Over the last four years we have watched rents in the city soar anywhere from 5-15% annually. This has displaced many renters forcing them to downsize, relocate further out, or go back to rooming up. It has hurt some would-be buyers that planned to save the extra dough for their first purchase. At the same time it has pushed other renters over the fence, out of the shackles of renting, and into home ownership.
With all the shiny new supply it comes as a relief that the numbers are finally showing calmer waters. From last quarter to now, rents rose only .3%, the lowest increase in the metro areas studied. One consideration is the time of the year as renting is undoubtedly seasonal. We can still expect rents to increase but at a more palatable rate then previous seasons.
We know markets are based on supply and demand. With increased supply landlords aren't able to demand as much as when they had a stronghold in the marketplace. At the same time, despite a culture of millennial renters the tables are turning as more and more renters opt to throw in a towel and buy, depleting rental demand a bit. At Access Chicago Realty we have experienced this first hand with a huge influx of first time buyers this year, almost all of which are millennials. Predictions across the country are that this will be the first year more millennials over any other generation score real estate.
Other studies by Zumper show that Chicago is now the 7th most expensive city in the country to rent in. If you are not sure where your life will take you in the next few years renting is a safe and convenient bet. If you plan to stick around and maybe put down some roots what are you waiting for? Early bird gets the worm.