Chicago renters face bidding wars for apartments
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Chicago renters are facing bidding wars — competing for apartments the way homebuyers do.
Why it matters: Chicago renters are paying roughly $100 more per month than a year ago, pushing many out of neighborhoods they could once afford.
Case in point: Arseny Semina and her roommate have been looking for a two-bedroom in Northwest Side neighborhoods, including Humboldt Park, Avondale, Logan Square, Albany Park and Irving Park, with a budget of around $2,100.
- Showings in Avondale and Logan regularly have lines of 20 or more potential renters, Semina tells Axios, and one apartment application asked applicants how much they were willing to spend: "Rent Offer - i.e., $1,995 or higher," the form listed.
- A potential renter from out of town asked Semina if offering more than was listed was the norm, and Semina told her, basically, "It is now."
State of play: Bidding wars are not illegal in Illinois or Chicago and Semina understands that it's driven by demand — inventory is low.
- Illinois faces a housing shortage of about 140,000 housing units, Gov. JB Pritzker's office reports.
- Developers are seeking to build in other states, Bloomberg reported, because of high construction costs in Illinois.
What we're watching: Pritzker has said that building restrictions in the state are too burdensome, and many of those three- and four-flat buildings that once included affordable rentals have been torn down to make way for single-family homes.
- The governor has proposed incentives for developers to build more multi-unit residential neighborhoods.
Yes, but: Those proposals still need to go through the General Assembly.
Zoom in: It's not just new renters; increases also affect tenants. While Illinois law says landlords cannot raise rent within the term of a lease, they can raise it year after year.
- But there could be room for negotiation. In 2022, Jessica Wrubel signed a lease for a studio with a den in Lakeview for $1,140. The following year, the landlords raised it to $1,300.
- "My grandmother always taught me to write a letter if I was upset with something, so that's what I do," Wrubel tells Axios.
- She countered with $1,200, and the landlord agreed to $1,240. She negotiated again in 2024, persuading the landlord to reduce the amount by $30 from what they had proposed.
Context: The negotiation has favored both Wrubel and the landlord, as she's been a reliable renter for four years in a building with high turnover.
- "I still think I get a great deal considering that my kitchen and bathroom are renovated and I live in a charming little courtyard building in one of the best locations in the city," Wrubel says. "I love my little apartment, but it's been a little bit of finagling on my part to keep the rent lower."
Zoom out: While Chicago's average one-bedroom hovers over $2,000, it's still cheaper than other major cities.
- Chicago doesn't even rank in the top 10 in Zumper's March rental averages. New York comes in at about $4,300, while Boston is about $3,000.
What you can do: The Metropolitan Tenants Organization has a hotline for tenants — and landlords — to learn their rights.
In the meantime, Semina still hasn't signed a lease for a new apartment and feels backed against the wall, she says.
- She didn't get the apartment that asked how much over $1,995 she was willing to spend.
- "I would prefer it if the places just listed the place for the most they thought they could get for it. And at least then I would be like, 'Okay, well I'll just not look at that place.'"