chicago-condos Dave on 09 May 2008 09:52 pm
Chicago rental market heats up
A tight credit market and uncertainty in the real estate market in the Chicago region has led many would-be buyers to look at renting that condominium instead of buying. A sharp increase in the number of renters has led to an increase in prices for rental units around the city.
According to data from Hendricks & Parners, a Phoenix-based company, the vacancy rate for rental units in Chicago was 4.7 percent during the first quarter. In the city, a vacancy rate below 5 percent represents a favorable market for landlords.
The increase in demand for rental units is welcomed by landlords who have suffered stagnant rents for the past few years. As people who traditionally opted for rental units were able to qualify for new mortgages, vacancy rates increased around the city, often hitting more than 7 percent. Prices for rental units around downtown have risen by 5 percent annually in many neighborhoods.
Even as the government and local creditors work to provide funding for buyers, the uncertain real estate market keeps many buyers on the sidelines. Sales of Chicago Condos were down 31 percent in April from the same month last year, and prices rose by 21 percent.
Technorati Tags: Chicago Condos For Sale, Chicago Real Estate, Chicago Rental Market
