If the latest housing reports make anything clear, it’s this: it is not a renter’s market. Real estate investors are banking on people continuing to rent as occupancy rates have reached all-time highs, and they’re raising rents all over Chicago and the suburbs. From across the Web, there’s the story of a developer, Newcastle, putting down a hefty $10.55 million to secure a 13-story, 98-unit apartment. And across the city, construction companies are gearing up to build new apartment buildings and rejuvenate old buildings. Rent isn’t just expensive for residential renters either; stores on Michigan Avenue are now forking over the highest rents since 2001.
With rents on the rise in Chicago this year, it’s never been a better time to buy.
But the news that people considering renting or buying should pay the most attention to? While the rental market is hot, hot, hot right now, it’s only hot for the landlords. All over the city, landlords are attempting to raise rents at exorbitant rates. After all, as more and more people start renting, they’re competing for space. With demand so high, landlords feel as if they can raise the rent with little complaint.
Throughout the country, rents are expected to increase five percent in 2011. This means, as much as in any time in recent memory, the people of Chicago are considering home ownership.