New construction has slowed dramatically in Chicago over the past 4 years, but it hasn’t stopped completely.
One area that remains reasonably active is the in-fill 3- to 6-flat condo. Developers have been capitalizing on reduced land prices to offer new units at prices that are very competitive with resales.
As you can see from the listing photos, the units at 1520 W Diversey Pkwy in Lake View are nearing completion. They’re slated for 30- to 60-day delivery.
A first-floor duplex-down 3-bedroom, 2 ½ bath is priced at $629,999. The 2-bedroom, 2-bath second and third floors are priced at $429,999 and $529,999, respectively. The third floor includes a private roof deck.
Koenig & Strey’s Roger Joseph has the listings, which just came on the market.
There are a number of similar units for sale along Diversey, making a trip in that direction productive for anyone looking in this general price range and location.
We are seeing that buyers are still willing to pay a $30-$50K premium for those middle floor units in infill three falts and up to a $100K premium at times for the top floor units with roofdecks when looking at new construction vs a 2000-2005 resales.
So, the fewer buyers out there pay more for new construction rather than much less for re-sales in the same location. This means re-sale units often times have to dip lower in asking price to bring out a different buyer into the market…those looking for a bargain first (home and lifestyle considerations second).
Joe,
My personal take is that the units you highlighted a few weeks back at 1951 W Belmont Ave, were a much better representation of the features, price point and location that today’s buyer is seeking. My thought is that we are at a point where (in most cases) a buyer has to be willing to pay a premium for new construction, verse what they can purchase on the resale market (lots of deals on nice units).
Looks like you’re not alone in your thinking, Dan.
It appears that 5 of the 6 units at 1951 W Belmont have gone to contract / contingent status.
Here’s a video I shot there in late March: