Residents of the neighborhoods surrounding Chicago’s historic Jackson Park could see a short-term boost in housing prices since word came that the Obama presidential library will likely be located in the area.
It was reported this week that President Barack Obama and First Lady Michelle Obama bypassed the city’s Washington Park neighborhood in favor of Jackson Park as the home of the library, although a formal announcement is not expected until next week. Jackson Park is already the site of Chicago’s Museum of Science and Industry.
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Some brokers believe that the library could deliver a short-term boost to property prices in the surrounding South Side neighborhoods of Woodlawn and Hyde Park, where President Obama still owns a home.
The former has traditionally been a run-down African-American neighborhood, which is slowly being gentrified, while the latter is close to the University of Chicago and has a booming real estate market.
The University has been selling properties, once used as student dorms in Hyde Park to capitalize on the strong market and according to Crain's Chicago Business, it recently sold three buildings to a real estate investment firm in the city.
“The fact that there will be a lot more tourists in the area as a result of the library and, therefore, an increase in amenities such as gas stations and grocery stores will have an upward effect on pricing in the area,” said Lamar Austin, Chicago-based agent for real estate brokerage Redfin. “This is especially true for condos, a lot of which are under development.”
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Michael Hulett, a broker at Jameson Sotheby's International Realty, said that while he agreed there could be a short-term boost, especially in the rental market as workers temporarily move into the area, there is unlikely to be a long-term impact.
“If you look at the United Center, a sports arena in the Near West Side, everyone said it was going to change the area when it was being built, but it never did,” he said.
“It will be a really nice feather in the cap for the community, but can’t see it changing property values that much,” Mr. Hulett added.