Several sources suggest rent dropped in Chicago during this past year:
And she’s not alone; in Chicago, rents dropped by almost 12% in December compared to December 2019, according to a new report from Apartment List, a website for apartment rentals. Average rent was $1,355 in Chicago a year ago; it fell to $1,193 in December.
Zillow data, too, marked the starkest plunge in year-over-year rental prices in the Chicago metropolitan area since it began analyzing national rents in 2014, with a decline starting in July and continuing through the latter half of the year.
Zillow reported a 2.2% decline in Chicago-area rents in November compared to a year earlier. When including the suburbs, Apartment List’s figures — which the service claims is more closely aligned to U.S. Census Bureau data — showed a similar decline of 6%, suggesting the suburban markets have not been as hard hit as the city.
Chicago was among the most severely impacted cities when it came to falling rents, said Rob Warnock, who co-authored the Apartment List study. Due to the pandemic, more expensive cities with competitive job markets saw rent decline — many for the first time in a decade.
It is good to see more data on the effects of COVID-19 on housing. As the article suggests, even a small drop in rents could be helpful for people in more uncertain economic times. This is not a big drop percentage-wise in Chicago, particularly compared to larger drops in Manhattan or San Francisco, but the Chicago market as not as overheated as some locations.
At the same time, it would be fascinating to see more detailed data addressing:
- Within cities and metropolitan regions, where have rents dropped, stayed about the same, or risen? And how does this line up with other social patterns?
- How much longer can renters and landlords continue on this path? How might this matter by location, different kinds of housing, and different landlords?
- Does this do anything to help address long-standing affordable housing issues in Chicago or is it a slight blip?
Some of these will take time to resolve as will the question of whether rents will go back at some point. In the meantime, many people in many communities are affected by these changes.