Happy Spring and April to one and all.
This is Charles McShan with Century 21 Universal, from Chicago, IL. Winter is leaving the Midwest. Spring is in the air, and for many, 2026 will be the year they will become homebuyers. Why is that so important today? Well, if you go back a few years, if you were a renter within the Chicago land area, rent was very reasonable. Then the coronavirus pandemic took over the world. When that tragedy ended, the world had changed. Interest rates dropped, then shot back up over time, and so did home prices and rental rates. And here we are, the year 2026. Interest rates dropped below 6%. A few weeks ago, but now we are at war, and rates, along with gasoline and everything else, are rising, affecting millions. In the Chicagoland area, rental leases terminate either in the last week of June or September. Many are paying over $ 2,400 for 3-bedroom rentals. If you are paying that much rent, why not contemplate becoming a homeowner?
This blog post will give you not just one reason but 7 reasons to become a homeowner.
Article Guide
Reason 1: Tax Breaks
Unlike renters, homeowners can receive tax breaks. Yes, according to your county and state tax laws, you can receive tax breaks for mortgage interest, state and local property taxes, and mortgage points. There are other things that you can and cannot deduct, so it would be wise for you to consult a tax professional. within your local jurisdiction
Reason 2: Equity
When you pay your monthly rent, sure, you are paying for a roof over your head and your family’s, but once paid, it is like playing dice. Point seen. The money is gone; that money only benefits the landlord. When you purchase a home, your mortgage payment will start off paying more on the mortgage than the principal, but over time, you will be paying more on the principal. You will gain equity; you can use that equity or pay off your mortgage. And you will become a proud homeowner.
Reason 3: Savings
Speaking of equity, building equity in your home is a ready-made savings plan. When and if you decide to sell your home, you can generally take up to $ 250,000 ($ 500,000 for a married couple) as a gain without owing any federal income tax.
Reason 4: Appreciation
Real estate has long-term stable growth in value. While year-to-year fluctuations are normal, median existing-home sales prices increased an average of 6.5% each year from 1972 through 2005. They rose 88.5% over the last 10 years, according to the National Association of Realtors. Add to this the fact that the number of U.S. households is expected to rise above 15% over the next decade, creating continued high demand for housing.
Reason 5: Predictability
Unlike paying rent, your fixed-mortgage payments don’t rise over the years, so your home costs could drop over time. Being a homeowner, you will pay property taxes. The better the home and its location, the more property taxes you will pay. As a renter, you also pay those taxes, but they are included in your monthly rent. Property taxes pay for police, fire, ambulance services, pothole repair, teachers’ salaries, and a whole lot more. The salaries of those workers will always increase; thus, your taxes must rise to pay them. Regarding insurance, your rates will also increase to cover damage from weather, theft, and other issues that may affect your home. Those are some reasons property taxes and insurance rates continually go up.
Reason 6: Stability
Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
Reason 7: Freedom
Yes, in most rentals, you cannot paint the rooms in your preferred colors or add fixtures throughout the unit without getting into trouble with the landlord. Some forms of homeownership, such as condos, certain townhomes, and co-ops, have HOA rules that can result in penalties for violations, including installing drapes, blinds, or curtains that do not match the rest of the subdivision. That will not be a restriction; it, too, will be freedom because you will know in advance what the HOA rules are before you sign the contract, and you will be free to say yes or no. If you do not know what the term “HOA” means, before thinking about buying a condo or co-op, you should read thisarticle on this subject I wrote to learn about the various forms of homeownership on the market today. To learn more, you can read an article on this subject here: Brown and Green Cute Illustration Home Sweet Home Game Presentation (1). Click here
Yes, there are many forms of homeownership, but by far the most common is purchasing a single-family home. What sort of freedom, you might be asking? Well, you can plant what you want, place chairs, grills, or anything else anywhere you want. You can party hearty and work on cars in your driveway. In short, you can almost do anything you want as long as you do not break local laws and ordinances. There you have it, Freedom.
I just gave you 7 reasons to become a homeowner in 2026. I’m sure you can come up with more reasons. Rental prices are not coming down, so purchasing a home would be a wise investment. Are you a Chicagoland renter whose lease will end soon? If so, you have a decision to make. Yes, home prices are going up, but there are many first-time homebuyer assistance programs available. You no longer need 20% down to purchase a home. You can prove that by reading this article. click here
While you no longer need to put 20% down to purchase a home, you will still need additional funds to cover closing costs. These are the costs of transferring ownership from the seller to the buyer. There are money fees involved, and you need to know about these costs upfront because they will be around 4% of the home’s selling price. To learn more about these fees, please read this post I wrote on this subject a few years ago.click here
Important Update for the rental industry about 2026!
IF you need one more year of renting before you can even think of purchasing a home, this paragraph is for you. In the Chicagoland area, rental prices have skyrocketed, and they are not coming down anytime soon. Two-bedroom units start around $1.800; three-bedroom units, depending on location, are from $2.400 to over $3.000 a month. In the past, landlords accepted co-signers when the tenants had bad credit. In 2026, that trend is almost gone. Most landlords no longer will take that risk. Many renters move in, pay the first two or three months of rent, and then stop paying. It will take the landlord over a year to evict them. Some of these renters have their parents co-sign for them, yet they still move in, refuse to pay, or fall behind on payments, thereby destroying their parents’ credit.
People no longer care about the people who are cosigning for them, and while they are cosigning, they mess it up for everyone else. So now landlords are avoiding this liability. If your credit score is below 700, the landlord will not rent to you in 2026, even with a co-signer. Also, having bankruptcies and evictions on your record will get you rejected. So once again every year, I say this, “For those young people and people not too young, you need good credit to rent an apartment in 2026. Pay your rent on time and keep all receipts. Never screw your landlord because it will come back to haunt you.
A lot of people do not realize that Chicago has had the cheapest rent of any big city. I knew people living in Brooklyn in 2023 were paying $ 2,900 a month in rent. I know a lady living in Boston today who now pays $ 3,000 for a two-bedroom unit. My son also lives in Boston. He shares a three-bedroom rental with 2 other people, and their rent is around $5,000 a month. So in reality, we in the Chicagoland area have had it good, and now we have caught up with the rest of the country. If you want more answers, why rental prices are increasing in the Chicago area, Don Debat, a news columnist for Inside Publications, a local Northside free newspaper, posted an article on this subject. If you wish to read it, click here.
Summary!
I will say it again, Spring is in the air. Will 2026 be the year you finally decide to become a homeowner? Only you can answer that question. But in review, please consider these reasons. While renting offers flexibility and fewer upfront responsibilities, buying a home is the superior choice for long-term financial wealth. It converts housing expenses from a monthly loss into a long-term asset, providing equity, tax benefits, and stability that protect you from inflation. Renters are at the mercy of landlords’ rent increases or property sales, whereas homeowners’ mortgage payments, minus taxes and insurance, can remain the same. Some people are saying that if interest rates drop, so will home prices. Wrong! Home prices have increased over 20% by last year. If interest rates drop to 5%, home prices will continue to soar, and millions of people will be priced out of the market if they are not already.
Conclusion!
If 2026 is the year to buy that home you have been thinking about. Please follow these suggestions: Talk to your lender first, and if you are in the Chicagoland area, then contact me second. If you are a renter, most lenders will ask you for your rental receipts for the last 2 years, along with bank records and employment verifications. Keep your credit score over 740 and keep your credit card purchases on the low side. Please do not go out and buy an automobile or make a big furniture purchase until you have purchased that home. If you have big bill payments or late bill payments, try to close them out. If you need extra income to pay off those debts, drive part-time for Uber, Lyft, or DoorDash. You’ve got time to work on it. This is the first of a series on what it will take to purchase a home in 2026. If you are thinking of buying a home this year, you need an up-to-date buyer’s guide. click here
If you are a first-time home buyer, you will really appreciate this guide click here
I am here, ready, willing, and able to answer all of your questions about buying a home in 2026. My office is located at 7300 Western Ave in the heart of the North Side West Ridge area of Chicago, IL. I hope to hear from everyone. Any questions or comments, please enter them in the boxes below. Thank you
Charles McShan
312 9143678
cmac2121@yahoo.com
