Exploring Real Estate Investment Opportunities in Calumet Heights

The city of Chicago comprises 77 distinct neighborhoods. Each has its own unique character that appeals to different types of real estate investors. The neighborhood of Calumet Heights is one of those neighborhoods, but is it the right neighborhood for you as an investor?Chicago real estate investing

The Neighborhood

As an investor, you want an attractive neighborhood surrounding your property. No one wants to live in a neighborhood riddled by crime, vacant buildings and a depressed local economy.

In Calumet Heights, the pace is noticeably slower than many surrounding neighborhoods. Homes were primarily built in the 1940s and 50s. The predominant style is the standard two-story bungalow style.

Calumet Heights is a working class neighborhood, but it is a primarily white-collar, working class neighborhood.  Of the 17,147 working people within Calumet Heights, 79 percent work in professional, white-collar positions. The median household income is $49,744 compared to $38,625 in greater Chicago and $44,512 across the United States. The median age of Calumet Heights' residents is 40 years old, and 31 percent of families have children less than 18 years of age.

If you as an investor are looking for middle to upper-middle class, established neighborhood with low crime and a positive economic outlook, Calumet Heights is that type of neighborhood.

The Price

Of course, simply buying in a nice, safe neighborhood is not good enough. As an investor, you look for undervalued properties or properties that are at a point where a significant increase in value is likely.

In Calumet Heights, property values fell steadily up until last year. In Q4 of 2012, the median sale price of a single-family home in Calumet Heights was $69,000. In Q1 of 2013, the median sale price had increased by 35.5 percent to $93,500. Such a significant jump can be misleading in such a small area with a small sample size. The year-over-year comparison indicates a 6.5 percent decrease in median price. Currently as of April 2013, the median sale price in Calumet Heights is 49.73% lower than the median sale price in Greater Chicago.

The Projection

When projecting what will happen in Calumet Heights over the next few years it is important to look at Greater Chicago. Much of the economic recovery in the area will take place in the white-collar, professional sectors rather than in manufacturing. The people that drive these industries will need a home, and the well-established neighborhood of Calumet Heights, with its excellent schools, lower-than-average crime rate and convenient access to public transportation, fits criteria for that type of individual.

Area Map Chicago real estate investing, calumet heightsAs an established neighborhood, Calumet Heights has not recovered as quickly as some other sections of Chicago. Throughout the Chicago area, the year-over-year gain, according to Trulia.com, is 16.7 percent from March of 2012 to March of 2013. Calumet Heights is expected to catch up and post moderate gains over the coming years like the rest of Chicago.

Overall, Calumet Heights is a quality investment neighborhood for the new real estate investor looking to enter the industry as well as the established investor looking to diversify with a few low risk, turnkey properties.

Currently, Equity Build Finance holds several properties within Calumet Heights and the surrounding areas. To review these properties and stay up to date on other offerings, please sign up for our mailing list or check our blog each week.

Information and statistics gathered from trulia.com, Zillow.com, CCIM and the US census. It is deemed reliable if not accurate.

by, Jonathan Williams: EquityBuild News Contributor

Information and statistics gathered from trulia.com, Zillow.com, CCIM and the US census. It is deemed reliable if not accurate.