Whether you’re chasing a high flipping ROI or rental yield, Illinois’ housing market is packed with opportunities waiting to be seized. In this article, we’ll explore the state’s top metros for real estate and what makes the state a great place to invest.

To make the most of Illinois real estate opportunities, partner with an Illinois hard money lender like ABL. Our local team has served real estate investors statewide since 2017, providing fast, flexible real estate funding and expert guidance along the way.

Illinois Housing Market Snapshot

Before diving into the top Illinois metros for real estate investors, let’s explore the state’s overall housing market.

In February 2025, Illinois home sales reached 7,698, up 0.1% from the same time last year. While this year-over-year home sales growth rate dropped from 8.6% in January 2025, it’s still positive and likely to remain positive.

Meanwhile, the median home sales price in Illinois was $283,000 in February 2025, up 6.0% since last year and about 31% lower than the national median listing price of $412,000. In other words, Illinois is relatively affordable and profitable.

Part of what’s driving Illinois housing prices up is a constrained home supply. In February 2025, there were 16,782 homes on the market statewide, down 0.6% from last year.

At the same time, homes are taking longer to sell with the median days on market hitting 40 in February 2025, up from 39 last year. This means buyers may face slightly less competition, giving them more negotiating power with sellers.

At ABL, we can help you seize on- and off-market opportunities before your competition beats you to them. Our flexible hard money loan programs can close in just a few days, giving you the capital you need—when you need it.

However, we’re more than just a lender. We’re a partner committed to your long-term success. That’s why we’ve compiled a list:

The Top Five Illinois Metros For Real Estate Investing in Illinois:

1. Rockford

In January 2025, Rockford was named the hottest housing market in the U.S. Analysts bestowed the title due to the city’s relative affordability, high housing demand, low inventory, and active market. Plus, the city’s home listings attracted nearly three times as many viewers on Realtor.com in December 2024 than the national average.

If you’re looking for a hot market with high appreciation potential, Rockford is a great choice. In February 2025, home sales were up 11.0% since last year. Meanwhile, the median sales price was $199,999, which is much lower than the national average but up 17.6% for the year.

2. Chicago

With a population of over 2.6 million, Chicago is the third-most populous U.S. city. Naturally, this makes it a major housing market with many investing opportunities. Long-term rentals are especially abundant as the city has a relatively high percentage of renters (54.5% compared to a national rate of 35%). Consider getting an ABL rental loan to secure your next deal.

In February 2025, the Chicago metro saw a slight 0.1% dip in home sales year-over-year. However, given Chicago’s sheer size, they still reached 5,160, which is over ten times the Illinois metro with the next highest level of home sales.

Meanwhile, the median sales price for Chicago homes was $344,000, a 7.5% jump from last year. If this high appreciation rate continues, investors who buy property now may see a substantial return on investment in the coming years.

3. Decatur

Decatur is a small city in central Illinois with a population of about 68,000. While the metro area’s home sales fell from 76 in February 2024 to 71 in February 2025 (a 6.6% drop), home values have increased dramatically during the same period.

In February 2025, the median home sales price in Decatur was $145,000, up from $113,500 a year earlier. That’s a 27.8% jump. Meanwhile, these are very low prices compared to the rest of the U.S. As a result, if you’re looking for an affordable market that still promises strong flipping returns, Decatur is a good choice. Use ABL’s fix-and-flip loans to secure funding and enhance your flipping returns.

4. Moline-Rock Island

Located along the Mississippi River on the Illinois-Iowa border, Moline and Rock Island have a combined population of about 78,000. While the metro area saw a slight dip in home prices year-over-year in February 2025 (-2.0%), it’s booming with real estate transactions.

From February 2024 to February 2025, Moline-Rock Island’s home sales jumped from 111 to 144, a 29.7% increase. This makes the metro a great area for flipping since there’s a relatively active buyer pool to which you can sell renovated properties for a profit.

5. Peoria

Peoria is one of the oldest non-native cities in Illinois, with a population of over 111,000. While home sales slowed by 17.4% year-over-year in February 2025 (mainly due to tight inventory), the metro saw the highest appreciation rate among Illinois metros during the same period.

In February 2025, the median Peoria home sales price hit $154,750, up from $98,500 last year, marking an impressive 57.1% jump. If this rapid increase in home values continues, flippers can expect to make a significant return on investment, whether they resell for a profit or get a cash-out refinance from ABL to pull out their sweat equity.

Partner with ABL

Ultimately, the key to real estate investing success in any Illinois city is working with the right partners. At ABL, our Illinois team has local expertise, industry connections, and flexible loan options that can take your investment to the next level. Pre-qualify for a hard money loan today!

Methodology

To determine the top cities in Illinois for real estate investment opportunities, we ranked 12 Illinois metros by the highest level of closed home sales and the highest median sales price in February 2025. Based on these rankings, we assigned each metro a final composite score and ranked the metros accordingly.

Note on sources:

• Illinois housing market data taken from Illinois REALTORS®
• National housing market data taken from Realtor.com® Economic Research
• Population and renter percentage data taken from the U.S. Census Bureau