Rents per square foot rose from less than $2.00 in 2002 up to $2.85 in the first quarter of this year
Chicago, IL (PRWEB) May 13, 2015
Peoples Home Equity, a lender with much activity centered in the Midwest was intrigued by a May 11th article by ChicagoBusiness.com titled “How high can downtown apartment rents go?”.
The article starts off with the fact that “Downtown apartment rents rose to a new high in the first quarter, at least temporarily easing worries that a surge in development will flood the market with too many apartments.” Rents per square foot rose from less than $2.00 in 2002 up to $2.85 in the first quarter of this year. Meanwhile the occupancy rates declined from 95.1% in the first-quarter of 2014 to 94.3% this first quarter. The article states that now “Downtown landlords will face a test this year and next as developers complete more than 7,600 apartments in the central business district.” Peoples Home Equity is pleased to hear that Chicago is offer more inventories. Chicago’s market is very demand driven by low inventories.
According to WorldBusinessChicago.com on April 8th, Chicago's unemployment rate was recorded as 6.7% in February 2015 still has much room for improvement. As more of the city becomes employed both landlords and lenders alike can expect more housing activity.
Peoples Home Equity thinks that the new supply of housing will not soften the increase in property prices. Young first-time home buyers are mostly unable to afford a new building unit; instead they are looking for existing homes for sale. Thus, there is some reliance on high income earners downtown to move out of their units and sell them to new first-time home buyers. Given that Peoples Home Equity expects continuation of higher property listing prices leading in the late summer, the lender strongly encourages all prospective buyers to get pre-approved for a home loan now. Being pre-approved now enables buyers to start bidding on properties before prices rise higher. In addition, rates are expect to rise with increasing demand, which only further fuels the need to get pre-approved now.
If listing a property for sale and are in need of a mortgage for a new home, contact a Peoples Home Equity loan officer today at: 262-563-4026