Be sure to raise your rents in 2024!

[Henry Lazerow]

Chicago landlords be sure to raise your rents in 2024 spring season. You will be surprised how high they are going. Redfin showed 2.35% month over month Jan to feb and feb to march data is not released yet. We have actually had multiple offers on a few of our rentals with one going $200 over list and that was listed $700 over 3 years ago. Not sure if higher purchase prices/rates have created this boom or if it's that all the new supply of rentals in Chicago is aimed at top end luxury *$3000 1br type builds etc. but rents have shot up on the north side. I have seen similar in some suburbs such as Waukegan, there apartment rentals are going for the price entire single family rentals went at few years ago. In rogers park 1br rentals are going for the price 2br rentals used to go at. I believe the biggest issue is it's not profitable for developers to build medium tier priced rentals so instead they are focused on the high end which gets the highest rents per a sq ft, I do not see the rental supply side changing. 

I am having all my buyer clients really dig into their numbers as many deals don't look good with MLS listed rents but if look at actual recent comps you can get some cashflow after cosmetic updates.

[John Warren]

@Henry Lazerow I can confirm. We are getting about a 10% increase on new listings in both suburban markets like Berwyn and also our city rentals in Albany Park or Irving Park. The most recent listings caught me by surprise on the north side as we had multiple offers and tons of competition.