Chicago’s Mid-Market Apartments Reach 20% Rent Increases on New Leases
High Fidelity Property Management analyzed its data from 1,000 apartment units spanning 29 Chicago neighborhoods to see what’s happening in the mid-market, Class B, neighborhood apartment sector, specifically the North and West Side neighborhoods of Logan Square, West Town, Bucktown, Wicker Park and Pilsen. With average monthly rents ranging from $1,175 for a studio to $2,690 for a four-bedroom, new leases have averaged 17.51% rent growth since January 2022.
“During the pandemic investors were battered with vacancies, delinquencies, and reduced rental rates,” said High Fidelity owner John McGeown. “Our objectives have been to minimize leasing commissions and turnover costs while increasing rents whenever possible.
“Part that strategy was keeping an open dialogue with our residents and negotiating terms well in advance of lease expirations,” he continued. “When we weren’t able to renew residents, we’d market apartments at 20% increases year-over-year, and we’ve hit that number 90% of the time.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).