Suburban Luxury Rentals Lure Urban Chicagoans

The image of suburban luxury is getting a major remodel.

Forget the cul-de-sac McMansion and white picket fence — for a growing number of Chicagoland residents, upscale living now means a three-bedroom apartment with marble floors, a golf simulator and a latte bar in the lobby.

Driven by steep homeownership costs and shifting lifestyles, demand for high-end suburban rentals is surging, the Chicago Tribune reported, citing Integra Realty Resources.

“The cost of housing is so high, and with interest rates where they are, people are staying in apartments longer,” Integra’s Ron DeVries told the outlet. “We’re seeing demand for bigger units — more space, more bedrooms, more amenities.”

Median suburban rents climbed 4.1 percent year-over-year in the second quarter, with one-bedrooms averaging $1,830 and two-bedrooms $2,190 across six collar counties. In some markets, the increases were sharper: One-bedroom rents jumped nearly 17 percent in Waukegan and Gurnee.

Occupancy rates are tight at 97.5 percent.

Median rents increased by 6 percent for two-bedroom apartments in McHenry County and by 5.5 percent in Naperville and Aurora year-over-year.

The suburban luxury boom cuts across demographics. Empty nesters and retirees are trading single-family homes for maintenance-free apartments. Younger families are renting in good school districts while waiting out high mortgage rates. And professionals untethered from downtown commutes are opting for suburban properties that blend comfort with convenience.

Developers are taking note. Bradford Allen is planning Arbor House, a 301-unit project in Arlington Heights with co-working space and 25,000 square feet of ground-floor retail.

In Skokie, Tucker Development and Wingspan Development recently debuted The Henry at Harms Woods — 245 apartments and 49 townhomes spread over 11 acres, with a pool, yoga studio and conference rooms.

And in Winnetka, Murphy Development Group and Harrison Street secured financing from Acres Capital this summer for the $89 million One Winnetka project, a plan to turn a 1.2-acre parcel at Lincoln Street and Elm Avenue into 59 luxury apartments with 20,000 square feet of retail space. The total project cost is pegged at $89 million, which amounts to $1.5 million per residential unit.

— Eric Weilbacher