The rentals market is experiencing an exciting boom in demand, most noticeably in Chicago’s North Side. The recent article “Why rents are rising on the North Side,” featured in Crain’s Chicago Business tells us that demand is not keeping up with Chicago’s booming downtown rental development but demand is raising in north side neighborhoods where few apartment developments are being constructed.
Chicago based Cobblestone Development (properties management), Judy Newbold along with her husband Bill Conforti, own 15 buildings in the Chicago’s North Side. Mrs. Newbold says that with the raise in demand she has been filling vacancies in a shorter period of time, particularly with renovated rental units that are rehabbed and have modern amenities. Tenants are also signing year long leases instead of month-to-month, making the first round of rental season a successful one for Cobblestone Development.
With top of the line amenities it’s no wonder tenants are sighing longer leases, but where did this influx of renters come from?
It’s not news to any one that the housing crisis affected buyer market, many of today’s tenants are yesterdays buyer base. The Institute of Housing Studies at DePaul University recently published, The State of Rental Housing in Cook County, report that analyzes fluctuation in rental demand, and studies changes of supply in rental housing from 2000 – 2011. In the graph below it’s evident that after the collapse of the housing market, the rental market increased 10% from 2007-2011.
One of the reasons why rental properties are going strong can be attributed to an influx of students and professional relocating to Chicago. In 2011 over 68% of renters were ages 24-36 years old.
With the slow increase of the housing and job market it seems that the rental boom trend is here to stay. Still Chicago landlords have to worry about Cook County’s steady rise in property taxes and safety regulations make it harder for landlords to keep flat rates (Gallun).
The Institute of Housing Studies at DePaul University. 2013. The State of Rental Housing in Cook County.
Gallun, Alby. “Rents rising on the North Side.” Crain’s Chicago Business. April 14, 2014.