The chicago suburbs real estate market is heading into 2027 with a mix of opportunity and constraint. Buyers still want space, top schools, and lifestyle-driven communities, while sellers remain selective about moving—especially if they’re holding older, lower-rate mortgages. National housing economists continue to point to affordability and limited inventory as the two forces most likely to shape the next 12–24 months.

Because our focus is limited to Hawthorn Woods, Long Grove, Kildeer, Lake Zurich, Mundelein, Wauconda, Libertyville, Buffalo Grove, Barrington, North Barrington, Lincolnshire, Round Lake, Round Lake Beach, Round Lake Heights, Grayslake, Mount Prospect, Volo, Spring Grove, Glenview, and Northbrook, this forecast is built around what typically drives demand and pricing in these specific north and northwest suburban corridors.

What Will Shape the 2027 Market Most?

Mortgage rates may stay “higher than pre-2022 normal,” even if they ease

Even small changes in mortgage rates can change buyer demand and monthly affordability. As of early 2026, rates were hovering a bit above 6%, and economists have suggested meaningful affordability improvement often requires a bigger rate drop than buyers hope for.
For 2027, the most realistic expectation is a market that responds quickly to rate dips and pauses when rates rise—creating short bursts of activity rather than a smooth, steady pace.

The lock-in effect is still limiting inventory

A major reason supply stays tight is that many homeowners don’t want to give up older mortgage rates. That “lock-in” dynamic continues to restrict resale inventory nationally, which supports prices in desirable suburban pockets.

In the chicago suburbs real estate market, this matters most in communities where homeowners tend to stay longer and where desirable inventory is already limited—like Long Grove, Kildeer, Hawthorn Woods, Barrington, and North Barrington.

Local forecasts still emphasize constrained supply and planning needs

Illinois real estate industry forecasting also highlights the need for longer-term planning in response to shifting economic and housing conditions.
While forecasts can’t predict neighborhood-by-neighborhood outcomes with precision, they reinforce the same theme buyers feel on the ground: desirable inventory doesn’t expand quickly.

2027 Forecast by Segment

Move-in-ready homes should remain the market leaders

If 2026 taught buyers anything, it’s that “turnkey” wins. In 2027, homes in Glenview, Northbrook, Libertyville, Lake Zurich, and Buffalo Grove that are updated, well-maintained, and priced correctly are likely to keep drawing the fastest activity. In many cases, the premium for move-in-ready will remain because buyers are more cautious about renovation costs and timeline risk.

Entry-to-mid price points may see the strongest competition

Areas like Mount Prospect, Mundelein, Wauconda, and parts of Grayslake and Round Lake often attract a broader pool of buyers. If rates ease even modestly, this segment can become the most competitive quickly because affordability brings more buyers back into the market.

This is where the chicago suburbs real estate market could feel “hot” again in short waves—especially during spring and early summer seasons.

The luxury tier stays active, but it rewards precision

The luxury segment is less sensitive to rates, but very sensitive to value, condition, and property-specific uniqueness. Homes with acreage, privacy, and standout outdoor living in Barrington, North Barrington, Long Grove, and Kildeer tend to perform best when they’re modernized and positioned correctly.

This is where luxury market trends in lake county matter most: buyers continue to pay for land, privacy, and lifestyle features, but they hesitate on homes that feel dated or overly personalized.

Community Outlook for 2027

Strong-stability leaders

• Glenview & Northbrook: Consistent demand driven by commuter access, established neighborhoods, and strong buyer confidence.

• Libertyville & Lincolnshire: Reliable long-term appeal, especially for buyers who want “community + convenience.”

• Lake Zurich: Continues to sit in a sweet spot for lifestyle value and strong neighborhood variety.

In these markets, the chicago suburbs real estate market forecast leans toward steady pricing, with the best homes selling efficiently and the rest requiring sharper pricing strategy.

Lifestyle-and-land driven luxury areas

• Hawthorn Woods, Long Grove, Kildeer: Buyers seeking privacy and larger lots keep these communities in demand.

• Barrington & North Barrington: Estate-style properties remain the category leaders for acreage and prestige.

In this tier, luxury market trends in lake county will likely continue favoring homes that offer privacy, updated interiors, and functional layouts for how people live now (home office, flexible space, indoor-outdoor entertaining).

Value-and-growth corridors to watch

• Grayslake, Round Lake, Round Lake Beach, Round Lake Heights, Volo, Spring Grove: These areas can see stronger year-over-year movement when buyers expand their search for affordability and space, especially if rates remain near current levels.

If inventory stays constrained in premium towns, demand can flow outward—supporting gradual appreciation in these growth-friendly markets.

Is 2027 a “Good Investment” Year?

Whether is real estate in chicago a good investment depends on the timeframe and the property type. For most buyers in these suburbs, the best investment outcomes usually come from:

• Buying a home that fits long-term needs (5+ years)

• Choosing a location with strong demand fundamentals

• Prioritizing condition, layout, and lot quality

• Avoiding overpaying for “trend” finishes that don’t add lasting value

In other words, is real estate in chicago a good investment is often a “yes” in these communities when the purchase is strategic and the holding period is realistic—especially in stable neighborhoods with limited inventory pressure.

What Buyers and Sellers Should Do Now for 2027

For buyers

• Watch rates, but don’t wait for a perfect number—shop the home and the neighborhood first.

• Compete hardest on homes that are updated and correctly priced; those are likely to stay in demand.

• In the luxury tier, prioritize land quality and privacy over sheer square footage.

For sellers

• Presentation and pricing will matter more than hype.

• In high-end areas, modern updates and clean staging can be the difference between “sits” and “sells.”

• If you’re testing a premium price, expect buyers to demand premium condition.

Conclusion

The 2027 outlook for the chicago suburbs real estate market is best described as stable with selective competition. Inventory constraints and affordability will remain the key story, while the most desirable homes—especially in Glenview, Northbrook, Libertyville, Lake Zurich, Long Grove, Kildeer, Hawthorn Woods, Barrington, and North Barrington—continue to attract serious, qualified buyers.

For homeowners tracking luxury market trends in lake county, the takeaway is clear: updated, privacy-driven properties should remain the strongest performers. And for anyone still asking is real estate in chicago a good investment, the 2027 answer will come down to buying (or selling) with strategy, not speculation.