High Fidelity Property Management analyzed its data from 1,000 apartment units spanning 29 Chicago neighborhoods to see what’s happening in the mid-market, Class B, neighborhood apartment market. The majority of the units in the portfolio are located in Logan Square, West Town, Bucktown, Wicker Park, and Pilsen.
Average Rental Price By Unit Type:
- Studio: $1,175 per month
- 1 Bed: $1,530 per month
- 2 Bed: $2,070 per month
- 3 Bed: $2,654 per month
- 4 Bed: $2,690 per month
Key Findings:
- New leases have an average rent growth of 17.51% since January 2022. Concessions are factored into this growth.
- Renewals see a 4.4% increase in rent.
- Since the beginning of the year, 65% of High Fidelity Property Management residents have renewed their lease.
- Two- and three-bedroom units are seeing the highest rent growth with new leases seeing $200-$400 per month increases.
- Average market time is 15 days.
- Current portfolio vacancy is 1%.
“The game plan for 2022 was to focus on resident retention. During the pandemic, investors were battered with vacancies, delinquencies, and reduced rental rates,” said John McGeown, Owner of High Fidelity Property Management. “Our objectives have been to minimize leasing commissions and turnover costs while increasing rents whenever possible. Part of that strategy was keeping an open dialogue with our residents and negotiating terms well in advance of lease expirations. When we weren’t able to renew residents, we’d market apartments at 20% increases year-over-year, and we’ve hit that number 90% of the time.”
