Is the rental market in Chicago starting to slow? I have yet to run any statistical analysis from the MLS regarding rental data but my pulse on the market has accurate in the past and now I’m getting the feeling that the rental market is starting to slow. The fall is always a slower time to rent and December will be even slower than previous months, but I have noticed activity slow in the market place in comparison to last year.
While I have seen rental activity slow I have seen buyers come out of the woodwork, many of whom plan to buy this winter!
What do I believe is causing the slow down? I think we are seeing more renters turn into buyers. This is evident by inventory levels of homes for sale decreasing month after month in Chicago. The rental market slow down I speak of is only very minor. Prices are still at record highs and rentals are still renting quick but when I am starting to get the sense that rental prices are hitting a plateau. In Chicago we will see over 3,000 rental units hit the market in the coming year. While all these rental units target the class A downtown rental market (studios near 2,000/mo, 1 beds from 2,500, etc) other rental markets such as Lakeview, Lincoln Park, etc. can still feel the impact of increased inventory levels if a price war ensues downtown.