Comparing Real Estate Markets: Logan Square vs. Humboldt Park

The last few decades have been very kind to the northwest side of Chicago. Not only have formerly dangerous neighborhoods become incrementally safer, but urban renewal projects have been concentrated in this large swath of the city. The much-heralded 606 Trail (officially The Bloomingdale Trail) opened in 2015, sending developers flocking to the area and making current residents nervous about the future of their neighborhood's affordability. The Blue Line, which runs through Logan Square, recently completed a multi-year improvement project. Humboldt Park's long-dormant beach reopened this summer at the behest of community organizers.

As demand grows in those neighborhoods, so does the cost of living. Younger generations are moving in droves and bringing with them a creative energy that often gives these less expensive neighborhoods an edgier and cooler reputation. After the younger crowds settle in, then come the restaurants, cocktail bars, and locally owned stores that make them want to stay - people can now live for less and still have the amenities of a metropolis.

But - as Brooklyn in the 1990s and the entire city of San Francisco can attest - this affordability doesn't last long. Scarcity of homes, combined with high demand, creates an unstable housing market in which home values (and property taxes) rise faster than one can say "kale dog treats."

On Chicago's northwest side, these changes are happening in Logan Square and Humboldt Park, adjacent neighborhoods that, ten years ago, were better known for their crime rates than their condominium options.

The real estate trends in both neighborhoods are incredibly similar, the one key difference is Logan Square is further along in the process. To describe the housing market in Logan Square as booming would be an understatement. Between 2013 and 2016, the average home price has increased from $245,000 to $359,000, peaking in March 2016 with homes selling for an average of $430,000.

As Chicago residents have historically moved westward from more expensive neighborhoods, medium home cost in both neighborhoods remains higher on the east sides near the bustling Milwaukee Avenue and the Blue Line train. Within the last year though, another amenity was added that has had a massive impact on the prices of homes in Humboldt Park: the 606, or the Bloomingdale Trail.

The city of Chicago spent years trying to figure out what to do with the elevated train tracks on the now abandoned Bloomingdale Line. After years of abandonment, the 606 was finally completed, giving the city an urban walkway and green space. The trail does border Logan Square as well as Humboldt Park, but people have been moving to Logan Square for years now, meaning the average house price was already increasing.

In Humboldt Park, the median home price increased from $239,000 in 2013 to $315,000 at the time of this writing. In the last year alone (when the the 606 opened), the price of a single-family home went up 62%. And the price of a condo? A staggering 184%. In fact, Humboldt Park saw the biggest median home price increase across the entire city of Chicago in 2015, according to the Chicago Tribune.

The distinct theme among many of the homes bought and sold in Humboldt Park in the last year is that many were newly built or rehabbed. While the 606 was under construction, many developers bought homes adjacent to or near the trail, rehabbing them and selling them at a higher rate. For now, Humboldt Park real estate growth will stem directly from the 606 and access to Milwaukee Avenue and the Blue Line. Though, much like in Logan Square now and Wicker Park before it, those price hikes will slowly move outwards and reach the center of the neighborhood. For now, new construction homes a stone's throw away from the 606 ask for upwards of $900,000.

While Logan Square's real estate might be slightly more mature than Humboldt's booming sales, it's still seeing major price increases along with a number of new developments. Other north side neighborhoods like Lincoln Park and Lakeview are favorite destinations for people looking to get out of the Loop, but they are largely developed markets. New single-family houses and condos are built at a much slower rate than in Logan Square since there is less space to build on or renovate.

It's very likely that Humboldt Park will quickly follow in the footsteps of Logan Square and Wicker Park. It might take several years, but eventually you will see similar luxury homes being built on every corner. For now, Humboldt remains a great option for those looking for inexpensive housing in a booming neighborhood.