Markets & EconomyRentals

Chicago rental market rise fueled by job growth, report says

HomeUnion reports health of housing and rental markets in Chicago based on employment and economics
  • Chicago rental vacancy rate forecasted to reach 3.9 percent by the end of 2016.
  • Relocation of major corporations to Chicago is helping to add jobs and fuel demand for new homes.
  • Chicago remains a strong market for investors with a strong cap rate.

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It may have taken a while, but the Chicago rental market is slowly pulling itself out of the recession. HomeUnion recently released a second quarter report on the city's current and future economic and real estate health, and things are looking up in the Windy City. The improving job market and relocation of several large corporations to downtown is helping fuel the demand for apartments and driving down vacancy in Chicago, the report says. By the end of 2016, vacancy is expected to fall 10 basis points from last year to 3.9 percent, while rents continue to climb.   Rents have increased steadily while vacancy has remained fairly flat; rents are expected to climb 4.6 percent to an average $1,972 per month. The growth of the rental market is largely saturated in downtown neighborhoods like River North and The Loop, but future growth is expected to spread outside of the city's urban core. According to the report, investors in the first quarter of 2016 were...