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With the current economic climate, there has been increased demand for rentals in Chicago this year. This is due to a combination of factors:
- Loan interest rate increases resulting in fewer people being able to afford to buy property
- Unsustainable increases in the costs of operation. Utility bills increased over 100% in some circumstances
- Property tax hikes
All of these forces have combined to make renting a much more attractive option for many people, however, the surge in supply has put a damper on rent increases.
The number of new construction units in the Chicago downtown high rise market is set to reach its highest point in the next 3 years. Even though the nation is not able to meet the demand for housing, Chicago is releasing more new construction than ever before in this 3 year period, according to Block Club Chicago. The competition is fierce, which is why rent increases have been limited to a 3-5% range early on this year. The Apartment Source expects to see more concessions from landlords and high rises this year in order to keep their newly established rent highs (last year, some of these units saw rent increases of 20-26%!).
THIS IS A GREAT YEAR FOR:
- The high rise renter, who will have more options for new construction and luxury with concessions.
- Landlords’ who list with The Apartment Source. If we notice a shortage of inventory in any subsection of the market, we can certainly test new pricing. We keep real time reporting on our lead demand and inventory, and historically outperform the MLS in market price and market time.
While we utilize the MLS, The Apartment Source doesn’t solely rely on it. Our model allows us to provide landlords with Less Vacancy, Stronger Rents, and Happier Tenants. Contact our Landlord Services Department today to ensure your properties are priced correctly to maximize your investment.
The Apartment Source | Landlord Services Department
773.404.9900 or Info@ApartmentSourceChicago.com
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