2018 Chicago Summer Rental Market Snapshot
A strong supply of new rental inventory has flooded the Chicago market in recent years and even more inventory will be added throughout 2018. With more than 9,000 new units added to the mix in 2015-16 alone, this has contributed to decreased/flat rents thus far for the year (a decrease of 6-8% annually YOY). These trends are expected to continue all the way through 2019.
What can landlords do to avoid vacancies in the present market?
- Keep present rents flat or offer a small increase
- List your unit at least 60 days out from current lease expiration date
2018 Chicago Summer Sales Market Snapshot
While the rental market has seen flat or decreased rents based on abundant supply in the market, the sales market has experienced just the opposite. Demand is far exceeding supply by a large percentage in 2018.
Based on Midwest Real Estate Data Service data, month-over-month for January, there was a 17% decrease in sales inventory, ultimately bumping the average sales price of a Chicago property by 10.1%. Demand has continued to surge throughout the spring and summer months and the trend is expected to continue throughout the year.