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Higher-Income Renters Fuel Chicago’s Apartment Market
The number of Chicago-area renters earning $75,000 or more rose 38.8% between 2010 and 2018, says a national report from the Harvard Joint Center for Housing Studies. Conversely, the number of renter households earning less than $45,000 declined 2.6% during that time period.
The income trend dovetails with the trend in multifamily development. Between 2008 and 2018, developers built 175,000 apartments in the Chicago area that rented for $1,400 per month or more, a 127% increase in supply, the Harvard study shows.
Simultaneously, rising rents contributed to a 10.7% decline in the number of Chicago-area apartments with monthly rents under $1,000.
That being the case, one metric in the Harvard study points to increasing affordability locally. Cost-burdened households—renters who spend 30% or more of their income on housing—represented 47.1% of all Chicago-area renters in 2018, down from 53.3% in 2011 and below the national average of 47.5%.
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