Not looking to buy a condo? Here's some apartments for rent in Chicago - look around!
The Chicago real estate market has seen a lot of growth in the last few years. New condominium and loft developments transformed neighborhoods throughout the city, including the Near South Side, Near North Side, and areas west of downtown.
However, in the past few months the news has not been as good for developers and condo owners looking to sell a condo in the city.
Some neighborhoods that have seen heavy development in recent years have experienced a sharp decline in sales. The Near South Side saw a 40 percent decline during the second quarter.
An increase in foreclosures around the city has led many banks and lenders to scale back their loans and tighten requirements for new applicants. The number of foreclosures in Chicago increased 12.5 percent during August, according to RealtyTrac, Inc.
Tougher requirements from banks have taken many potential buyers out of the market, forcing them to rent an apartment. According to the Chicago Association of Realtors, total sales of condos declined 5 percent during the second quarter of this year.
Higher prices are also forcing many people to look for a rental in many neighborhoods. The average sales price for a condo in Chicago doubled in just six years to $224,562.
The increase in demand for rental units around Chicago is driving up prices and bringing down vacancy rates.
According to a report from Appraisal Research Counselors, the average rent for both Class A and Class B apartments has increased around the city.
The average rent per square foot for a Class A apartment rose 4 cents during the last quarter, a 1.8 percent increase.
Vacancy rates are also declining around the city. According to the report, the vacancy rate for Class A apartments stood at 4.6 percent during the second quarter of this year, a 2 percent decrease over the previous quarter.
Class B vacancies stood at 5.4 percent, a 0.4 percent decline from the first quarter.
Developers who are feeling the effects of a decline in demand for condominium units are focusing on rentals during this difficult period in the real estate market.
There are several new apartment buildings offering Class A rentals around downtown Chicago and in popular neighborhoods throughout the city.
One of the most recent announcements for the South Loop is for a 1,000 unit apartment tower that will be destined for rental units. The development is led by Alexandria, VA-based AvalonBay Communities, Inc.
Another major apartment development that is leading the trend towards rental units in Chicago is Kingsbury Plaza.
Kingsbury Plaza is a Habitat Company development located at 520 North Kingsbury in the heart of River North.
The development caters to professionals who want to live close to downtown Chicago in a luxury apartment.
Kingsbury Plaza offers smaller units ranging from studios to two bedroom apartments. The building comes with a large variety of amenities, including an outdoor pool, party room, modern fitness center, and access to the East Bank Club.
Rates for apartments at the Kingsbury Plaza start at $1,200 per month for a studio, and range up to as much as $3,034 per month for a two-bedroom apartment.