2026 real estate development predictions

by Chicago Agent

December 01, 2025

Featuring the perspectives of:

Jeff Benach
Principal, Lexington Homes

Azeem Khan
President and Founder, AK Custom Homes

David Wolf
CEO, Wolf Development Strategies, Wolf Residential

How do you see home design, floor plans, and community amenities evolving to meet buyer expectations in 2026?

Jeff Benach: With affordability continuing to be a challenge for production builders, there will be a greater focus on floor plans that use space more efficiently, including designing for dual uses so a room can be used for more than just a “flex room.” Perhaps the space can be used as a guest bedroom and a home office, for example. Affordability is also a reason we’re continuing to see a higher percentage of families that would normally gravitate toward single-family homes choose townhomes. The recent drop in interest rates will reverse that a bit, but likely not by that much. I predict kitchens and great rooms will continue to take up more of the footprint of the home, meaning houses may be getting slightly smaller but kitchens and great rooms are getting bigger.

Azeem Khan: In 2026, we expect home design to continue trending toward natural elements, mixed metals and clean, timeless aesthetics. In the high-end luxury market, custom design will remain a key differentiator — whether that’s through distinctive brickwork, exterior limestone facades or bespoke interior finishes that reflect each buyer’s lifestyle.

From a floorplan standpoint, we don’t anticipate dramatic changes due to vertical build constraints tied to typical lot sizes, which are often around 25 feet wide. However, as we continue to secure larger lots, we’re able to introduce more flexible and open layouts that better suit modern family living.

David Wolf: In 2026, Chicago condo buyers will continue prioritizing homes that balance efficiency with comfort. We’re seeing strong demand for floor plans that “live bigger” through thoughtful use of space – flex rooms that transition from office to guest room, better-organized storage and layouts that create natural separation between work, rest and entertaining. Buyers want homes that support daily routines without feeling confined.

How do you envision the builder-Realtor partnership evolving in 2026, especially when it comes to marketing and selling new homes?

Benach: At the end of the day, homebuilders rely on Realtors for one basic function: traffic generation and bringing as many qualified buyers through the door as possible. The new buyer-broker commission changes have affected resale more than new-home builder transactions, but that will likely continue to evolve. The commission changes also influenced how builder incentives and concessions are marketed and structured, and this will continue to evolve.

Khan: I think it’s very important to have a developer hire a listing broker to sell their property. A listing broker can always market the home on the top agent network, social media, along with the MLS and many other outlets. Additionally, they are all built to offer marketing material, including videos, pictures and other marketing options that developers just don’t have the time to be able to do. I think that the builder and developer relationship will remain the same as it has in the past. Many developers have been working with the same brokers for many years now, so it’s more of a trust and confidence factor built over many years of experience.

Wolf: In 2026, the partnership between developers and condo-focused sales teams becomes even more collaborative and data-driven. Builders are looking for real-time insights – how buyers are responding to floor plans, pricing, finishes and amenity packages – and they want that feedback early so they can make informed decisions before cost-heavy stages of development.

For developers, partnering with an experienced sales and marketing team means stronger storytelling, faster absorption and a more seamless buyer experience. For buyers, it means clearer information and less uncertainty throughout the new-construction process.

Do you plan to add inventory this year?

Benach: Lexington Homes will debut two new-home developments in 2026, in Northbrook and Roselle.

Khan: Yes, we are offering the biggest home we have ever developed.

Wolf: Developers want to bring more condo inventory to Chicago, but the path remains challenging. Elevated construction costs, tight financing and a layered regulatory environment make it difficult for projects to pencil – especially for for-sale, multi-unit buildings. Even when demand is strong, feasibility often becomes the limiting factor.

We expect to see selective, well-positioned projects move ahead – mainly boutique and mid-size buildings where pricing, location and design align. In a market this complex, thoughtful execution and strong sales strategy are essential to bringing new condo inventory to life.