Britta Rivera Venture

CHICAGO REAL ESTATE NEWS & MORE

CHICAGO RENTS CONTINUE TO RISE, WHY NOT BUY?

Chicago area rents have continued to climb during the past year.  While many renters scramble to find the “perfect” rental in the city, they often find themselves out of luck for two reasons.  The first reason is the huge increase in rental rates at A+ buildings, many renters just cannot afford to pay the high premiums.  The second reason is apartments in the city are being rented faster than ever before.

Renters in search of a home have found themselves losing out to the highest bidder, and find the lack of inventory astounding.  If you want a two bedroom in the downtown market for under $2000 per month, good luck!  And if you happen to find one, you better act quickly or it will be gone.  Many renters are also staying put, so there is slim pickings and getting tighter by the day.  It is not unheard of for a rental to go on the market on a Monday, and be gone by Friday.

One more important thing to note; the requirements for renters are becoming almost as strict as getting a loan.  Have a pet? Expect to cut the available units in half, or get ready to put down a $500 pet deposit, if lucky enough to find an apartment allowing pets.  Have mediocre credit?  It may put you to the back of the line, and yes…multiple offers is common.

But this all raises the question…why are so many paying exuberant rents when they can own for far less in many scenarios?  Well, the fear put into them about the continued decline in pricing is probably the source, but in reality does this make sense?  If the general public would go back to the original tradition of the “American Dream”; essentially owning a home and stop worrying about the home values, maybe they would think differently.  While it is also a fact, many have declining credit scores and are fearful of getting a loan, there are still FHA loans available and believe it or not, banks are still offering conventional loans.

According to Crain’s and Appraisal Research, rents at downtown buildings are already well above the highs of the last boom and are likely to continue to rise.  Class-A  properties have already seen a 9.5% increase from a year ago.  Will this now create a “rental bubble?”

In the coming years, will renters realize the point of owning a home was to invest for the long-term instead of feeding thousands into a landlords pocket?

How long will renters continue to dump money into a bottomless hole?  Well, since this type of depressed housing market has not been experienced in the history of reporting, only time will tell.  Let’s just hope the incredible “once in a lifetime” deals are scooped up by the buyers thinking about their future.  In my opinion, it still really is a great time to buy, no matter what we are all being told.

READ FULL STORY  IN CRAIN’S

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August 15, 2011 - Posted by | CHICAGO REAL ESTATE | , , , , , , , , , , ,

2 Comments »

  1. […] 2011: CHICAGO RENTS CONTINUE TO RISE, WHY NOT BUY? (via Britta Rivera Venture) 15 Aug Chicago area rents have continued to climb during the past year.  While many renters scramble to find the "perfect" rental in the city, they often find themselves out of luck for two reasons.  The first reason is the huge increase in rental rates at A+ buildings, many renters just cannot afford to pay the high premiums.  The second reason is apartments in the city are being rented faster than ever before. Renters in search of a home have found th … Read More […]

    Pingback by 2011: CHICAGO RENTS CONTINUE TO RISE, WHY NOT BUY? (via Britta Rivera Venture) « Brittaj17's Blog | August 15, 2011 | Reply

  2. […] It is impossible to believe that anyone with semi-decent credit, steady employment and a minimal down payment would not apply for a FHA loan and secure a home now.  Renters still hanging on in this market would have to be those who are just not in the position to buy a home.  In the end, it is still better to own a home than to pay rent to a landlord. […]

    Pingback by CHICAGO 2011: 25% OF HOMEOWNERS “UNDER WATER”; BUYERS MARKET STILL IN PLAY « Britta Rivera Venture | September 13, 2011 | Reply


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