Straight Up Chicago Investor Episode 427: 2026 Chicago Real Estate Forecast: Trends, Risks, and Opportunities with Jake Fugman and Mike Scanlon
Jan 22, 2026
Mike Scanlon, Chicago broker/investor with tax and finance expertise. Jake Fugman, Chicago broker/investor focused on multifamily deals and market strategy. They reflect on 2025 office and downtown trends, debate mortgage reforms like portable or long‑term products, unpack Chicago ADU expansion challenges, and assess interest rate drivers and brokerage platform shifts for 2026.
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Loop Sales Increased Modestly In 2025
- Downtown (the Loop) saw modest growth: sales rose 5.38% and prices increased ~2.2% in 2025.
- Activity suggests renewed demand in parts of downtown and nearby neighborhoods, though outer suburbs still draw buyers (Mike Scanlon data).
Watch For Policy Fixes To Unlock Inventory
- Expect policy or product moves to improve affordability like portable mortgages, 40–50 year amortizations, or expanded assumable conventional loans.
- These would ease seller lock-in on low rates but often require large down payments or blended financing (Mike Scanlon prediction).
Citywide ADU Expansion Will Be Slow To Move Rents
- Chicago expands ADU pilot to nearly the whole city on April 1, 2026 excluding downtown, doubling eligible parcels.
- Early results show only ~400 ADUs since 2021 and complex rules (owner-occupancy, apprentice-contractor requirements) limit short-term rent relief.