May
01

Real Estate’s Hottest Trend: Rent

May 01, 2012

The Northern Illinois region is showing a boom in the multifamily unit market, and landlords are experiencing a high watermark in their business.

Chicagoland multifamily units are being snatched up by investors eager to sink their money into what has proved a very strong and steadily rising asset. Buildings with five or more rentals have seen the most enthusiastic surge with 348 properties sold in 2011, a 27 percent increase over 2010 according to statistics provided by Midwest Real Estate Data. So far, sales of these properties in the first quarter of 2012 have been 14 percent higher than a year ago.

Rent or Buy signs

Chicago apartments are expected to see an average annual increase of 3.9 percent during the next four years and a vacancy rate that will decline to just 4 percent from a current level of 4.6 percent. Landlords should benefit from both trends according to Reis Reports.

Renting multifamily units has become a necessity for many people who have lost their homes due to foreclosure or who have sold their property in a short sale.

“Multifamily properties will remain strong until we see short sales and foreclosure sales significantly reduced,” said Kelly Dyson, an agent with RE/MAX Professionals Select in Naperville, Ill.

Investors have been considering building apartment complexes due to the high demand for rental properties throughout Northern Illinois, a rarity in the years following the mortgage crisis. This is also in sharp contrast to commercial real estate, which has seen limited new construction.

Investors are eager to buy properties, but are not so eager to pour money into rentals that are bereft of amenities favored by today’s consumers such as modern kitchens and high-end appliances. They also desire properties near highways, reputable school districts and shopping malls.

Until the housing market gets on stable footing once again, expect rent to be a buzz word for the foreseeable future.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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