Still holding out for a better deal on an apartment in Chicago this spring? Think again. The large supply of condo-quality rentals in Chicago’s top neighborhoods has been shrinking due to high demand…and supply is running short. You can expect rent to be on the rise this spring and throughout the year in Chicago’s top neighborhoods according to Appraisal Research Counselors in Chicago.
An increase of around 8% is anticipated in Chicago’s top neighborhoods in 2011. There are still concessions to be had, but with vacancy levels way down landlords will raise their prices. Renewal tenants should not be surprised by an increase in rent by a few percentage points, but new tenants will be hit especially hard.
Though the supply of individually owned condo rentals rented by their owners sky-rocketed to record levels in 2010, and supply of new inventory is at a virtual stand-still. Couple that with so many renters in the market who would otherwise purchase a condo (and have the income to do so), it appears as though shortage is imminent…as will be potentially inflationary rental prices.
Unless the demand is offset by those who opt to purchase a condo, the supply of apartments in Chicago’s top neighborhoods will surely return to the dismal offerings of the pre-housing boom of the 1990’s: outdated and run-down apartment stock for premium prices with absentee landlord’s.
If you’re looking to rent for another year, its a good idea to lock something down sooner than later. There are deals to be had, but they’ll be snatched up quick. Come April, I fear the days of crazy cheap luxury apartment deals to be behind us. Maybe the time to buy is now? Only time will tell…but of course, “the early bird get’s the worm” so they say. Perhaps the words of Warren Buffet are even more apropos: “Be fearful when others are greedy, and greedy when others are fearful”.
Whether you’re looking to rent or to purchase, CondoDomain can help. Browse inventory online or give us a call. We’ll show you how much we appreciate the opportunity to earn your business with best-in-class customer service: http://chicago.condodomain.com
Kipp Blackburn | Real Estate Consultant | 312.730.330 | firstname.lastname@example.org