Very few neighborhoods illustrate how Chicago can go from cheap, rundown buildings, to an affluent area within a block or two like the Hyde Park Neighborhood. Hyde Park is surrounded by Washington Park and Woodlawn, two areas known for gang violence and Section 8 housing. However, Hyde Park is anchored by one of the world's leading universities, the University of Chicago. For real estate investors, the area has had a remarkable journey over the last 20 years, even with the university. Home prices and the neighborhood were still kept down by the areas around it, with the explosion of Bronzeville to the north and Woodlawn to the south. Hyde Park home and rental prices have surged. But let's dig deeper into this South Side gem that is in high demand, with easy access to the beach and Lake Michigan, wonderful museums, and world-class education. This neighborhood also boasts some of the best walkable shopping and parks on the south side of Chicago.
Rent Grade
Hyde Park is an A-class area for rental, which means you can find tenants who are affluent with good to great credit. The area is anchored by a student population with student loans or parents covering rent. A-class is low risk, low reward investing. This is the steadiest you can find in real estate, meaning cash flow is low, but appreciation tends to be on the higher side. The rent prices are higher than those in the surrounding areas, but the ratio between rent and purchase price is also low. This is more of a long-term play than a cash flow play.
Flip Grade
Ten years ago this area was very flip worthy, however the prices for properties that need work has caught up to true value, and thus the value of doing flips is not as high. With that being said, if you find a gem at a good price it is a very easy area to find a buyer for a property that has been flipped. I grade this a C+ area for flippers.
Where to Eat
If you're shopping for investments in Hyde Park and get hungry, make sure to check out Medici on 57th or 5 Rabanitos Hyde Park. Both offer fair-priced, casual, sit-down food.
Average Price
Home values for condos in Hyde Park run between $200 and $350k, but you can find smaller homes for cheaper and bigger for much more, and single-family homes run between $600k and $1.5 million. Generally speaking, the rental market is stronger for condos than for single-family homes.
Rent Prices
Average rent prices are between $1,500.00 and $3,000.00, the closer to the school or beach the more you can get for rent.
Looking to buy a property in the Chicago neighborhood as an investment? Before you do, talk to a premier Chicago property management company and make sure you are prepared. Set up a time to chat here.
Need to know more about investing on the southside? Read all about it here. And if you’re new to Chicago, don't fall for the security deposit traps.
