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After declining by as much as 20% in Chicago and other urban
metros at the height of the pandemic, rent prices began to soar.
Jon Leckie, researcher for the website Rent.com, said the real
estate market contributed to the rising prices for apartments.
“If you have a red hot housing market, it is going to put a lot
of pressure on rents as well,” Leckie said.
Some are also blaming a rental algorithm called YieldStar that
takes the human element out of housing and hikes prices on
behalf of landlords. Created by Texas-based property management
software company RealPage, YieldStar is an analytics algorithm
that uses rental rate data to help landlords set rental prices.
But
Leckie said prices for apartments in Illinois started to go in
the other direction last month.
“The city of Chicago was down about 6%, and the state of
Illinois was down a little over 4.5%,” Leckie said.
Industry analysts say we are seeing a complete reversal of
market conditions, going from demand significantly outstripping
available units to now new units outpacing lackluster demand.
Prices around the state are still up from last year. In Joliet,
a 1-bedroom apartment is going for about $1,000, up 13% from
last year. In Schaumburg, the price is around $1,500, up 14%,
and in St. Charles, a 1-bedroom apartment averages around
$1,900, a 13% increase over last year.
In Chicago, it is a different story. A 1-bedroom apartment
averages $1,859 a month, down 4% from last year, while a
2-bedroom apartment goes for about $2,263, down 16% from last
year.
Renters in the Windy City can compare that to The Big Apple. A
1-bedroom apartment in New York City currently averages $4,477 a
month.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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