Chicago & Midwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Downtown Chicago Apartment Rent Growth Slows Yet Renter Demand Stays Strong
Rent growth for Class A apartments in downtown Chicago has moderated of late, reported Crain’s Chicago Business, citing data from the Chicago office of Integra Realty Resources (IRR). Net rent for top-tier properties moderated to $3.56 per square foot, up 8.5% year-over-year but down from $3.64 in the second quarter.
“The market has been on fire,” said Ron DeVries, senior managing director in Integra’s Chicago office. “It’s still on fire, but it’s definitely slowing down.”
However, at Wednesday’s Preview 2023 event hosted by the Chicagoland Apartment Association, DeVries made it clear that renter demand remains strong, both downtown and in the suburbs. “With monthly mortgage payments rising over 50% because of soaring interest rates, we are seeing more and more renters stay in their leases instead of buying,” he said. “October home closings are down 35% year-over-year, so renters are facing diminishing options for apartments.”
- ◦Lease
