For weeks, many involved in Chicago real estate have been talking about the cost of renting downtown skyrocketing to levels not seen since 2007. Now that trend is hitting the suburbs, too, proof that itâ€™s increasingly becoming a buyerâ€™s real estate market.
According to numbers released by Crainâ€™sÂ today, suburban landlords are benefiting from increased apartment demand as well as the ability to raise rents toÂ exorbitantÂ rates. As a part of this trend, landlords look like theyâ€™re not offering many concessions as they used to, like one-month free. The numbers donâ€™t lie; in the first quarter of 2011, 43.8% of landlords offered incentives to rent from them, representing a 7.8% drop from Q4 2010.
As for the cost of renting? On average, suburban renters are now paying $1.16 per square foot, an increase of 1% since the prior quarter and a whopping 5.5% compared to last year at this time. Even as these prices continue to go upâ€“and analysts donâ€™t expect this trend of raising apartment rents to slow anytime soonâ€“apartment occupancy rates are on the increase too. 93.6% of all apartments in the suburbs are now occupied as compared to 92.9% in Q4 2010 and 92.7% a year ago. While thatâ€™s not much of an increase, it does signify that apartment renters think that renting makes more sense, despite the numbers saying otherwise.
The perks of apartment living are becoming harder and harder to see. While lending standards might be tighter than before, there are perks and incentives to buying a new home now. Prices for new homes and condominimums havenâ€™t been this low in years. And while landlords are forgoing incentives, online real estate brokerages like CondoDomain are not. When any buyer finds a listing through CondoDomain and buys through them, they receive cash back. Thatâ€™s real money that can be saved or used for anything like furniture.
SearchÂ CondoDomainÂ for home listings in any of Chicagoâ€™s suburbs, and, chances are, youâ€™ll find a deal thatâ€™s worth looking into in your target area.
The average cost of renting now is $1.16/square foot. Yet, for that price, you can own your home, such as the one pictured here.