Supply and demand is having a big impact on Chicago downtown apartment rents. High demand and short supply is pricing many people out of the market.
Downtown rents rose more than 30-percent last year after a sharp COVID-related drop in 2020.
“Sticker shock” is how the rent situation has been described concerning high-end downtown apartments.
The market has reportedly rebounded from 2020 and then some.
Integra Realty Resources told Crains, a 1,000 square-foot apartment that may have rented for about $2,500 a month in 2020, when people were leaving downtown and landlords were offering deals. The same apartment was nearly $3,400 at the end of last year.
Senior Managing Director Ron DeVries said, “A lot of people are absolutely priced out of the market.”
He suggested looking just outside downtown, where rents are 20% lower for similar apartments.
Building slowed in 2020 - that’s rebounding, he said.
Devries expects another 5% increase this year and a leveling off next year as new developments are completed.