Is the Rent Getting Too High on Chicago Real Estate?

March 16, 2013

new Chicago apartment rent risingAs rent keeps on climbing, 2013 looks to be an even better year to be a landlord, and a more expensive year to be a tenant. The median net suburban rent rose to $1.19 per square foot in the fourth quarter of 2012, up from $1.18 in the third quarter and $1.14 a year ago. This equates to a 4.2 percent annual increase and a 12 percent increase since 2009, according to Chicago-based Appraisal Research Counselors.

Even with rent costs expected to rise another 3 to 4 percent during 2013, occupancy rates are higher than they were a year ago. These high occupancy rates coupled with the signs of life in the housing market have been enough for construction on new Chicago apartments and condos in the suburbs to start.

Starts are strongest in Evanston, where three buildings are already under construction. Special attention also goes to the North Shore, which is considered by many investors to be the area of town to watch due to its 7.8 percent rise in demand. Whether supply outpaces demand a few years from now will depend on how many of the projects secure financing. It’s certainly a trend to watch as rates stay low and home ownership starts to heat up again!

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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