If you’re searching for properties in Chicago, you might be stuck in this common dilemma for homebuyers.
Should you find a property with more space but farther from the city or choose a smaller home in a more central Chicago location?
After 10 years of helping buyers work through this decision, we’ve learned that making the right choice depends on understanding each option’s trade-offs and opportunities. We’re the Ben Lalez Team, and if this sounds like you, we’re here to help you figure this out.
Understanding Your Options
For example, moving to Bucktown offers a distinctive lifestyle because the area has attracted young professionals and families who enjoy the local coffee shops, restaurants, and having The 606 Trail within walking distance.
If you’re considering Wicker Park, you’ll find a more vibrant scene. The neighborhood has developed into one of Chicago’s most dynamic areas, with a great mix of boutique shopping, dining options, and entertainment. Homes in Wicker Park will provide less space than living in the suburbs, but residents love the convenience of local amenities. You’ll find this reflected in the higher price per square foot and more buyer competition when properties become available.
Lets take a look at one more neighborhood, and that’s Lake View. This area appeals to buyers who want lake access and an active lifestyle. The neighborhood offers good transit options, lots of shopping and dining, and most importantly, those gorgeous lake views. From vintage walk-up homes to modern condos, Lake View offers ways to balance space and location convenience.
Understanding Your Finances
In case you haven’t checked out our previous article on Chicago Homebuyer Programs That Save You Thousands, give it a read. Many buyers don’t know that Chicago offers several programs that can help your financial burden when buying a new home.
The City Of Chicago Home Buyer Assistance Program provides up to 7% of the loan amount for down payment and closing costs. In Cook County, you may qualify for up to $25,000 (or 5% of the purchase price) through their Down Payment Assistance Program.
These funds can be applied to your down payment, closing costs, or mortgage buy downs. These programs can make the difference between choosing a larger home in an emerging neighborhood or a smaller space in an established area.
Another consideration is that ongoing costs vary significantly between city and suburban living. City properties often mean higher taxes but lower transportation costs, while suburban homes might have lower taxes but require budgeting for commuting expenses and higher maintenance responsibilities.
Understanding Property Types
One thing we love about real estate in Chicago is the housing market offers a variety of options that address space and location. Condos can often be found in prime locations and are at lower price points than houses, with building amenities that complement your lifestyle.
If you’re considering buying a Chicago condo, make sure to understand the financial health, condo by-laws, HOA fees, and available storage. We recommend paying close attention to soundproofing quality because it can significantly impact your daily comfort.
In the suburbs, it’s more common to find single-family homes in outer neighbourhoods, and they’re appealing because they offer maximum privacy and flexibility with space. Unlike living under a condo corporation’s rules and policies, owning your own house means you’ll have full control over maintenance and improvements. You’ll also have outdoor space, even if that comes with the responsibility of maintaining your property.
Historic Chicago bungalows offer an interesting middle ground. They are found in many established neighborhoods and offer character with practical layouts. They usually include basements for extra space, which is a big benefit. We find these bungalows more affordable than new construction and offer excellent potential for adding improvements that can increase the property value.
Understanding Smart Location Strategies
We know that prime locations like Lincoln Park and Wicker Park get lots of attention, but it’s possible to find great value by looking just beyond these hot spots. Areas that are next to popular neighborhoods frequently offer similar amenities and accessibility at better price points.
For example, Lake View commands premium prices, but nearby areas might offer comparable transit access and amenities with more space for your money.
When exploring potential locations, look past current amenities and find future potential. If there are development plans for new transit stations, commercial developments, or neighborhood improvements, these can significantly impact property values in the future. Research local development plans and community initiatives to understand where an area might be heading, or better yet, just ask us!
Understanding Trade-Offs
How you will be commuting to work will play a big part in your decision, because your commute impacts more than your schedule – it affects your daily quality of life and budget.
A Bucktown property might cost more per square foot than one in the suburbs, but it’s essential to consider transportation savings. This could mean reduced gas costs, lower vehicle maintenance or depreciation, and potentially even eliminate the need for a second car.
More important, consider the value of your time. An extra hour of commuting each day adds up to about 250 hours per year.
If you work 8 hours a day, 5 days a week, this equals more than six work weeks you’ll save!
Public transit access varies significantly by neighborhood. Some areas have multiple transit options, while others rely more heavily on buses or require longer walks to train stations. When evaluating locations, remember to consider both your daily commute and your weekend transportation needs.
Understanding Community Impact
School quality often drives property values, even if you don’t have children. This means you’ll want to research Chicago school districts and their performance trends. When it comes time to sell, your property will be much more attractive to buyers.
Parks and green spaces also contribute to quality of life and property values. The lakefront area provides incredible recreational opportunities but don’t overlook neighborhood parks and trails. The 606 Trail, for example, has dramatically improved property values in nearby areas.
Understanding Seasonal Living Considerations
We talk about this a lot, but Chicago winters demand special consideration when buying a property. Homes with attached garages are incredibly convenient in the winter during snowy months. From December to April, city parking restrictions affect street parking, making dedicated parking spots even more important. If you’re considering living in a condo, you don’t have to worry about snow removal or street parking, which saves you a ton of stress.
In the summer, Chicago comes alive. Neighborhoods near the lakefront become hot spots with beaches, festivals, and outdoor dining. You’ll want to consider how your home’s location lets you take advantage of Chicago’s warmer months. Outdoor space becomes sought-after during the summer, whether it’s a private balcony, shared rooftop, or cozy backyard.
Understanding How To Future-Proof Your Property
We recommend thinking beyond your current needs when choosing between space and location. In our experience, buyers find their space needs changing significantly within a few years. This could be due to working remotely, family changes, or lifestyle shifts. Consider properties with flexible spaces that can adapt to changing needs.
Look for neighborhoods showing signs of positive development. This means new businesses opening, infrastructure improvements, or upcoming community investments. These are all good signs, and can signal improving property values and quality of life.
Wrapping This Up
Before making your final decision, ask yourself these questions:
- How do you really spend your time? Be honest about your daily routine.
- What’s your tolerance for commuting versus your desire for more space?
- Do you need dedicated space for a home office?
- Are you planning any family changes in the next few years?
- What’s your parking situation, and how important is it to your daily life?
- Do you have time to maintain a property with your work schedule?
- Do you prefer spending more time at home, or do you need to be out experiencing the city?
- How important is storage space to you based on your belongings?
Your ideal Chicago home will be a balance of THREE important elements:
- Space
- Location
- Budget
Want to explore your options? Contact our team and let’s discuss your priorities and review current opportunities in neighborhoods that match your needs. We’re happy to share our unique insights and years of Chicago real estate expertise to help you make the best choice for you!
