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025 Real Estate Development Predictions

    Industry experts share their insights on the future of real estate development in 2025.

    Jeff Benach, Principal at Lexington Homes, plans a significant expansion with new townhome developments in Geneva, Northbrook, and Roselle, totaling 159 units. Jason R. Buchberg, Partner at Crescent Heights, emphasizes the need for "new" inventory to meet market demands, while David Wolf, CEO of Wolf Development Strategies, notes an increase in developers exploring new opportunities.

    Agents will play a crucial role in their plans, with Buchberg highlighting the importance of building relationships within the agent network and Wolf emphasizing engagement with the brokerage community. Benach confirms that Lexington Homes will continue to compensate agents fairly and nurture existing broker relationships.

    In terms of demand, Wolf predicts reasonably priced condo inventory will be in high demand in Chicago for the next couple years, while Benach attributes the popularity of townhomes to rising interest rates. Buchberg suggests a need for more affordable luxury condominium units in larger markets.

    To promote development in Chicago and Illinois, experts recommend changes such as raising the jumbo loan limit, reducing transfer taxes, streamlining zoning and entitlement processes, and implementing more straightforward affordable housing requirements.