Featuring the perspectives of:

Jeff Benach
Principal, Lexington Homes

Jason R. Buchberg
Partner, Crescent Heights

David Wolf
CEO, Wolf Development Strategies

Will you add inventory in 2025? Can you tell us about your plans?

Jeff Benach: We’re planning on a big year for 2025. If everything we have in the hopper comes to fruition as planned, we’ll be opening new townhome developments in Geneva, two communities in Northbrook and one in Roselle. In all, these developments will total 159 new units.

Jason R. Buchberg: Today’s markets are even more dynamic than ever before. Thus, it is harder to forecast when the next deal will actually pencil and make sense to the Investors. We believe “new” inventory is necessary for the market, and we are constantly evaluating opportunities that lend themselves to our business plan.

David Wolf: We have seen an increase in developers looking at new opportunities. The market dynamics are still such that most deals won’t pencil, but there’s movement in the right direction.

Will agents be important to your plans in 2025? If so, how?

Buchberg: Agents help to create and sustain the narrative that successful projects require. Being part of the fabric of the agent network is imperative to the launch and successful sellout of any project. It is our goal to get the agents and the market to believe in what we are doing.

Wolf: The brokerage community is a key element to the success of any new development. We always work to engage and embrace the brokerage community.

Benach: Agents will definitely be vital to Lexington in 2025, and we’ll compensate them in the same way as we always have. Nurturing existing broker relationships and building new ones with agents has always been important to us, and we should have more opportunities to do that next year with the number of projects we plan to open. In fact, we hosted a broker open house in early November at our newest townhome development, Metro on Main in Morton Grove. This community was 60% sold when models opened on Nov. 1, and it was great to see agents tour the community’s three decorated models. We hope to host additional broker events in 2025.

Which type of new-construction housing (condo, townhome, single-family) do you expect to be most in demand in 2025?

Wolf: Reasonably priced condo inventory will be the most in-demand product-type in Chicago for the next couple years.

Benach: We’ve seen an uptick in townhome popularity over the last couple of years, concurrent with the rise in interest rates. To date, all of our projects opening in 2025 are townhomes, although we’re working on a couple single-family home opportunities, as well.

Buchberg: For our business, this is a market-specific question. However, we believe amongst many of the larger MSAs, there is the need for more affordable luxury-type condominium units.

Which regulations should change to promote development in Chicago and Illinois?

Buchberg: Raising the jumbo loan limit, a transfer tax reduction, affordable housing requirements and transit bonuses.

Wolf: Making the zoning and entitlement process easier for developers in Chicago, raising the jumbo loan limit, a reduced transfer tax and more straightforward affordable housing requirements.

Check out this year’s other predictions below!