While the Chicago real estate market is strong, the overall state of the economy for Illinois is weak.  But that could soon be changing as the Illinois Government has approved legislation to allow for natural gas production in the state.  Chicago could soon be the new Dallas, which will be even more positive for real estate in the area.

 According to a Chicago Tribune article by Julie Wernau, Illinois has substantial natural gas potential in the southern part of the state.  Improved drilling technology known as "fracking" has greatly increased American natural gas production, and the level of wealth in the states that have the resources, too.  Fracking is, "a method releasing oil and natural that involves massive amounts of pressurized water, sand and chemicals."

Illinois is in bad shape, financially.  

One of the few bright spots for the state is the booming real estate market in the Chicago area.  Those selling now are attracting multiple offers, with bidding wars resulting.  New natural gas production will bring in huge amounts of tax dollars, Wernau notes.  In her article, "Fracking Legislation Passes in Springfield," she writes that each well drilled will bring in $725,000 in taxes that are desperately needed over the next ten years for Illinois.

Chicago real estate will benefit from this, as the real estate market in Dallas does from the great oil wealth of the state of Texas.  Even though it is not the capital, Chicago is the business, commercial, and cultural center of the state of Illinois.  In this regard, Chicago serves in that capacity for the United States, sitting midway between New York City and Los Angeles as the third largest urban area in the country.

With new natural gas wealth, investments will flow into Chicago real estate.  There will also be a growing demand for office space in Chicago as more busineses will operate from the city.  Mayor Rahm Emanuel, as detailed in a recent front page article in Time magazine, has been very successful at luring companiesto to relocate to Chicago already.  Greater natural gas wealth in the state will only make Chicago real estate more enticing.

For those looking to profit from the natural gas boom in Illinois without actually drilling, there are a variety of ways to prosper through investing in Chicago real estate.  Those who bought real estate in Dallas, Houston, Austin, and other cities in Texas have certainly done well as a result of the fossil fuel riches in The Lone Star State.  It is presently happening with the booming real estate market in North Dakota, as a result of the massive natural gas production in that state.  Hedge funds and other institutional investors have plowed huge amounts of money into North Dakota real estate due to the profit potential.

In the Chicago real estate market, there should be gains ahead to be made through passive, long term investing in private mortgage notes, small apartment buildings, and turnkey properties.  Institutional and foreign investors are very active in Chicago, too.  The real estate market  in the Chicago area is already strong and greater natural gas production in Illionios will serve to fuel it even more.