Our city’s rental markets have performed quite well in recent years, and 2014 seems to be no exception.
The average rent in Chicagoland in 2014’s third quarter was $1,110, a 1 percent increase from the second quarter and a 3.7 percent increase over the last 12 months, according to the latest rental information from Reis; also, the vacancy rate in Chicagoland remained quite low at just 3.5 percent.
Nationally, Reis’ findings continued to reinforce the current real estate recovery as one driven by rental properties, not homeownership. Though the vacancy rate did rise 10 basis points to 4.2 percent (the first such increase in nearly five years), asking and effective rents rose 3.2 and 3.4 percent, respectively, and both reached record-high nominal levels.
Additionally, 46,055 new rental units hit the market in 2014’s third quarter, the second-highest level of construction in nearly 12 years. Year to date, 113,024 units have been delivered, an incredible 32.3 percent increase over the same period in 2013; as we’ve repeatedly reported, new construction is recovering, but it’s being led by the multifamily rental sector.
Interested in how Chicagoland’s rental numbers compare with the rest of the nation? Check out our infographic below: