Class A Apartment Rents Tick Up to New High
The average monthly rent for Class A downtown apartment properties reached a new high of $3.18 per square foot as of June 30, according to Integra Realty Resources. That represents a 5.7% increase year over year, while Q2 occupancy for Class A multifamily held steady at 94%.
Crain’s Chicago Business reported that the strong Q2 extended a streak that began nearly nine years ago, as the economy climbed out of the recession. As more Chicagoans favor renting over owning and strong downtown job growth continues, demand is surging, giving owners leverage to boost rents.
For apartment landlords, “It just keeps on going,” said Ron DeVries of IRR’s Chicago office. “It’s the gift that keeps on giving.”
Although this rent growth has been accompanied by thousands of new units coming on line, IRR forecasts that developers will complete just 3,000 apartments downtown in 2018, down from a record 4,348 in 2017.
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