(WBBM NEWSRADIO) — If you or someone you know are planning on moving apartments this year, you can expect plenty of competition. A recent analysis shows Chicago and the suburbs are among the hottest rental markets in the country.
RentCafe finds there are 14 prospective renters for every available apartment in the suburbs. In the city, it’s 11 people.
Doug Ressler is an analyst with YardiMatrix, who explains the competition comes even though our region is losing population, because cities that are gaining like Austin, Texas are seeing a lot of new construction.
“Developers are seeing that the density projections for Chicago aren't there and they're not building, number one, but number two is the cost of building,” Ressler said.
He expects our central location and access to rail, air and water connections to keep us competitive.
“Don't write Chicago off. I've always liked Chicago in terms, because of its transportation capabilities.”
RentCafe sees north Evanston as the most competitive area, followed by the Near North, Loop, Near West Side and Near South Sides in the city.
The suburbs they see as the most competitive are Highland Park, Buffalo Grove, outlying Will County, Lombard and Mundelein.
The key metrics RentCafe examined were: the number of days a unit stayed vacant, the percentage of rentals that were occupied, the number of prospective renters competing for an apartment, the percentage of renters who renewed their leases, and the share of apartments completed this year.
Overall the city has a rental competitiveness index of 82.5 and the suburbs has one of 88. The national rental competitiveness index is 74.4, according to RentCafe
Ressler points to higher interest rates and slow construction as reasons millennials are choosing to keep renting instead of buying. A trend he expects to continue this year.
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