Downtown is seeing a surge in new apartments — is it enough?

A new forecast said multifamily developers might be pulling back due to rising taxes, political uncertainty

Chicago /
Feb.February 28, 2019 01:00 PM

Ron DeVries (Credit: Integra Realty Resources)

Chicago is expected to get nearly 8,000 new apartments in the next three years, but a new report suggests that may not be enough to meet demand.

A near-record of 4,200 new apartments are expected to come online this year, but that number will slow to 3,500 in 2020 and 2021, according to a forecast from consultant Integra Realty Resources reported by the Chicago Tribune.

But growing political uncertainty and rising property taxes could curtail further multifamily development, slowing new deliveries to a crawl in the years that follow, the forecast said.

“We have a change in the governor, change in the mayor, change in the assessor,” Integra’s Ron DeVries said. “There’s just a lot of uncertainty out there right now.”

New people in key government posts could lead to changes in affordable housing requirements, rent control, even higher taxes and more that could turn off developers and lead to a shortage of units in a few years, DeVries said. That could lead to higher rents in existing apartments.

New Assessor Fritz Kaegi already made several changes to his office and new Gov. J.B. Pritzker is pushing for a graduated income tax and has voiced support for statewide rent control. And the two mayoral candidates who made it Chicago’s April 2 runoff, Lori Lightfoot and Toni Preckwinkle, have taken several positions opposed by the real estate industry.

[Chicago Tribune]John O’Brien


Related Articles

arrow_forward_ios
Shapack Partners CEO Jeff Shapack, the Bridgford Foods plant at 170 N. Green Street, and Clayco Bob Clark (Google Maps, Clayco) 
Fulton Market project features 40-story commercial building
Fulton Market project features 40-story commercial building
Julie Thick, central region market manager, JPMorgan (JPMorgan, iStock/Illustration by Steven Dilakian for The Real Deal)
JPMorgan’s Julie Thick sees strong demand for Class A offices in Fulton Market, suburban warehouses
JPMorgan’s Julie Thick sees strong demand for Class A offices in Fulton Market, suburban warehouses
Fritz Kaegi, Cook County assessor (Getty Images, iStock/Illustration by Steven Dilakian for The Real Deal)
Cook County assessor Kaegi’s office collects $15M of ineligible tax exemptions
Cook County assessor Kaegi’s office collects $15M of ineligible tax exemptions
Kiser Group's Noah Birk and Aaron Skar with 7800, 7806 and 7822 South Laflin in the South Side neighborhood (Kiser Group)
Chicago multifamily properties attracting out-of-state buyers: Kiser Group’s Birk, Sklar
Chicago multifamily properties attracting out-of-state buyers: Kiser Group’s Birk, Sklar
Suburban Hoffman Estates 550-unit multifamily property hits the market
Suburban Hoffman Estates 550-unit multifamily property hits the market
Suburban Hoffman Estates 550-unit multifamily property hits the market
Merchandise MART and Vornado VP Glen Weiss (Loopnet, LinkedIn)
Chicago’s Merchandise Mart getting another renovation
Chicago’s Merchandise Mart getting another renovation
ESG Kullen's Eric Granowsky (principal an
d co-founder) and Tom DelPonti (founding principal) (ESG Kullen, The Oliver on LaSalle)
New York investor wants to cash out on condo-to-apartment converted building
New York investor wants to cash out on condo-to-apartment converted building
Henry Kravis, co-founder and co-executive chairman, KKR (KKR); and Logistics Property In Suburban Chicago area (Crow Holdings)
KKR fund buys 923K sf three-building logistics property in suburban Chicago as part of $264M deal
KKR fund buys 923K sf three-building logistics property in suburban Chicago as part of $264M deal
arrow_forward_ios

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

Loading...