The top five “hottest” Chicago neighborhoods of 2017 are on the city's South and West Sides, according to analytics released by Seattle-based real estate firm Zillow.
The announcement comes as part of the company’s predictions for 2017’s 10 “hottest housing markets,” a list topped by Nashville.
“To determine which markets would heat up over the next 12 months, Zillow looked for places with quickly rising home values, low unemployment rates and strong income growth,” a spokesperson for Zillow said in a release.
“Provo, Utah -- one of three Utah markets on the list -- has the lowest unemployment rate of the 10 hottest markets at 2.7 percent. Home values in all three Utah markets are expected to appreciate more than 4 percent in 2017.”
[NATL-CHI] Lincoln Park Mansion Listed for Record $50 Million
Chicago’s top neighborhoods, according to Zillow, are:
1. South Deering – with 7 percent forecasted home value growth
Local
2. Hermosa – with 6.4 percent forecasted home value growth
3. Chicago Lawn – with 6 percent forecasted home value growth
4. Near West Side – with 5.73 percent forecasted home value growth
5. Marquette Park – with 5.72 percent forecasted home value growth
[NATL-CHI] Photos Show Inside Creepy Abandoned Edgewater Hospital
“Three variables influenced Zillow’s hot market predictions: Zillow’s Home Value Forecast, which forecasts the change in the Zillow Home Value Index over the next 12 months, recent income growth, and current unemployment rates,” the release reads. “Those three variables were then scaled for the 100 largest U.S. metros and combined to form a ‘hotness score,’ producing the top ten list.”
Svenja Gudell, the chief economist at Zillow, said crime was not taken into consideration when evaluating neighborhoods—but that it could be indicative of current home values.
“If there’s a neighborhood that’s either expected to increase in crime or decrease in crime, that I would think would have significant impact on the neighborhood’s home value,” Gudell said in an interview.
Income and unemployment rate analysis were determined using Moody’s Analytics from Census Bureau and Bureau of Labor Statistics, Zillow said. Gudell said Zillow also factored in other influences like supply and demand and mortgage rates.
Gudell also said neighborhoods like those named the “hottest” of 2017 in Chicago might be catching up in the recovery after the housing crisis.
“These neighborhoods just have more home value growth to make up,” she said.
