Housing Market
The western suburbs of Chicago continue to evolve — not just in housing prices or school rankings, but in the very way communities are being built and re-imagined. In 2025, several new developments across the region signal shifts in land use, infrastructure, housing types and commercial growth. Whether you’re a resident, prospective buyer, local business owner or just curious about suburban change, here are key trends and projects worth watching.
One of the most visible signs of change is in new home construction and suburban subdivisions. For example, Pulte Homes has plans for a 132-home subdivision in the southwest suburban area (Orland Park) covering roughly 72 acres, with homes ranging from 2,600 to 3,400 sq ft.
These types of developments indicate that even established suburbs are expanding, accommodating more families and offering newer construction options. There are also new developments going up in Lombard by Airhart which features cottage-style homes near downtown, and almost every suburb has single new construction projects that pop up on open lots throughou the year. Additionally, a large-scale apartment dwelling is being constructed in downtown Wheaton which will be home to a 340 units just across from the Metra station.
More supply of newly built homes gives more choices to buyers (especially those looking for move-in ready vs. fixer-upper).
Such expansions often bring new amenities (trails, playgrounds, preservation of trees) which enhance long-term value.
It also signals that suburban land is still in demand and developers see value in building beyond the traditional “core” of suburbs.
The suburban growth story isn’t just about homes. Commercial and office developments are also shifting westward. For instance, metals processor and distributor Ryerson Inc. signed a major office lease in early 2025 at 2655 Warrenville Road in Downers Grove — a signal that corporations still see value in suburban locations.
Additionally, industrial real estate in the western suburbs remains tight: vacancies are low, rents are rising, and new construction is limited — which all point to sustained demand.
More businesses relocating (or expanding) to the suburbs means jobs closer to home for local residents, shorter commutes for some, and a stronger local economy.
It can lead to more mixed-use spaces (office + retail + residential) which elevate the “town centre” feel rather than just being bedroom communities.
Commercial growth supports ancillary services (restaurants, retail, entertainment) which further enhance the suburban living experience.
Growth isn’t just about adding new buildings — it’s also about reinvesting in infrastructure and public amenities. Consider the plans in West Chicago for 2025: a newly designed community park, upgrades to the tree canopy, major street reconstructions, and an online building permit platform to streamline approvals.
These projects show that municipalities recognize the need to not only expand, but to upgrade for quality of life, sustainability and resilience.
Public investment helps ageing suburbs remain competitive, attractive, and livable.
New parks and streetscape improvements make suburban living more appealing (walkability, aesthetics, recreation) and can raise property values.
Streamlined government services (e.g., online permits) reduce friction for both developers and homeowners — making growth more efficient.
In many suburbs, growth isn’t just outward — it’s inward via redevelopment of industrial, commercial, or underused land. For example, in Addison there are sites near Army Trail Road & Lombard Road and zoned parcels around 1800 W Fullerton that are attracting interest for build-to-suit industrial, last-mile logistics, medical offices or multi-tenant retail.
These reuse opportunities reflect changing suburban economy (e.g., e-commerce, health services, smaller footprint offices) and the desire to repurpose rather than just keep expanding.
Redevelopment helps make better use of land closer to transit and infrastructure, rather than always pushing further outward.
It can help diversify land use in the suburbs (not just single-family homes, but mixed-use, office, light industrial) which makes communities more resilient.
It offers buyers/investors alternative housing/real-estate types beyond the standard detached house.
When it comes to which places are really growing in 2025, a few names keep popping up.
Glen Ellyn: Known for its charming downtown and good schools, it’s being flagged as a top suburb to watch.
Wheaton: With excellent connectivity (I-88, Metra) plus a strong housing market, it remains appealing.
Downers Grove: New growth in downtown amenities, transportation, and housing options.
These suburbs show the trend: strong fundamentals (schools, transit, amenities) and new development activity = good signs for growth-oriented residents/investors.
Growth is positive, but as with any evolving region, there are things to be mindful of:
Supply vs. demand: New homes and office spaces are being built, but aging stock and land constraints could push up costs. (E.g., industrial vacancy in the west suburbs is low and sometimes negative.
Infrastructure pressure: More growth means more traffic, more services needed, more wear on roads/parks/schools. Towns that invest wisely will fare better.
Maintaining character: Many suburbs were valued for their charm, tree-lined streets, quiet neighborhoods. Rapid change can risk what made these places special.
Affordability & accessibility: As demand rises, price pressure may push out certain buyer segments. New developments need to consider diverse housing needs.
Transit & sustainability: Suburbs that integrate good transit links, walkability, green space will be more competitive in the long run.
If you live in or are considering buying in the western Chicago suburbs, 2025 offers real opportunities — from new homes and offices to revitalized downtowns and better infrastructure.
Here are a few takeaway pointers:
Keep an eye on suburbs with both strong fundamentals and active development (schools, transit, downtown amenities + building activity).
Visit the sites: new subdivisions, office parks, redevelopment zones — they give a feel for where your dollars (or lifestyle) are going.
Check municipal plans and infrastructure budgets: these hint at which communities are investing for growth (e.g., West Chicago’s capital improvement budget).
Think long term: growth now can mean value later if managed well — but change needs to align with what you value in a home/community (commute, schools, walkability, green space).
If you like, I can pull together a map and list of 8–10 specific developments across the western suburbs (with photos, timelines and what to expect) — we can zoom in on suburbs like Naperville, Oak Brook, Glen Ellyn, etc. Would you like that?
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Welcome to The Thornton Team Residential, your premier real estate experts in Wheaton, Glen Ellyn, and Chicago Suburbs. As a top 1.5% producing team, we understand that a home is more than a property, it's about community. Led by Michael Thornton, a top-tier member of NAR with a proven track record, we are dedicated to making your real estate journey seamless. Join us in finding not just a house but a place full of awesome memories that you call home.