How to navigate Chicago's busy summer apartment market
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Chicago is already buzzing with fresh graduates and other renters hunting for their perfect, or perfect-enough, place.
Why it matters: The days of pandemic mega-discounts are over. Expect to pay full price for rent, says Noel Kao, Chicago market leader at Smart City, an apartment locating firm.
- "You're going to pay what everyone else is paying. There are no specials," Kao tells Axios.
What's happening: The median rent in Chicago for overall apartments was close to $1,500 in May, up 4.5% over last year, per Apartment List. City rents are nearly 2% higher than the metro-wide median.
- To get ahead and lock in the best deal, people are increasingly browsing two to three months out, Kao says.
- Also, she's seen more clients living with one or two roommates to lower their individual costs, and in some cases, to afford a higher-end unit.
State of play: There's plenty of inventory — apartment construction has boomed in recent years — with Lincoln Park and Lakeview remaining the biggest draws, she says. The West Loop and South Loop have also exploded in popularity.
The big picture: Gen Zers care more about living in their preferred location than the size of their space, says Doug Ressler of real estate research firm Yardi Matrix. Those renters are influencing development in big cities, from smaller floor plans to next-level amenities and conveniences.
- Walkability and easy access to public transportation are top considerations for local renters aside from price, Kao says.
- It's no surprise you'll have to move further from downtown to get more bang for your buck.
Reality check: It's still cheaper to rent than buy in the vast majority of the country. In Chicago, 61% of properties cost less to rent than to own, according to a new Redfin report.
Be smart: While discounts are few and far between, some buildings waive fees for prospective residents who sign quickly.
- Picking a lease that starts or ends in the fall or winter months can also be cheaper.
What we're watching: Rents, which are rising faster than income nationwide.
- The median Chicago household spent more than 26% of their monthly income on rent at the end of 2022, per Moody's Analytics, an economic research firm.