chicago-condos & Chicago Real Estate pcherry on 28 Feb 2011 09:16 am

Suburban Chicago Apartment Rents On The Rise

February 28, 2011 - We’ve been talking about how downtown Chicago apartments are in high demand right now and that rents are expected to rise this spring as demand for units increases in the typically busier season for moving. But what about suburban Chicago apartments? The answer is the same, according to a recent Crain’s article. Rents went up 7.4% for suburban Chicago apartments in the fourth quarter of 2010.

The median net rent for suburban Chicago apartments was $1.15 per square foot in Q4 of 2010, the article states. That price is identical to what rents ran in Q3 of 2010 but it was 7.4% higher than net rents per square foot in the fourth quarter of 2009. Appraisal Research Counselors crunched those numbers and also found that net rents are at the most expensive rate per square foot that they have been since 2003 when ARC started keeping records.

Occupancy at suburban Chicago apartments is also up, according to the article. The occupancy rate in Q4 of 2010 was 92.9% which is the same as it was in Q3 of 2010 but that is an increase from the Q4 2009 occupancy rate of 92.2%.

ARC vice-president Ron DeVries predicted earlier that downtown Chicago apartment rents would increase 7% to 8% this year and he states in this article that he believes that suburban Chicago apartment rents will also increase by around 5% this year and occupancy rates will go up to 94%.

The report also stated that area homeownership is down to 67.2%, which is the lowest it has been in eight years. Buyers are still holding back from purchasing Chicago condos due to high unemployment rates, difficulty in obtaining financing and the fear that home values will decline more. So it looks as though rental Chicago real estate will continue to dominate the news for a while.

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