Lakeview’s transformation into a residential hotspot began in the 1850s when the area served as an escape from Chicago’s cholera epidemic. The catalyst was the Hotel Lake View, built in 1853, which offered stunning lake views that attracted wealthy Chicagoans seeking summer retreats.
The real estate boom truly exploded in 1889, when an astounding 43% of Lakeview East’s present-day buildings were constructed. The neighborhood’s character was further shaped by the arrival of industry in the 1880s, transforming it from a celery farming region into an urban residential district.
Current Market Analysis
Today’s Lakeview real estate market shows remarkable strength and resilience:
Market Values:
- Median sale price: $465,000 (up 3.8% from last year)
- Median price per square foot: $308
- Average rental price: $3,216 (higher than 88.7% of Illinois neighborhoods)
Property Types and Performance:
- Small apartments (studio to two-bedroom) dominate the market, making up the majority of residential properties
- Most buildings are either small 2-4 unit apartments or high-rises
- Properties typically sell within 48 days of listing, as per Redfin
Investment Analysis
The neighborhood shows strong investment potential.
Best Performing Segments:
- Smaller condos (studio to two-bedroom) show the highest demand, particularly appealing to young professionals and smaller households
- Multi-unit buildings (2-4 units) represent 44.7% of the real estate, significantly higher than most U.S. neighborhoods
Market Dynamics:
- Vacancy rate is only 4.4%, lower than 70.9% of American neighborhoods
- Hot properties can sell for about 3% above list price in around 34 days
Why Lakeview Thrives
Several factors contribute to Lakeview’s strong real estate performance:
Location and Transportation
- 34.1% of residents commute by train
- Extremely walkable neighborhood with high population density (32,798 persons per square mile)
Demographics
- High concentration of young professionals (73.6% in executive, management, or professional roles)
- Strong LGBTQ+ presence (3.3% same-sex households, among the highest in America)
Market Stability
- Recent data shows a 33.1% decrease in new listings and 38.1% fall in inventory, creating a seller’s market
- Median sales price for detached single-family homes increased by 27.2% to $1,590,000
The combination of historic charm, prime location, and strong demographic fundamentals continues to make Lakeview one of Chicago’s most desirable real estate markets, particularly for smaller units catering to young professionals and urban sophisticates.