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Hyde Park Real Estate – Condo Analysis – 3rd Quarter 2015
Hyde Park Real Estate – Rental Analysis – 3rd Quarter 2015
Let’s take a quick look at real estate values in Hyde Park Chicago.
Selling prices are up for studios, one bedroom, and two bedroom condos.
Studios are up a whopping 26 %. One bedroom condos are up 7% and
2 bedroom condos are up a healthy 4% year over year.
However, it looks like the larger units took a hit for some reason.
Condos with 3 or more bedrooms are down 16% year over year.
If you are thinking about buying a 3 or 4 bedroom condo in Hyde Park,
now might be a good time since the average selling prices have dipped.
Now let’s take a look at the Hyde Park rental market.
The Hyde Park rental market is in high demand.
The neighborhood has great amenities including restaurants, shopping,
and parks. When demand is high and supply is low, prices will increase.
As I just demonstrated, I have always been skilled at stating the obvious. 
Studios rents are up 20%. Two bedroom units are up 6%.
4 bedroom units are up a whopping 30% year over year.
But, one bedroom and 3 bedroom rentals remained unchanged.
So what does this all mean? In a nutshell, Hyde Park condos are in demand.
But, some bedroom counts are doing better than others. After looking at this
data, one thing stood out to me: the relationship between studios and one bedrooms.
Studios are selling for 41% less than a one bedroom unit.
But the rental income for a studio is only 23% less than a one bedroom unit.
So your return on investment, or cap rate, is likely to be higher with a studio.
So instead of buying a one bedroom unit, you may want to consider purchasing
two studio units. Of course, your mileage may vary. Contact me for more information.
Until the next time,
Mark Killion
Kale Realty
542 W. Roosevelt Rd
Chicago, IL 60607
Visit me online: www.773property.com
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