Interest in renting a home has increased dramatically and brokers need to be up to date on prices and availabilities of properties near them. RentJuice.com has a database of more than 15,000 rental properties in the Chicago land area and has found important details in the marketplace.
From their index, which tracks 34 Chicago neighborhoods and suburbs, RentJuice.com shows that the demand for rentals has increased while supply has stayed the same, causing a mismatch supply and demand curve. However, RentJuice.com chief executive David Vivero predicts that soon more homeowners will convert their properties into rentals and there will be an increase to the supply of rentals in the area.
According to RentJuice.com, the average cost for these renters in Chicago in the second quarter was $1,410. The average price around the area for a studio was $937; for a one-bedroom, $1,236; and a two-bedroom, $1,736. The average rental price for the most expensive neighborhoods were all around $1,900 a month and in the West Loop, almost $2,000 a month.
Since the demand is so much higher than supply, across all neighborhoods there was an average increase in the price of rentals by 0.71 percent quarter-over-quarter. Rent went up in the Loop by 1.9 percent and in Printers Row and the South Loop there was an increase of 3.31 percent.
However, prices have decreased a little in some areas. In Wicker Park there was a quarterly price decline of about 2.8 percent, in Humboldt Park the price declined 4.5 percent, and in Evanston there was a 2 percent decline.
But the market right now is a “buyers market” as some say, so why does everyone want to rent? People are simply uncertain about jobs and where they will be living long term. This leads them to stay in rental housing longer than in years past. Home-ownership is becoming less attractive to consumers and we see this shift all across the country.
According to the Chicago Tribune, home-ownership is the lowest its ever been since 1965. The Census Bureau reported that the percentage of people who owned a home had dropped to 65.9 percent during the second quarter.