Chicago Rents - Whoa (Oak Park, Avon: foreclosures, rental, mortgage)

[chet everett]

Very interesting perspectives -- https://www.citylab.com/equity/2016/...nation/506258/

What is the cause? Is it gentrification -- NOPE! Is it some byproduct of regulations that restrict rentals? NOT AT ALL!

Just like folks above saying that they simply want "more updates" and "their own space without roommates" the answer is not at all surprising:

The actual answer, according to the study, is much more basic. Renters are simply spending more money to consume more housing. Consumption of amenities such as more bathrooms, washer/dryers, dishwashers, and central air conditioning grew even more. The number of units with two or more baths more than doubled between 1985 and 2011. The percent of units with dryers grew from 30 percent to 53.2 percent; the share with dishwashers increased from 28 percent to 49.7 percent and the share with central air increased from 25.9 percent to 53.1 percent.

The article also has some VERY interesting things to say about what this shift in spending much more on RENT means for the general economic health of the nation, hint, it ain't good, but the reason is surprising and I do hope that folks who read the whole article consider EXACTLY how their lifestyles in Chicago make the economic inequality worse...

[frimpter928]

Originally Posted by usamathman

What website are you looking on? I see a ton on places ~$1000 on craigslist. BJB properties has apartments in the $900 range in Rogers park and a few other areas closer to the city.

Chicago is hands down a great bargain compared to other major cities.

I am not saying Chicago isn't a bargain, I am just surprised how much rent has gone up since I last looked up for apartments.

Roger's Park is on the border of the city. The simple fact that you have to go ALL the way to the very end of the city to find rent prices like that says a lot. To be that far up, I would just move to Berwyn or something like that. Also talk about being isolated. I would be near no one that I know, and even more difficult without a car.

[dtcbnd03]

Chet you are 100% correct on that point too. Renters often have champagne taste on a beer budget. I'm literally going through that now where I'm renting 3 bedroom places in a transitioning neighborhood and they all want bedrooms that can fit king size beds, central heat/AC, in unit laundry, etc. but can barely afford $1,500/month. I think this is equally true in the housing market. Just look at the small ranch homes that passed in the 70s and compare them to 5 bed / 3 bath homes today...

[BRU67]

Originally Posted by SkylarkPhotoBooth

I have a good friend who lost a lot of money after a realtor convinced her to buy a condo in "up and coming" Berwyn right before the 2008 crash. ("Near the city! Very near downtown Oak Park dining options! Fitsgerald's! Cool vintage Chicago-style apartment buildings!" I can kind of see how it made sense to her, though it's a little too far out from downtown for me.) She lived there for many years waiting for the value to rebound before finally giving up and selling for a loss a few years ago. Berwyn still seems like the kind of place that should have increasing property values, but apparently doesn't, at least not since the last bubble burst.

We're talking about renting though. Buying is a different matter. Holding it back are schools and, increasingly, taxes, especially on the multi-units. They're very high, and likely to get higher to address the bond debt and underfunded schools.

[SkylarkPhotoBooth]

Originally Posted by BRU67

We're talking about renting though. Buying is a different matter.

True. My point was that Berwyn remains a relatively cheap place to live, though. (I was agreeing with a poster who is benefitting from its low prices while telling the story of someone else who lost out because of its low prices, which many didn't expect to remain this low for this long before the market crash.)

[pureistheword]

Originally Posted by frimpter928

My challenges with places like Pilsen are that while I love them and do visit it, it's not my usual hang out. I mostly hang out in and around Logan Square. My friends and family all live in Logan Square, Bucktown, Avondale, Irving park, Lakeview, and that's where I go out to eat, drink and socialize. If I went down to Pilsen I would be a lot more isolated than I would like.

I live in the eastern part of Irving Park - close to North Center (although I am closer to Albany Park than Avondale). I got my unit last year, $1300 but its 2 BR fully rehabbed with in unit laundry. Late last year I was browsing 1BR ads and found ones that were not all that nice but renting for 975-1000. I am not sure if prices really changed that much in a year but I suspect you can find what you are looking for.

[knitgirl]

I live in a pretty basic, but well-maintained 4 room, 1 br in Bowmanville. Rent is going up to $1075 plus heat and hot water. I've thought about moving, but going south of Foster would cost at least $100 more/month.

[BRU67]

Originally Posted by SkylarkPhotoBooth

True. My point was that Berwyn remains a relatively cheap place to live, though. (I was agreeing with a poster who is benefitting from its low prices while telling the story of someone else who lost out because of its low prices, which many didn't expect to remain this low for this long before the market crash.)

You can still get a very nice house there for well less than $300,000 there. I have a different mentality towards housing and believe it should increase in value, because I would like to retire at some point and don't understand why you would want to take on the hassle of home ownership without there being some financial benefit. Some people, however don't care much about equity, and like the diversity that affordability brings. Now if only our taxing bodies would cooperate, LOL!

[SkylarkPhotoBooth]

Originally Posted by BRU67

You can still get a very nice house there for well less than $300,000 there. I have a different mentality towards housing and believe it should increase in value, because I would like to retire at some point and don't understand why you would want to take on the hassle of home ownership without there being some financial benefit. Some people, however don't care much about equity, and like the diversity that affordability brings. Now if only our taxing bodies would cooperate, LOL!

Nothing you're saying goes against what I was saying. My friend also bought for financial benefit and to build equity, but just happened to buy at the wrong time (before the 2008 bubble burst) and wrong place for the time (a place that has been slowest to recover from the crash). It sounds like you either bought after the bubble burst and/or are still holding out for things to return to the levels of the bubble and beyond. For your sake I hope it works out.

[lepoisson]

You could move to a place like Pilsen. There are plenty of 1br apartments in the $800-1000 range.

Logan is expensive because it's a trendy area.