Chicago Rent and Vacancy Report: Softening Conditions in the Chicago Rental Market

By DePaul University Institute for Housing Studies
 
The weakened local economy has significantly affected the rental apartment market. Since the second half of 2007, overall vacancy rates in the city of Chicago have increased from 5% to 5.7% in 2008, and to 6.2% in the second quarter of 2009.

Low-income rental markets have been among those in the city of Chicago hardest hit by the downturn. Vacancy rates in these markets have increased from 6.5% in 2007 to 8.2% in the second quarter of 2009.

Rental markets in the North submarket have been quite resilient. These markets (which include Uptown and Rogers Park) have actually experienced a slight decrease in vacancies from 4.9% in 2008 to 4.6% in the first quarter of this year, and to 3.9% in the second quarter. (Submarket map is shown on page 4.)

Rental markets in the South and West submarkets have recorded an increase in vacancies from 6.8% in 2007 to 7.3% in 2008, to 7.9% in the first quarter of 2009, and to 8.6% in the second quarter, on average.

We expect continued weakness in the local rental apartment market in view of the struggling economy and poor job market.
 
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