As far as the upscale multifamily market is concerned, the fallout and brief downturn from the pandemic are now far off in the rearview mirror. A year ago, landlords were offering generous concessions to ink new leases and to lure existing tenants to resign for another term, but now the pendulum has swung back into the favor of landlords, reports indicate.
The latest apartment report for the Chicago area from ApartmentList illustrate steady rent growth for all of 2021. Technically, the report suggests that Chicago rents have declined by 0.01% since last month, but otherwise, it appears to be mostly smooth sailing for Chicago-area landlords and property managers.
Over the last 12 months, the report indicates that Chicago rents have increased by 8.5%, which while a healthy gain, is still nearly half of the national rent growth of almost 16%. When looking at the rest of the state, Illinois rents have increased by almost 10% in the last twelve months. Within the Chicago region, the community that witnessed the highest rent growth was Naperville with roughly 14% increase in rents over the last year.
The report pegs the median price for a one-bedroom apartment in Chicago at $1,284 while the median rent for a two-bedroom is $1,415. A graphic shows the median two-bedroom rent price in Naperville at just under $2,000 per month while Schaumburg comes in at a close second at $1,960. Waukegan and Kenosha have some of the most affordable rents in the region, as the median monthly rent price for a two-bedroom in both communities is under $1,200.
When highlighting rent prices in Chicago, it’s always useful to see where the city stacks up with other major metros. Chicago has long had a reputation as being more affordable than coastal cities, but this trend has changed in recent years as Chicago has become increasingly more expensive — particular new product, and especial new product downtown. As expected, Chicago falls well below the rents in San Francisco, New York and Washington, DC. Meanwhile, Chicago leads Baltimore, Philadelphia and Houston.
