It’s been over three years since the world was turned on its head by COVID-19, but the real estate market is still feeling its effects as rental prices continue to climb higher and higher…and higher, based on the recent rent report by Apartment List.
So, what’s the deal in Chicago? The report found that in the past year, rental prices have gone up by 5.2%. That means the average one-bedroom apartment now costs $1,301 per month.
But there are still some affordable neighborhoods where renters can find good deals. For example, West Pullman is the most affordable neighborhood in Chicagoland, with a median two-bedroom apartment renting for just $1,100 per month in March 2023. Other affordable neighborhoods include Gage Park, Austin and Englewood, yet they don’t come with the frills today’s renters are after.
The truth is, COVID-19 resulted in renters placing more value on outdoor space and in-unit laundry, which come at a price. For this reason, Apartment List reported a significant decrease in renter satisfaction—only 49.7% of renters in the city feel satisfied with their rental experience, compared to 61% in 2019. Luxury amenities continue to attract renters to some of the most expensive neighborhoods in Chicago, including the Gold Coast, Streeterville and River North where the median rent for a two-bedroom apartment is over $3,000 per month.
And it’s younger renters that are struggling the most to find affordable housing in Chicago. Renters between the ages of 18 and 29 are spending an average of 33% of their income on rent which is higher than any other age group, likely due to the fact that younger renters are just starting out in their careers and do not have as much disposable income as older renters.
