Downtown Apartment Occupancies Reach New Low
The downtown occupancy rate for Chicago apartments fell to 87.1% in the third quarter, down from 93.8% a year earlier, according to the Chicago office of Integra Realty Resources. Crain’s Chicago Business reported that the rate has never been that low in the 22 years since IRR executives began tracking the downtown market.
“Some [landlords] are saying they can’t remember it ever being this bad,” Ron DeVries, IRR senior managing director, told Crain’s. Factors including the COVID-19 pandemic and civil unrest have reduced the appeal of downtown living, Crain’s reported.
In the suburbs, it’s a different story. Suburban apartment occupancies rose to 95.3% in Q3, up from 95.1% in Q2 and 95.0% percent a year ago, according to Integra. The median net suburban rent was $1.53 per square foot in Q3, versus $1.54 in Q2 and $1.48 a year earlier.
“It’s like no market event has happened there,” DeVries said.
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