Chicagoans have been battling rising costs of living for some time now. However, a new report by Rent., a Redfin-owned company, indicates a slight decrease in rental prices in the metropolitan area. Referencing the Chicago Sun-Times, rental prices month-over-month have dipped approximately by 1% from August to September. The year-over-year figure also marked a nearly 2% decline.
While the decline in rental pricing signifies a momentary relief, living costs in Chicago remain high causing residents to relocate due to surging rents. Galewood resident, Ashley Golf's rent hiked by 26% over the past three years. This was highlighted in a report by ABC7 Chicago. Notably, neighborhoods such as Lincoln Park, Wrigleyville, and Buena Park have witnessed a disparity in rent increases even as wages lag behind.
The area of Chicago has been lucky to, avoid larger increases seen in other parts of the US like New York City, where the median rental price is $4,449 and Los Angeles, standing at $3,575. This is according to Jon Leckie, a researcher at Rent. As per the Chicago Sun-Times report, Chicago's rental prices swelled by 17% last summer before embarking on a slight downward trend.
Nationally, the median rent price dropped around 2% in September, marking the first decline in six months. However, prices are still marginally higher compared to the same period last year. This drop is attributed to a decrease in tenant demand and an influx of new building developments.
Jason Wagner, of the Neighborhood Building Owners Alliance’s issues and policy group in Chicago, states continued increases in rent prices within the city limits. However, the growth rate has slowed to around 3.5%, as opposed to the standard annual growth of 1-2%. This is perceived to be an effect of the rental boom that occurred during the COVID-19 pandemic.
Tenant pressures continue as corporate entities are purchasing rentals and driving prices upward. This observation, made by John Bartlett, Executive Director of the Metropolitan Tenants Organization, leads him to suggest more inclusive rental policies such as rent control to address these concerns.
