Chicago City Wire

CHICAGO (Aug. 15, 2024) – Chicago renters are experiencing unprecedented increases in rent, with prices rising significantly and unlikely to decline unless the city enacts regulatory reforms.

According to an analysis by the Illinois Policy Institute, rents across Chicago have increased by 41% in just under ten years, with renters now paying an average of $2,200 per month. Average rents for one-bedroom apartments are approximately $1,880 per month citywide, two-bedroom units exceed $2,400 per month, and three- or four-bedroom apartments cost over $3,000 monthly. In January 2015, rents averaged $1,560.

Rents are projected to continue increasing. They rose by 1.4% in June alone and have surged by 6.2% during the first half of 2024. Low prices on Chicago’s South Side and West Side mask much higher rates in safer and more affluent neighborhoods.

The neighborhoods with the highest rental rates include Streeterville, Near East Side, and Dearborn Park. Conversely, areas such as Homan Square, West Garfield Park, and Austin have the lowest rents.

The institute's findings indicate that nearly half of Chicago renters spend more than 30% of their income on housing costs—exceeding the federal affordability threshold. Among low-income residents in the city, almost 90% pay above this threshold.

“Rising and record-high rents are making things harder for residents. Chicagoans can’t afford housing costs that are rapidly outpacing inflation and wage growth," said Bryce Hill, director of fiscal and economic research at the Illinois Policy Institute. “Slowing new construction and burdensome regulations have spiked housing costs. Cutting through regulations and government red tape would clear a path to housing affordability in Chicago.”

Experts suggest full deregulation could reduce housing prices by up to 50%. Other proposed reforms include cutting restrictive zoning laws and time-consuming permitting processes as well as eliminating costly requirements for construction aesthetics.

For further details on Chicago’s rising rent costs visit illin.is/rents.