- New multifamily projects downtown have amenities and in-unit finishes that meet or exceed condo developments.
- Rental tower is offering $500 concessions.
- Chicago condo values are up on a year-over-year basis.
Chicago’s skyline is changing, and more people are getting the opportunity to live high above the streetline.
Part of the larger mixed-use development NEWCITY, the 199-unit Residences at NEWCITY is leasing studios and convertible one bedrooms starting at nearly $1,900, with true one bedrooms in the high $2,300 range. The property, which is currently 40 percent occupied, is also offering tenants a $500 sign-up bonus following application and administrative fees, according to its leasing office.
According to Rent Jungle, the average rent for a one-bedroom in Near North Side was $2,559 in October.
NEWCITY’s high-end interior finishes, outdoor balconies and community amenities sound like things you’d expect from a new condo development. However, these features are no surprise considering the competition the project is likely to receive this year. The development also just received LEED Gold certification.
Downtown’s rising multifamily vacancy rate also means developments must stand out in order to attract tenants. According to CoStar, the volume of multifamily expected to come online in downtown Chicago during 2016 will total roughly 3,000 units.
While multifamily vacancies are increasing, the median price of condos and the volume of condos sales have recently been on the rise. According to the Illinois Association of Realtors, the median sales price of a condo in the city of Chicago was $285,000 during November. This price equates to a 3.6 percent year-over-year rise. At the same time, the 925 condos sold in November represented a 1.2 percent year-over-year bump.
The rise in the median value of condos was attributed to a 16 percent year-over-year drop in supply.