Chicago apartment vacancy rate continues to fall

The Marcus & Millichap Second Quarter 2012 Local Apartment Report (pdf) for Chicago was just released, and the forecast is for continued tightening in the city apartment market. From the report:

Vacancy and rents
Minimal construction and a steady flow of new residents into rentals lowered the city vacancy rate 30 basis points in the first quarter to 4.6 percent. Since peaking in early 2010, resurgent demand has shaved 230 basis points off the vacancy rate.

The average asking rent advanced 0.3 percent in the first quarter to $1,195 per month and has gained 1.2 percent in the past year. Effective rents are 1.6 percent more than one year ago following a 0.4 percent increase to $1,110 per month in the first three months of 2012.

Outlook: Vacancy will fall 60 basis points this year to 4.3 percent. Following a 1.4 percent increase in 2011, asking rents will rise 4.3 percent in 2012, joined by a 5.0 percent jump in effective rents. In 2011, effective rents rose 1.7 percent.

There’s much more in the full report, which you’ll need to register to access.

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