The Chicago Association of REALTORS® 2026 Market Outlook event on Jan. 12 showcased data that points to a measurable market shift: Sales are projected to rise, business investment in Chicago remains strong, and early indicators suggest renewed activity in the first quarter.
In real estate, confidence doesn’t come from optimism alone; it comes from credible signals of demand, stability and opportunity. This year, those signals are emerging. Put together, they point to a Chicago real estate market defined by growing confidence and momentum. For both Realtors and consumers, it’s time to act.
Major signs of growing buyer interest
Residential mortgage applications offer an early glimpse into the future health and direction of our real estate market. Mortgage rates, which have fallen to 5.99% compared to 7% at this time last year, have driven this increase in applications, indicating that serious buyer interest will set the stage for increased sales as we move into 2026.
Speaking at the event, National Association of REALTORS® Chief Economist Lawrence Yun said he anticipates a 14% increase in sales growth nationwide this year. This forecast follows three years of historically low sales activity and is a hopeful sign of recovery, as we ended 2025 with just a 0.5% increase in sales in the Chicagoland area.
Commercial real estate rewards expertise and timing
On the commercial side, Adrian Brizuela, associate director of market analytics at CoStar, reported that across multifamily, industrial and retail, the story in Chicago is the same: disciplined supply, localized demand drivers and a market that rewards expertise and on-the-ground knowledge.
Notably, small-format retail is emerging as a bright spot, driven by neighborhood demand and adaptive reuse across the city. While many U.S. markets are still working through excess supply, Chicago’s multifamily market is tightening — with vacancy falling and rent growth continuing to outpace the national average.
Chicago — the safe bet
Beyond the housing market itself, the city of Chicago continues to demonstrate economic strength. According to Phil Clement, president and CEO of World Business Chicago, the city consistently ranks as the No. 1 destination for corporate relocations and expansion.
From its geographic location to cultural vibrancy and strong workforce pipeline, the city offers clear advantages to businesses, Clement said. Those enterprises bring people with them, driving population growth, housing demand and activity across the metro area.
Even a lighter moment underscored the broader theme of renewed confidence. Yun joked that the Bears’ successful season could have ripple effects on housing decisions, reminding longtime Chicago residents what they love about the city, even its winters.
Meet curiosity with information and readiness
So, what does all this mean for you? In a market shaped by constant change, staying informed is not optional. Our clients rely on us to understand what is happening, what it means and how it impacts their decisions. And our association is here to support that work.
Chicago REALTORS® members have access to FastStats, which compiles weekly and monthly market statistics by neighborhood and the city as a whole. Pull the reports, get comfortable with the data and determine how it can be most useful for you, because without contextualization and communication, data only goes so far.
Take a look at your processes and figure out where data can be meaningfully integrated throughout the transaction. For example, use it to craft a tailored listing presentation, support pricing strategies, reinforce your value to clients or share insights through social media and newsletters.
You are the most valuable resource your clients have, and one of the most effective ways to demonstrate that value is through informed, confident guidance. In a year that’s expected to be defined by renewed momentum and opportunity, those who lead with knowledge will shape the market that lies ahead. Now is the time to lead and to act.
Lutalo McGee is president of the Chicago Association of REALTORS®.