Illinois median home prices and home sales are expected to move higher in 2026, according to the 12-month housing market forecast from DePaul University’s Institute for Housing Studies (IHS). Statewide closed sales of single-family homes and condominiums are projected to increase about 1 percent compared to 2025, while median prices are expected to grow by approximately 3.4 percent.

“IHS’s 12-month forecast projects that Illinois home sales will increase by roughly 1 percent over the next year compared to the same period last year, while median sales prices are expected to rise by 3.4 percent compared to 2025. However, a substantial level of uncertainty continues to surround the housing market, making conditions in 2026 difficult to predict,” said Geoff Smith, Executive Director, Institute for Housing Studies at DePaul University in Chicago.

“The trajectory of federal interest rate policy remains unclear, inflation and broader economic volatility continue to weigh on consumer confidence, and housing affordability challenges persist for a wide range of potential homebuyers,” Smith said.

In the Chicago Metro Area, the outlook is stronger. The nine-county region is forecast to see a 5.1 percent increase in closed sales in 2026, with median prices rising nearly 5 percent yearover-year. While Chicago Metro Area’s 2025 sales remained slightly below 2023 levels, it showed steadier momentum, helping set up stronger projected gains in 2026.

The forecast follows a challenging 2025 marked by economic uncertainty, rising inflation concerns, and a federal government shutdown that delayed key data. Mortgage rates eased slightly but stayed above 6 percent, keeping affordability tight. While national inventory saw modest growth, Illinois inventory fell below 2024 levels. Despite those challenges, we anticipate a more stable market in the year ahead, supported by modest inventory growth and expectations of easing mortgage rates.

Find the 2026 Illinois housing forecast from the Institute for Housing Studies at DePaul University at www.IllinoisRealtors.org/marketstats.