Chicago Rents Surge as City Ranks Among Priciest in the Nation
Renters in Chicago are feeling the pinch as new data shows that rental prices are on the rise across the city. According to a national report by rental platform Zumper, Chicago now ranks as the 11th priciest city to rent in the U.S.
The Rise of Rent Prices
Crystal Chen, a spokesperson for Zumper, highlighted the significant increases, noting that Chicago’s one-bedroom annual rate has seen nearly an 18% increase, making it the third largest in the country. "One beds are currently at $2,270, up over 17% year over year, and two beds are at $2,700, up about 13% year over year," Chen said. She attributed part of the increase to a lower rental vacancy rate and a limited number of new rentals hitting the market.
Factors Contributing to the Increase
So over the last five years, Chicago’s rental inventory has increased about five, five and a half percent. Meanwhile, the national average is about 10 percent. Also, the greatest addition of inventory was in the Loop, which has a lot of luxury buildings, and that could be fueling the high asking rents as well. Another factor driving more people to the rental market is the high interest and mortgage rates, which are keeping potential homebuyers on the sidelines.
Impact on Renters
Donna Rasmussen, with the Consumer Counseling Service of Northern Illinois, said that many people around Chicago are struggling with rising rent. "A lot of younger families that might have been buying a house before the rates increased are waiting now for the rates to go down," Rasmussen said. "They’re taking up inventory of apartments and rental houses that people would normally be able to get into." Rasmussen’s organization has been busier than ever in recent months, offering assistance to those in need.
Finding Affordable Housing Options
So, with rent on the rise, how can you find an affordable housing option? Rasmussen suggests starting with a deep dive into your monthly expenses. "Keep a good eye on your checkbook. Look at your checking account statement when you get it," she advised. "I can tell you that more often than not we find people who have six streaming services." Another way to save is to consider moving during the winter when fewer people are searching for new rentals. "Winter is definitely the best time to move if you can, since typically, property owners like to price down rental units for the holidays," Chen said.
Tips for Finding Affordable Housing
You might also save by asking building managers about any move-in deals they’re offering. "Some look-and-lease specials that could shave at least a couple hundred dollars off your move-in price," Chen said. "And if you ask the landlord to sign a longer lease just to secure in a rate, that could make you stand out among the competition as well." Rasmussen emphasized the importance of working out your finances before committing to a new place. "Really think about what you can afford when you’re thinking of moving," she said. "If you’re not sure what you can afford, don’t wing it. See somebody who can help you."
Conclusion
The bottom line, according to experts: If you find a place you like at the right price, be ready to move quickly. Competition is expected to remain high through at least the fall of this year, and so are those higher rent prices.
Frequently Asked Questions
Q: Why are rent prices increasing in Chicago?
A: Rent prices are increasing due to a combination of factors, including a lower rental vacancy rate, a limited number of new rentals hitting the market, and high interest and mortgage rates keeping potential homebuyers on the sidelines.
Q: What can I do to find an affordable housing option?
A: Start by taking a close look at your monthly expenses, consider moving during the winter, and ask building managers about any move-in deals they may be offering.
Q: How can I make sure I can afford a new place?
A: Make sure to work out your finances before committing to a new place, and consider seeking help from a financial advisor or housing counselor if you’re unsure what you can afford.
