Current rental market in Chicago?

Question

What is the current demand for tenants in Chicago?  When I marketed and rented an apartment 8 months ago, I found it more difficult to find qualified tenants, and ended up dropping rent 10-15%.  Location is Wicker Park.  At that time, unemployment was quite high, reducing available tenant pool and reducing demand.   What is demand and rent level like compared to 6 months ago and 2-years ago?

John Warren · Answer

@Mike Nelson I have to say that rental demand has been weaker this year than last year. I am still getting plenty of interest, but the tenant quality feels less desirable in general than last year. I spoke to my lender about this and he mentioned that a lot of qualified renters are probably trying to get into a home right now which could be a big part of the issue. Hopefully you get the quality of tenant you want!

Jonathan Klemm · Answer

@Mike Nelson - Rental market in general is definitely quite a bit softer.  I ended up turning one of my units into an AirBnB during the pandemic because I couldn't rent it out even after dropping rent $200.

I still think if you have a nice product in a nicer area like Wicker Park you should be able to get it rented....really timing is everything and sometimes you are luckier than others.

Brie Schmidt · Answer

I had lease ups in July and November last year and it was difficult to find tenants and I had to drop rents.  I have 3 up for June 1 this year, I listed rents $50-$150 more than I currently get in rents.  2 of the 3 I had rented out after the first day of showings (about 8 showings back to back on each) and the second one I got rented on the second set of showings (8 the first day, 2 the second day)

Marco Morales · Answer

The lease was up in one of my Pilsen rentals this summer. I increased the rent by $200/month and I received 4 strong applicants within 2 weeks of showings and leased 2 months prior to the lease being up. I think if it was a year earlier it would have been a very different story. It seems like there's a lot of people coming from South Loop and University village looking for more space at a better price, but still want to be in the city. I do think there will be an uptick in demand as things open up more and companies start pulling people back into the office.

Kyle D Birch · Answer

I have 7 rentals on the south side in the Beverly Morgan park area. I just rented my 1 br for $1175 a month and 3 br for $1650 a month. I was worried their may be less interest because I usually draw commuters who take the metra down town, but I had no issues. I thought the work from home movement may have hurt, but I haven’t seen a difference. Both rented within the first 5 showings.

Regina Lemons · Answer

I have 4 single family homes between Peru and Peoria. I am considering selling while real estate prices are higher. I have long term renters. I owe under $25,000 on all 4, which leads to my question. I know I will always be "tied" to my area but would like to relocate within 3 years. Should I BRRR them since I do have long term renters or take my money and run? Keep in mind that I run these properties without support from a husband who never wanted to be a landlord yet enjoys the profits. If I sold, I could reinvest where I want to live BUT I could do the same with BRRR. My goals are to buy more rentals out of Illinois but have a hard time committing to selling off my passive income now. I would have support from my local construction contacts here if I kept them. What would you do?

Mike Nelson · Answer

Thank you, my tenants, or prospective tenants,  typically would not consider buying as an option, because of budget.  However, if "more affluent" tenants in my market are buying, it makes it a little more challenging for me.  The CTA trains are much emptier than they were pre-pandemic.  That said, things are starting to look better.

Current rental market in Chicago?

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