Zillow Announces ‘Hottest' Chicago Neighborhoods of 2017
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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.”
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Richard and Michaela Parrillo are selling their 25,000-square-foot, seven-bedroom mansion for a record asking price of $50 million.
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The couple built the North Burling Street home less than 10 years ago.
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The property spans 8.5 city lots.
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They decided to sell it because they are spending more time in Florida, where they have another home, according to one of the property's listing agents, Matt Leutheser, with Jameson Sothesby's International Realty.
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"They're basically downsizing," Leutheser said.
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It cost $65 million for the couple to build the mansion, including the $12.5 million it cost to purchase the land.
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Leutheser said the property sits on one of Chicago's "most premiere blocks."
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Still, they are asking for $15 million less due to the state of the current market.
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"We'd prefer them not to get hit but the market is what it is," Leutheser said.
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Leutheser said the couple spent five years building the home.
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They moved into the property in 2010.
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"This is something that they spent a lot of time and effort constructing," Leutheser said. "There's nothing else like it."
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"The build was a labor of love for them," Leutheser said.
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The asking price is well above what any Chicago-area home has ever sold for.
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The highest price a Chicago-area home has sold for was $19.5 million, when Groupon founder Eric Lefkofsky purchased a manion in Glencoe in 2014, according to the Chicago Tribune.
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Meanwhile, the highest priced-sale in Chicago sits at $18.75 million in 2015 for a 65th-floor penthouse condo unit in the Park Tower.
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Leutheser said the couple hopes that whoever purchases the home appreciates the work they put into it.
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"The buyer pool is going to be fairly small," Leutheser said. "This isn't something that everyone can afford to do."
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The $50 million home features a curving staircase with black and gold wrought iron railing.
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It also features wood-trimmed, arched passageways.
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It also features wood-trimmed, arched passageways.
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Unique ceiling details are featured throughout the home.
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Unique ceiling details are featured throughout the home.
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Marble flooring covers the home, with some areas featuring unique designs.
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"It's really irreplaceable," Leutheser said.
Chicago’s top neighborhoods, according to Zillow, are:
1. South Deering – with 7 percent forecasted home value growth
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
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“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.
