Chicago Downtown Apartment Rents Hit All-Time High

August 27, 2012

chicago apartment rents increasing Once again, rent for downtown Chicago apartments rose in the second quarter according to Appraisal Research Counselors. The average net rent for top quality apartments has reached $2.57 a square foot, a 2.6 increase from the first quarter and 5.8 percent increase over last year.

Even though rents may be increasing, many residents are calling these Chicago real estate buildings home as occupancy of top tier apartments reached 96 percent during the second quarter, the highest level in six years.

However, for those looking for a little relief from high prices, change may soon be on the way. Nine new towers are under construction, which could add more than 7,000 rental units to the downtown area by the end of 2014. The balloon in supply would create more competition among landlords who would not be able to raise rents as aggressively as in the past.

Apartment occupancies and rents have increased dramatically over the last few years as more urbanites have chosen the flexibility and affordability of renting over the burden of owning in a depressed market. And, even though the housing market seems to be stabilizing, recent research shows that most tenants won’t be going anywhere fast anytime soon.

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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