Chicago’s real estate market is on fire — and a little red brick house in Dolton once owned by Pope Leo XIV’s family is fanning the flames.
According to new data, the median home price in the Chicago metro area hit an all-time high of $379,900 in May, up 5.5% from last year. Within the city, prices climbed even faster, rising 8.3%, as much of the rest of the country’s housing market slows or contracts.
While this boom signals strength for the region, it’s also stirring up headaches — none more symbolic than the ongoing saga of Pope Leo XIV’s childhood home in Dolton, a south suburb of Chicago.
Originally listed for just under $220,000, the 1,050-square-foot red brick house on East 141st Place was pulled from the market shortly after Prevost’s elevation to the papacy. Now, it’s set to be auctioned through Paramount Realty USA — the same firm that handled the sale of Donald Trump’s childhood home in Queens for $2.14 million — with a reserve price of $250,000. The auction, initially set for June, has been postponed to July 17.
The property is attracting more than spiritual pilgrims and curious investors. The village of Dolton has vowed to buy the house, either through purchase or eminent domain, in hopes of turning it into a civic landmark. But that’s drawn legal scrutiny.
A federal system wants to block Dolton from acquiring the house, despite claims from a former village employee that buying the property would be irresponsible, given Dolton’s dire financial condition.
Still, Dolton’s attornies will deny any zoning changes needed to turn the house into anything beyond a residence — effectively making ownership a bureaucratic battle for anyone but the municipality itself.
Boom Market, Backlash Coming
While the drama over the Pope’s former home grabs headlines, the larger picture is clear: Chicago is one of the hottest real estate markets in the nation. Thanks to relative affordability and slow pandemic-era growth, the region is seeing sustained price appreciation — even as coastal markets in Florida, California, and Texas begin to cool or even contract.
The S&P CoreLogic Case-Shiller Index shows Chicago home prices up 6.02% in April, more than double the 2.72% national increase, and second only to New York. And yet, sales volume is falling — a result of low inventory, as homeowners cling to mortgage rates secured before 2022’s hike.
In fact, May saw the fewest home sales in the city and metro area since 2012 (excluding the pandemic’s earliest days). Buyers are competing for a shrinking pool of listings — and paying steeply to win.
Assessment Shock Coming Soon
All of this — especially publicized, high-profile sales like the Pope’s childhood home — could wreak havoc on property assessments in the coming years.
With so few transactions, even one emotional or outsized sale can distort comparable values used by the Cook County Assessor’s Office. Real estate experts warn that nearby homes may soon be assessed — and taxed — based on flawed or inflated market data.
“An auction like this creates buzz, but it also messes with the comp set,” said one local appraiser. “If it closes well above market, it could skew how the whole neighborhood is valued next year.”
That could mean higher property taxes for longtime homeowners near the Dolton property — even if they never intend to sell.
Without a major push for zoning reform, incentives for development, and better reuse of vacant properties, prices — and pressure on local governments — will only continue to rise.
