brooks: As always, we continue to look for new development opportunities in the city. However, we can’t ignore the struggles the Chicago housing continues to face, including the never-ending increases to property taxes and the potential for increases in real estate transfer taxes. Additionally, burdensome regulations make it challenging for developers to introduce new homes into the market, especially for first-time and move-up buyers. And last, the impact of geopolitical uncertainty will weigh on our market and others into the new year.

These combined factors make it tricky to make predictions for 2024, but when we remember many of these same challenges were already present in 2023, we can reflect on the bright spots in the market and have hope the upcoming year could be better than some think. For example, sales momentum at Triangle Square, our development in East Bucktown, has been strong over the course of the year in spite of the higher mortgage-rate environment that has impacted buyers.

Will agents be more important to your plans in 2024? If so, how?

Benach: Working with agents will continue to be an important component of our marketing efforts. We have a 2.5% co-op, and we engage in proactive continual outreach to the broker community.

Brooks: Chicago is fortunate to have one of the most ethical, highly trained and hardworking brokerage communities in the country, and Belgravia Group has always valued its relationship with them. Now more than ever, homebuyers need professional and knowledgeable expertise to guide them through this complicated market. Brokers provide insights into specific neighborhoods and homes, and they also guide buyers through the mortgage process, inspections, homeowner walks and closings. We consider Realtors an incredibly important resource for homebuyers navigating this complicated market.

Which type of new-construction housing (condo, town home, single-family) do you expect to be most in demand in 2024?

Benach: Higher interest rates and affordability will continue to bolster demand for town homes, in our opinion.

Will the housing inventory shortage drive more development in 2024 and beyond?

Benach: I think it’ll stay roughly the same, as higher interest rates will continue to keep people who now own their homes out of the market, as they don’t want to give up their 2% or 3% mortgage rate to take on an interest rate of 7% or higher.