Rent is way DOWN (Chicago, Itasca: real estate, apartments, renters)

[miserylovesco.]

I was just on CL and man, rent is crazy low right now.
I moved to New Orleans and I've been looking at rent prices to gauge Wicker Park prices when I move back and wow.
I lived in that part of town for 5 years and I've never, ever have seen 2 bedrooms apts. going for what they are now.

Seeing this scares me for the current economic situation but makes me excited to get back home in a few months.

[long101]

I could be wrong but I dont think rent would be down because of the economic situation. If anything I think it would go up since nobody is buying anything. The area your looking at might of just gone down hill since last time youve looked

[miserylovesco.]

I sincerely doubt Wicker Park has gone downhill.

[aragx6]

I haven't noticed any price changes other than up in Wicker Park in the year I've been looking for a place to rent there. Maybe you used to overpay?

[lincolnparker]

There are a lot more deals on CL list primarily because of five reasons:
1. fall/winter time, ppl dont usually move around, so there is a less demand for housing as a result.
2. buyers cannot obtain credit easily given current economic condition, they instead opt for renting, which is meet by the supply of empty properties that sellers cannot sell.
3. the dollar is strengthening against major currencies. as a result foreign buyers cannot strech their buying power to finance the current account deficit which housing is part of.
4. unemployment rate is way up at a seven year high. laid off workers tend to rein in spending and look for cheaper apts. high end properties will have a harder time to find renters. They need to offer incentives like a month free, or lower pricing.
5. immigration (legal or illegal) has been halved due to the prolonged economic downtown in the US. demand for housing is trending down as a result.

[Lookout Kid]

I keep reading that rent is going up in Chicago. It was supposed to be up like 10% last year. I know several people with rental properties, and they've been telling me that they have been raising rents.

[Humboldt1]

I have raised rents in the city of Chicago and lowered my rent in Itasca. It is all about supply and demand. In Itasca, alot of people are not willing to sell for lower prices and inventories are growing to the point where people become landlords and the market has lots of rentals, driving down prices. Itasca is $1500/mth. This is a 2-year lease that started in Aug 08. I could have maybe waited for $1600/mth but I didn't want to chance it given so many other rentals on the market right now. I could totally see similar units renting for $1300-1400/mth this time next year given all the inventory and "accidental" landlords out there for townhomes such as mine.

In the city, people cannot finance purchases and are forced to remain renters, at least with the lower end properties. I would think it is tough renting out higher-end stuff than lower-end stuff, particularly with the soft economy. Humboldt Park is $900/$800/$600 (includes $100 for garage) for 3,2 and 1 bedroom apartments. Last year it was $800/$700/$450 (garage not included). I have told my renters I will increase them $50 each next January and they all seem to be okay with it.

I think the suburban rental market is soft right now, particular for townhomes and single families because of the glut of inventory due to people not being able to sell their homes. Eventually, people will have to be realistic and sell their houses for less, thereby reducing inventory and rental supply, but this will take a couple of years.

[Jesse69]

Yeah, I like it a lot when rents and house prices go down. I really hated it a lot that houses got so expensive in the 1990's to 2005. I hated people who made money off of real estate by flipping houses at higher prices. In the end, many places and cities - a good earner can't buy a good house affordably. Even the $850,000 Wicker Park home I'll inherit - I could have never bought it with my earnings.

I hope house prices crash 70% lower. So a $700,000 house would be $210,000 instead - way more affordable.

And Chicago is getting to be an expensive place to live in.

[ajolotl]

210K is about $1000/month (with 20% down at 6%). A college student could almost afford that. Unless interest rates skyrocket to Jimmy Carter days there is no way 210K will ever again get you more than a very small condo in any reasonably desirable area. If you want cheap you'll have to go to some of the more crime ridden neighborhoods and hope things will improve. Way too many average joe couples make over 100K for prices to come down like that.

Originally Posted by Jesse69

Yeah, I like it a lot when rents and house prices go down. I really hated it a lot that houses got so expensive in the 1990's to 2005. I hated people who made money off of real estate by flipping houses at higher prices. In the end, many places and cities - a good earner can't buy a good house affordably. Even the $850,000 Wicker Park home I'll inherit - I could have never bought it with my earnings.

I hope house prices crash 70% lower. So a $700,000 house would be $210,000 instead - way more affordable.

And Chicago is getting to be an expensive place to live in.

[Humboldt1]

Jesse69,

You will also inherit property taxes on that place. Waiting for an inheritance just to have a decent place to live is silly. If I was waiting for my inheritance I would not work at all. Instead, I am out there making money and getting ahead financially without my folks' help.

Condo prices are not coming down to 210K levels in nice areas that are not just glorified closets even with this real estate downturn. I am also looking at the South Loop.

I am still hoping to pick up distressed new construction condo in west loop for 250-300' that would have sold last year for 450-500K, but we will see.

I am not your average Joe. Never have been. I have always sought out more in life and will not settle for less.