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Downtown luxury apartments hit record high rents

Rents for downtown apartments have been on the rise for nearly seven straight years

As Chicago’s apartment boom continues well into 2016, downtown landlords are making out with big returns on their investments. Thousands of new apartment units are being delivered this year and thousands more are expected to come online throughout the greater downtown area next year as projects in the pipeline move through the proposal, approval, and permitting stages. And while Chicago’s apartment boom is more of a bump compared to other metros, new rental developments have been the biggest driver of new construction in the downtown area. And new numbers from Appraisal Research Counselors show that Class A apartments in the downtown area have hit a new record high of $3.03 this year, Crain’s reports. Occupancy rates have gone up and down by a couple of percentage points over the last few years, but currently stands at 94.8% according to the data.

Will the flood of new apartments cause downtown rents to finally peak or possibly even come down? Crain’s real estate reporter Alby Gallun suggests that if job growth continues at this same pace then downtown landlords shouldn’t be too concerned. When taking into account the new apartments being completed this year through 2018, downtown Chicago can expect to see nearly 13,000 new rental units delivered. With nearly seven straight years of rising rent prices, the only ones who will have to worry are renters and their wallets.