Chicago-area rents rise while occupancy stays steady

Higher rents in the Chicago area and a boom in apartment-building construction didnt dent occupancy rates during the third quarter.

The average monthly rent, after move-in specials, for an apartment in the Chicago area during the three months ended in September was $1,110, up 1 percent from the second quarter, according to Reis Inc., a real estate research firm. Year over year, local rents rose 3.7 percent

The quarterly vacancy rate of 3.5 percent was unchanged from the previous quarter that ended in June and relatively flat from a year ago.

Nationally, the vacancy rate rose for the first time in 4 years, to 4.2 percent, up 0.1 percent, and largely caused by the jump in construction.

During the quarter, some 46,055 units were delivered to markets across the country, the second-highest quarterly number since 2002s fourth quarter. Year-to-date, more than 113,000 units have been constructed.

New construction continues to increase over time and will likely reach a post-recession high this year, Ryan Severino, Reis senior economist, wrote in the report. Meanwhile, demand has clearly declined from levels observed during 2010 and 2011. This type of slowing is expected, but demand should remain robust.

Despite the uptick in Chicago-area rents, the local market remains a bargain compared with many cities. For instance, average monthly rents were $3,185 in New York, $2,173 in San Francisco, $1,870 in Boston and $1,484 in Los Angeles.

Looking for something a little less expensive? Head to Oklahoma City or Wichita, Kan., where average third-quarter rents were $588 and $543, respectively.

mepodmolik@tribune.com Twitter @mepodmolik

Originally posted here:
Chicago-area rents rise while occupancy stays steady