Chicago rents are softer for the rich
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In the Chicago metro, rent was up for mid- and higher-end apartments at the end of 2023, according to real estate firm CoStar Group, which rates buildings based on design, amenities, location and certifications.
Why it matters: Many Chicagoans are unlikely to catch a break on rent this year.
The big picture: Demand for more affordable apartments is helping to keep middle-of-the-road rent prices elevated, Jay Lybik, CoStar's national director of multifamily analytics, tells Axios.
- U.S. rents are generally still above pre-pandemic levels, analysts say.
Yes, but: A flood of new construction is pushing down U.S. rents at the high end, where there are often more apartments than renters who want them.
- That means the renters with the deepest pockets are more likely than others to score a deal.
State of play: While the country needs more housing, most new apartments are loaded with amenities in prime locations.
- Some of Chicago's recently built high-rises offer music and craft rooms, saunas and indoor lap pools.
Of note: The prices you see in the headlines are asking rents, meaning new leases only.
- Rents usually don't come down for those who aren't moving, Axios' Emily Peck reports.
Go deeper: Housing was wildly unaffordable for half of renters in 2022, report shows