Rent increases at luxury downtown apartment buildings will continue through the fall, though at a slower pace, according to a new report by housing analyst Appraisal Research Counselors. Still, downtown rates are likely to see an overall increase of about 7 percent for 2007.
While that’s good news for landlords, the increase will only return most properties to 2001 levels after a long rental slump. That’s according to Judy Roettig, executive vice president of the Chicagoland Apartment Association, which represents apartment owners and managers.
A long string of condo conversions has taken many apartments out of the rental pool while few new ones were added. But given the improved rental outlook, the city is starting to see new rental towers such as The Streeter, Kingsbury Plaza and K Station springing up downtown.