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Downtown Apartment Rents Increase Along with Occupancy
Apartment rents for Class A buildings downtown hit a new high of $3.26 per square foot in the first quarter, Crain’s Chicago Business reported, citing data from Integra Realty Resources (IRR). The Class A occupancy rate increased to 94.3%, up from 93.2% in Q1 2018.
The year-over-year price growth continues a hot streak that downtown landlords have enjoyed in recent years, as the condominium market has cooled in favor of rentals. While rents have increased, though, so has supply: more than 15,000 units have come on line since the start of 2015, Crain’s reported, and thousands more will be added.
However, aside from the South Loop and West Loop, where much of the new supply will be concentrated, supply and demand are expected to remain in balance. Over the next three years, says IRR, demand will average 4,000 units per year, while new supply will average 3,567.
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