Apartments are unaffordable in more than half of Chicago: report

Median 2-bedroom rents are outpacing median incomes all over the map, Renthop researchers found

Chicago /
Aug.August 24, 2018 10:02 AM

(Credit: Steven Damron via Flickr)

Average two-bedroom apartment rents are outpacing household incomes in more than half of Chicago’s ZIP codes, leaving families struggling to pay rent in neighborhoods all over the map.

Of the 70 ZIP codes studied in a report published by Renthop this week, the average renting family in 40 of them is spending more than 30 percent of its income on its home, according to the report.

The ratio of rents to incomes is highest in in the ZIP codes covering West Englewood, Kenwood and East Garfield Park, where median rent for a two-bedroom apartment is at least 60 percent of median monthly household income.

Researchers studied almost every ZIP code in the city, plus about a dozen in nearby suburbs. They used 2016 income data from the U.S. Census Bureau and Renthop apartment listings to determine median rents.

ZIP code 60616 — which covers parts of the South Loop, Bridgeport and Oakland — was listed as the city’s fourth-least affordable, with a median two-bedroom rent of $2,025 and a median family income of $42,776.

Suburbs like Glenview, Park Ridge, Mount Prospect and Orland Park were listed among the most affordable parts of the region, with household incomes generally between $50,000 and $70,000 and family-sized apartments renting in the $1,200-$1,500 range.

But neighborhoods like Bronzeville, Uptown, Pilsen and Rogers Park ranked among the least affordable, as demand from new residents drives up rent for rooted families.

“Rents get lower as you start to move away from the city center,” said Adrian McHale, a Renthop researcher and author of the report. “But interestingly, you’ll find that affordability gets extensively worse in those medium-distance neighborhoods, because rent isn’t going down far enough to match incomes.”

Uptown and Bronzeville have both seen surges in outside investment in the past few years, sparking fears that long-time residents could be priced out.

Unsurprisingly, Chicago is still boasts dozens of more affordable neighborhoods than the five coastal cities also examined in the Renthop study. Median rent is less than 35 percent of the median income in about two-thirds of Chicago ZIP codes. That’s compared to just 29 percent of Miami ZIP codes, 9 percent of Los Angeles and 8 percent of New York City.

National average rents reached a record high in June, led by Manhattan’s median of $4,116.

Last month, a RentCafe report suggested the Chicago region may not be building enough large apartments to keep up with a surge in family renters.


Related Articles

arrow_forward_ios
Hilton Chicago Magnificent Mile Suites and Procaccianti Companies CEO James Procaccianti (Facebook, Procaccianti)
Hilton Chicago Magnificent Mile transferred to lender amid pandemic struggles
Hilton Chicago Magnificent Mile transferred to lender amid pandemic struggles
Greystar buys site earmarked for 20-story West Loop tower
Greystar buys site earmarked for 20-story West Loop tower
Greystar buys site earmarked for 20-story West Loop tower
Elk Grove Village to get $1B data center project
Elk Grove Village to get $1B data center project
Elk Grove Village to get $1B data center project
An early rendering of 523-45 South Wabash Street (BKV Group)
$350M mixed-use development in Loop approved
$350M mixed-use development in Loop approved
Donald Trump with the Trump International Hotel & Tower in Chicago (Getty, iStock)
Trump gets another tax break on Trump Tower retail space
Trump gets another tax break on Trump Tower retail space
Jenner & Block poised to sign new lease at Chicago’s River North building after settling suit with landlord
Jenner & Block cuts space at 353 N Clark after settling suit with landlord
Jenner & Block cuts space at 353 N Clark after settling suit with landlord
Industrial investors say ineffective leadership in Chicago, uncertainty of Cook County property taxes are risk factors to investing: Report
Chicago real estate pros’ biggest worries: politicians and taxes
Chicago real estate pros’ biggest worries: politicians and taxes
Mayor Lori Lightfoot (Getty)
Plans to ease cannabis restrictions in Chicago near final approval
Plans to ease cannabis restrictions in Chicago near final approval
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...