chicago-condos & Chicago Real Estate pcherry on 31 May 2011 09:04 am

Suburban Apartment Rents Going Up

May 31, 2011 - If you think rents for suburban Chicago condos won’t follow the upward trend of downtown Chicago condos, think again. According to an estimate from Appraisal Research Counselors in a recent Crain’s report, suburban rents are expected to rise 5% to 6% this year.

Suburban Chicago apartment rents have already gone up 1% from the fourth quarter of last year (2010) and 5.5% from a year ago. Occupancy was 93.6% in the first qyarter of this year (2011), which is up from 92.9% in the fourth quarter of last year (2010) and 92.7% from a year ago, according to the article.

The current median net rent of $1.16 for suburban Chicago apartments is up 1% from the fourth quarter of last year (2010) and 5.5% from a year ago.

ARC Vice-president Ron DeVries was quoted in the article as saying that, “Right now, this is as strong as the suburban market has ever been.”

And don’t expect every apartment landlord to offer concessions on rent. In the fourth quarter of last year (2010) about 51.6% of apartment landlords offered the usual one month of free rent for a new lease. A year ago 57.1% of landlords offered concessions. But that dropped to 43.8% in the first quarter of this year (2011).

With more buyers sitting on the sidelines and opting to rent plus the difficulty that developers often have obtaining zoning for new suburban Chicago real estate projects, demand and rents will probably stay high for some time. Even with more developers and individual investors offering Chicago condos for rent, apartments are still the hottest thing out there.

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