Rental apartments and condos in Chicago are booming.
And for some renters, that’s not all that different from what you would expect.
But some of the city’s top real estate experts say some renters may be getting hit harder than others by a citywide increase in the vacancy rate.
That’s the finding from an independent study by a real estate consulting firm, the Institute for Research on Real Estate (IRRE).
The study, titled “Tenant Vacancy Rate and Housing Demand Trends in Chicago,” found that rents in the city jumped more than 20% from a year earlier in June.
The rate of increase was 7.7% in June, up from 6.3% a year ago.
That rate of growth is well above the national rate of 6.1%.
The increase was even more dramatic in some of Chicago’s most expensive areas, such as Midway, the Loop, and Downtown.
In addition to a sharp rise in rents, the city also saw a 6.7 percent increase in home-value-adjusted rents over the last year, an increase that’s the second-highest in the nation.
Renters in the priciest areas of Chicago, such to the Loop and South Shore, saw a 4.7 percentage point increase, while those in Midway saw a 3.7 point jump.
And rents in more expensive neighborhoods such as South Side neighborhoods, the South Loop and Wicker Park saw an increase of 4.6 percentage points, to a rate of 1.6% higher than last year.
Some renters in the Loop were getting hit hardest.
The average rent in the most expensive neighborhood, Midway at $1,200 per month, is $2,817, or more than $20,000 more than in June 2016, the year before.
Rents in Midland, meanwhile, are still significantly higher than the rest of the Chicago market.
The median rent for a one-bedroom apartment in the North Side neighborhood is $1.3 million, a 1,500% increase from the year ago, according to IRRE.
And in Wicker Ball Park, where rents are still rising, the average rent for one-bedrooms in the neighborhood is more than double the national average of $1 of $600, the study found.
The study also found that the city is experiencing more home-ownership than in years past.
A year ago the city had 7.5% fewer people living in their homes as of the end of last year than in 2016, according the report.
Now, it has 9.3%, the report said.
The Chicago Real Estate Board (CREB) and Chicago Housing Finance Authority (CHFA) have been working to try to help the city stabilize its housing market.CREB’s director of policy and analysis, Richard Glynn, told CBS Chicago the report showed that renters are facing a real and persistent challenge.
“There’s a disconnect in the way renters are getting affordable housing,” Glynn said.
“We are seeing a large amount of homeownership in this city.”
The CREB and CHFA have been calling for a variety of measures to help lower rents in Chicago.
One idea is to allow tenants to make more flexible payments, allowing them to pay more when they need more.
The CREB also says that it’s working on a plan to make it easier for renters to buy a home in the Chicago area.
Another plan would allow renters to rent out their homes to other tenants.
But the CREB says it is still working on that.
Glynn says it’s important that people have a fair shot to buy their own home, but that’s just not the case right now.
“If you don’t have equity in your home, then you have to go to the market,” he said.
“It’s not that the market doesn’t give you the opportunity to buy your home.
It’s that the current housing system doesn’t.”