Illinois is the birthplace of the world’s first skyscraper! Back in 1885, Chicago unveiled the Home Insurance Building, a whopping 10 stories high – a major feat for its time. But Illinois has more to offer than stunning architecture. It’s an intriguing state for international real estate investors looking to build wealth through rental income.
While Chicago often steals the show, cities across the state offer incredible opportunities for rental property investments with promising returns. Here are six Illinois cities foreign investors should explore to find rental properties.
Chicago is Illinois’ largest city and the home of deep dish pizza. It has tons of in-demand neighborhoods like Logan Square, the West Loop, and Lakeview. Chicago pulls in renters by the thousands, thanks to its thriving job market, one-of-a-kind neighborhoods, and recreation opportunities–including 24 sand beaches!
In 2023, renters outnumbered homeowners in Chicago by a whopping 100,000. Not to mention, Chicago is a popular tourist town that attracts 50 million tourists each year, many of which look for short-term rentals when they visit. So whether you’re aiming for a high-end short-term rental or keeping it budget-friendly with a traditional apartment home, there’s a variety of rental opportunities in Chicago.
Just 35 miles west of Chicago, Aurora is Illinois' second-largest city, known for its affordable housing and laid-back, family-friendly vibe. With a growing job market and an educated community earning above-average incomes, there’s a diverse pool of potential renters available.
The area has also seen steady appreciation. Home values in Aurora have jumped from under $200,000 to around $350,000 over the past five years, showing solid growth potential for anyone ready to dive into this market.
Naperville is one of the state’s most sought-after suburbs, situated west of Chicago. While there are many homeowners in this community, it also attracts a wealthier rental pool willing to spend a little more for rent than in other cities.
With top-tier schools, parks, and a booming local economy, it’s no wonder families and professionals flock here for that perfect suburban lifestyle. Property prices are on the higher side, but Naperville’s strong rental market and appreciation make it a solid choice for investors who are ready to make a bigger initial investment.
Peoria has a rich history of producing whiskey —it was the whiskey capital of the world 100 years ago. Today, Peoria keeps that legacy alive with JK Williams whiskey and a handful of smaller distilleries.
Beyond good whiskey, Peoria serves up a community with plenty of affordably priced homes, making it a great option for first-time foreign investors looking for a smaller up-front commitment. Prices have been rising over 8% year-over-year, showing strong demand in this historic town. Peoria may not have the size of Chicago or Aurora, but with its affordability and stable rental market, it’s an attractive investment choice.
As Illinois’ third-largest city, Rockford brings a unique opportunity for investors looking for affordable housing with big potential. Known for its solid manufacturing industry and easy access to Chicago, Rockford attracts renters seeking that sweet spot between affordable living and good job options.
Plus, Rockford real estate boasts the highest appreciation rate of any city featured on this list, making it a top pick for those looking to see property values climb. With prices much lower than other Illinois hotspots, Rockford is a smart choice for foreign investors aiming to maximize rental income without a massive upfront investment.
Let’s have a toast– just kidding, wrong champagne.
Home to the University of Illinois, Champaign has a strong, steady rental demand fueled by students, faculty, and university staff. With nearly 60,000 students – the largest student body in university history – this town sees a constant influx of new renters each semester, making it easy to keep units occupied and cash flow steady.
Champaign and its neighbor Urbana form a lively metropolitan area, giving this college town plenty of energy and appeal. Property prices here are moderate relative to other Illinois cities, but rental yields are competitive due to the student housing market.
Illinois has a little something for every real estate investor. Each city on this list offers its own perks, whether it’s Rockford’s affordable homes, Naperville’s upscale suburban charm, or Champaign’s ever-reliable student rental scene.
Are you ready to dive in?
Waltz can make those investment property dreams a reality! We handle everything digitally and keep it moving fast. Plus, we’ll set you up with a U.S. bank account, an LLC, and competitive financing, so you’re ready to roll. Curious about investing in Illinois real estate?
All figures are accurate as of November 2024 and may change over time.* Sources for all city-related statistics:
Home price data: Zillow Housing Market
Rental price data: Zillow Rental Market Trends
Property tax data: Smart Asset Property Tax Calculator
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