For years, I would not have described Lakeshore East as a neighborhood with steady, reliable condo appreciation. That is the honest truth.
We were hit hard by the 2008 recession. We saw some recovery and good growth around 2013, then another stronger stretch in 2017 and 2018. Then 2020 happened. The pandemic changed the downtown condo market almost overnight. People left downtown, buyers paused, and a lot of buildings spent several years working through softer demand.
That is why this year feels different. For the first time in a long time, I am seeing real growth in the Lakeshore East and New Eastside condo market. Prices are finally starting to appreciate again, not because of hype, but because the math has changed for buyers, owners, renters, and investors.
Rising Rents Are Pushing Buyers Back Toward Ownership
Downtown rents have increased significantly, and renters are feeling it every time their lease renews. For years, it was often cheaper to rent downtown than to own. That gap has narrowed, and many renters are realizing they could own a condo, build equity, and have a more stable monthly housing cost for a similar payment.
Downtown Has Not Been Building Entry-Level Condos
Since the 2008 recession, downtown Chicago has not added meaningful entry-level condo inventory. New high-rises have largely been rental buildings or ultra-luxury condominiums like St. Regis, One Bennett Park, One Chicago, and No. 9 Walton, often with a $1 million-plus starting point.
What has not been built is the product many buyers actually need: a one-bedroom around $400,000 to $450,000, or a two-bedroom around $500,000 to $600,000. That missing middle has put more pressure on existing condo buildings in Lakeshore East and the New Eastside.
Low Mortgage Rates Are Keeping Owners in Place
During the pandemic, many owners refinanced into mortgage rates around 2.5% or 3%. If they sell, they have to give up that mortgage, buy at today's higher prices, and likely take on a loan closer to 6% or 6.5%. For many owners, the math simply does not make sense, so listings stay off the market.
Investors Are Holding, Too
As rents have risen, many investors are finally seeing the numbers work again. If the rent covers the mortgage, taxes, and assessments while the owner builds equity, there is much less motivation to sell. That removes even more inventory from the resale market.
Why This Matters for Lakeshore East
Lakeshore East has strong lifestyle fundamentals: the park, lakefront, Millennium Park, Maggie Daley Park, Mariano's, transit access, and a true neighborhood feel in the middle of downtown. Those things matter, but they did not automatically translate into consistent appreciation over the last 15 years.
What is different now is that supply and demand are finally working in favor of condo owners. Rents are pushing renters toward ownership. New entry-level condo inventory has not been built. Existing owners are locked into low mortgage rates. Investors are holding because rental income is stronger.
What This Means If You Own Here
If you own in Lakeshore East or the New Eastside, this does not mean every unit is suddenly worth dramatically more. Building, tier, view, condition, assessments, and pricing still matter. But it does mean the market has shifted in a real way.
If you are thinking about selling, this is the moment to understand your specific numbers: your building, your floor plan, your view, your upgrades, and your competition.
I live and work in this neighborhood. I know the buildings, the tiers, the assessments, and the buyer objections that come up in each one. If you want to know what your unit is worth in this changing market, I am happy to pull the data and talk it through.
Ginger Menne
Baird & Warner
(312) 927-0852 | [email protected]
www.neweastsideliving.com
