Are Home Prices Rising or Falling in South Loop, Chicago?

South Loop, a neighborhood in Chicago, IL, is a cooling housing market. Here's what's happening and what buyers and sellers can expect.

The National Picture

Prices are still rising at the national level. The U.S. median home price hit $399,000 in the three months ending August 2026, up 2% year over year. But affordability has been easing: the typical American household earns around $88,000 and now devotes about 34% of income to housing, down from roughly 36% a year ago. Across the country, homes sit on the market for a median of 50 days, about 20% of listings have been reduced, and there are four months of supply.

Home Prices in the Chicago Area

The median sale price across the Chicago metro is about $394,000, and a typical metro-area household earns approximately $99,000. Roughly 35% of that income goes to housing, a figure barely changed from last year. Against that backdrop, most Chicago neighborhoods have posted price gains, making South Loop's decline an outlier.

Homes Are Getting More Affordable

South Loop is one of the few Chicago neighborhoods where prices have pulled back. The median sale price fell 3% from a year ago to $380,000, which could mean roughly $10,000 in savings compared to what buyers would have paid last year. About 14% of listings have had a price cut, and homes take a median of 60 days to sell. Still, more than half of sales — about 55% — closed above the asking price, and the typical sale landed at 102% of list. Nearby Downtown Evanston also saw minimal growth at 1%, while Uptown posted a 27% spike.

Why Are Prices Falling in South Loop?

South Loop's price decline comes at a time when the broader balance of supply and demand has shifted. Active listings dropped 11% from last year, and pending sales rose 12%, so buyer activity is actually increasing. With 2.5 months of supply and homes taking two months to sell, the market moves at a more measured pace than tighter North Side neighborhoods. The mix of homes selling here may also be weighing on the median, creating a potential opening for buyers looking at this price range.

Limited to neighborhoods with at least 10 home sales in the period.

All data comes from Redfin and represents a three-month rolling average ending August 2026. This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. Check the Redfin Data Center for additional in-depth housing market data.