Britta Rivera Venture

CHICAGO REAL ESTATE NEWS & MORE

CHICAGO RENTAL BUILDING SALES ON THE RISE; HOW LONG WILL THIS LAST?

CRAIN’S published a great article on apartment building sales in Chicago during 2011.  It may be a record year for transactions, which is not surprising.   Many owners who have lost their homes in short sales or foreclosures have re-entered the rental market again.   In this challenging housing market, rentals have become a popular alternative for many even though rents continue to climb.

During 2011 the rental rates are expected to increase approximately 10% in Chicago, which is good news for landlords but bad news for renters.  The demand for rental housing is making rental properties an attractive purchase.  Investor’s have resurfaced and new construction rental buildings are also on the rise.

But how long will this last?  Is this a start of a rental housing bubble, similar to the “for sale” crash of 2007.   It will be interesting to see just how many people continue to hold off buying a home and pouring money into a rental property.  Once their credit is repaired or they overcome the fear of securing a home, will they shift to homeownership again?   If so, will this cause a rental crash? 

In most cases the rent vs. own scenario is alarming, Chicago tops the list for cities where it’s cheaper to own than to rent.  Let’s hope the American Dream of owning a home to offer a “nest egg” emerges once again.  While renting a home may be necessary for some at this point, it would be great to see it convert back to home ownership.  Interest rates are extremely low and housing prices are more affordable than ever…making it a perfect combination.

If you are interested in seeing just how much you can buy in Chicago for your money, visit http://brittarivera.koenigstrey.com/.

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December 13, 2011 - Posted by | CHICAGO REAL ESTATE | , , , , , ,

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