The past 10 years have seen a dramatic increase in the supply of condos in Chicago’s South Loop, the great majority of them in high-rise buildings. During the 1970s condo conversions exploded the supply of high-rise condos in Edgewater from nearly zero to more than 6,500.
Edgewater condos sold, on average, for $76,000 in 1979, prior to the market collapse of the early 1980s. During 1991 and the first 6 months of 1992 Edgewater condos sold for an average of just $56,570 according to a study I conducted at the time. Adjusted for inflation, the average Edgewater condo lost a staggering 60% of its value between 1979 and 1992.
Is the Edgewater example completely inapposite to the South Loop today? I’ll have the answer to that question for you about 10 years from now. If you have any insights on the topic, chime in here or join our Seeking solace in Chicago’s South Loop group at Facebook and start a discussion there.