By Nadia Balint, Associate Editor, RENTCafé
2016 was a year of moderate rent increases in the city of Chicago. The average price for a rental in Chicago went up 5.9 percent year-over-year, closing the year at $1,738/month.
Only three Chicago neighborhoods saw rent increases above 5 percent last year. Douglas/South Commons/Bronzeville suffered the highest rent jumps, 8.3 percent year-over-year, with an average rent of $1,164/month as of December 2016. The South Side neighborhood located South of 26th Street and North of Pershing Road is a predominantly renting community, with a stock of over 4,000 rental units located in large properties.
In second place was North Side’s Lincoln Square, with a year-over-year increase of 7.2 percent, bringing the average rent in the area to $1,249/month. The third highest price jump took place in Rogers Park, 5.7 percent year-over-year, a neighborhood increasingly attractive for investors.
In the aftermath of extensive multifamily construction, rate increases have generally cooled down in more expensive neighborhoods that demand rents well above the average rent in Chicago. Rents in the Loop were up only 1.3 percent year-over-year, the Near North Side saw a shy 1.7 percent increase and Lincoln Park rents rose by only 1 percent last year.
Rent prices declined by -9.9 percent in the Grand Boulevard area and by -5.1 percent in Lawndale.