Why Chicago’s Suburban Rental Market is Trending Up
Communities are reshaping after the turbulence of the past few years, and one outcome is that people are taking a new look at suburban rental options around Chicago. People have new priorities when they search for a home, such as a better balance between life and work, proximity to support systems, added space, and access to the outdoors.
The Chicago suburbs check off many of these priorities, while still giving renters access to the professional and personal opportunities found in the city. These shifting dynamics are also making the Chicago suburbs a compelling investment opportunity for apartment building owners.
Who is Choosing to Rent in Chicago’s Suburbs
The suburban rental market is being shaped primarily by two demographic groups – millennials and Baby Boomers – but for different reasons. Where millennials are concerned, they may have been planning to move to the suburbs eventually, and the pandemic accelerated that life change. They may want more space and less density, closeness to family or other support networks, or just to test out a neighborhood before committing to it long-term.
In addition, the robust for-sale housing market over the past two years made it harder for young couples to buy a home, and now with mortgage rates rising to their highest point in over a decade, people may need to continue renting for even longer.
On the other hand, Baby Boomers, whose children have left home, are looking to downsize and sell during this hot housing market. They may not be ready to leave an area where they have established themselves, but they may like to have the flexibility to spend winter in a warmer climate or travel more often, so no-hassle rental living can be an attractive option.
How are Suburban Apartment Buildings Attracting Renters
Higher quality buildings with the latest trends in amenities are bringing renters to the suburbs. People are seeking out apartments that have outdoor spaces and buildings that have shared amenities, such as roof decks or lounges, to provide more space than a typical urban apartment.
With the rise in work-from-home lifestyles, many people are looking for units that have an extra bedroom, den, or a carve-out for an office area. Technology is a big draw for all renter demographics, as smart home features, keyless entry, and package delivery systems all increase the convenience of apartment living.
In Daniel Management Group’s portfolio, buildings such as 20 West Luxury Apartments in Mount Prospect and The Parker in Park Ridge are two locations near suburban downtowns and train stations, allowing residents to find dining and shopping options within walking distance, or easily travel to Chicago.
What Makes the Chicago Suburbs Special
Living in the Chicago suburbs still allows access to everything the city has to offer – culturally and professionally. As some companies bring employees back to the office on a hybrid schedule, living near a suburban commuter station allows renters to get downtown when they need to, but also enjoy conveniences, and an escape during their off hours.
Similarly, Chicago suburban residents can still take advantage of world-class museums, shows, live sporting events, and other city attractions while also enjoying more laidback festivals, farmer’s markets, and other events in vibrant suburban towns.
As the third largest city in the U.S., and a center for commerce in the Midwest, Chicago is a draw for college graduates and families from across the nation. Chicago’s status as a well-established commercial real estate market makes it perennially interesting for apartment owners, developers, and investors. While the nearby suburbs boast newer, more sophisticated buildings with the latest amenities to attract residents, and therefore offer another rich opportunity for entrepreneurs of real property management in suburban Chicago.