CHICAGO – Renters in Chicago are feeling the pinch as new data shows rent prices are rising across the city.
According to a national report by rental platform Zumper, Chicago is now the eleventh most expensive city in the United States.
Crystal Chen, a spokeswoman for Zumper, highlighted the significant price increases, noting that annual rent for one-bedroom apartments in Chicago has increased by nearly 18%, making the city the third-largest in the country.
“One-bedroom apartments currently cost $2,270, up over 17 percent from last year, and two-bedroom apartments cost $2,700, up about 13 percent from last year,” Chen said. She attributed the increase in part to a lower vacancy rate and a limited number of new rental apartments on the market.
“Over the last five years, Chicago’s rental supply has increased by about five to five and a half percent. The national average is about 10 percent,” Chen explained. “Also, the largest increase in inventory has been in the Loop, where there are a lot of luxury buildings, and that could also be contributing to the high rents.”
Another factor driving more people into the rental market is the high interest rates and mortgage rates that deter potential homebuyers from purchasing a home.
“This is probably discouraging a lot of people from buying, so more renters are coming into the market, which in turn is driving competition and demand,” Chen said.
Donna Rasmussen of the Northern Illinois Consumer Services said many people in the Chicago area are struggling with rising rents.
“Many younger families who might have bought a home before the rate hike are now waiting for rates to fall,” Rasmussen said. “They are buying apartments and rental properties that would normally be affordable for others.”
Rasmussen’s organization has been busy offering help to those in need over the past few months.
“We host a weekly Community Resource Day. The number of people and the demographics of people coming to this homelessness prevention event has increased dramatically,” she said. “1,300 people have been helped, and 230 of them were new to the program this year.”
So how can you find affordable housing with rents rising? Rasmussen suggests starting by taking a close look at your monthly expenses.
“Keep an eye on your checkbook. Look at your bank statement when you get it,” she advised. “I can tell you that we often find people using six streaming services.”
Another way to save money is to consider moving in the winter, when fewer people are looking for new rental properties.
“Winter is definitely the best time to move because owners usually like to lower rental prices over the holidays,” Chen said.
You may also be able to save money by asking the property management about move-in specials.
“Having a few special offers to look at and rent can lower your move-in price by at least a few hundred dollars,” Chen said. “And asking the landlord to sign a longer lease just to lock in a price can also set you apart from the competition.”
Rasmussen stressed the importance of getting your finances in order before deciding on a new location.
“Think carefully about what you can afford if you want to move,” she said. “If you’re not sure what you can afford, don’t improvise. Find someone who can help you.”
The experts’ conclusion: If you find an apartment you like and have the right price, you should move quickly. Competition is expected to remain high at least until the fall of this year, and that also applies to the higher rental prices.
