Luxury Apartment Buildings are the Future of Chicago
Construction of luxury apartment buildings is on the rise in Chicago and there is no sign of it slowing down. There may be as many as 8,700 new apartments downtown by 2016 and there are approximately 28,000 downtown today. This means that Chicago will possibly have 30% more apartments in the downtown area in just a couple years!
Not only that, monthly rents are 34 percent higher in Class A Buildings from 2009 according to Appraisal Research Counselors (ARC). The rental occupancy rate second quarter 2014 for Class A Buildings was over 95 percent! There is a huge demand for luxury apartment buildings with diverse amenities so builders are taking note.
Renting continues to become more popular across all socio-economic classes. Even some wealthy individuals that previously disdained renting a few years ago have made renting their preference today. There is also a lack of new condo construction in Chicago so many people that want to live downtown in a new building with diverse amenities are apt to rent.
At 111 West Wacker and 500 North Lake Shore Drive, rents are near $2,000 for a studio apartment, $2,500 for a one bed apartment, and $4,000 for a two bed apartment. Both buildings only took a few months to reach 50% occupancy. The studio apartments are completely rented for both buildings.
Could this be the beginning of the end for the American dream in Chicago or is a new American dream forming for luxury apartment buildings? Chicago may look more like New York in a few years where almost everyone rents. We want to hear your thoughts and if you prefer renting or owning and why?
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