Be prepared to pay quite a bit.. * Our Windy City is one of the more affordable major cities nationwide, beating New York,San Francisco and Washington DC. And even with the rental market booming you can still find a good, reasonable deal on one and two bedrooms apartments. Studios, once the cheapest renting option, now are simply expensive. Lovely Market Rental Report Q2 2014 (livelovely.com) shows, that rents for studios have gone up by incredible 40%. “For the second quarter of this year, the report puts the median studio rent in Chicago at $1,298 per month, with the overall median being $1,600 per month”.
What are the most expensive rental areas in Chicago? Goose Island, which is the only island on the Chicago River in Illinois with the price of $2,400. The least pricey- South Side’s Chatham with a median rent rate of roughly $750 per month.
You are probably thinking: what is she talking about? Isn’t it a real estate blog I’m reading?
Yes, it is a real estate not so much, but life related a very interesting article https://www.linkedin.com/today/post/article/20140520110422-6126609-if-i-…
It makes you contradict well known thesis and look at the young Millennial Generation (which we talked about on various occasions).
The author, Elliot S. Weissbluth Founder & CEO HighTower says that “Millennials want to work for organizations that support and drive innovation, because to them it’s a natural means to drive positive change”. In his words, if you want to be an innovator learn three things:
Innovation does not result from a major shifts in thinking;
It is driven by doers not thinkers;
Do not rely strictly on expertise but work around its edges.
Do we agree? Disagree? Would we write a different kind of lessons for all the 22 year olds who badly want to change the world?
The author says,that Millennials “are the first generation in many to enter a workforce and economy that is not handing you success on a silver platter gives you the motivation not just to survive, but to excel”.
Change our world?
We have heard that phrase being repeated over and over again. And yes,you might say it sounds kitschy, but oh so true..
According to http://www.bloomberg.com/news/2014-07-10/renters-trading-size-for-frills… young professionals are simply trading size of the rental property for its prime location.
They sacrifice the space for top dollar rentals in good areas with attractive amenities and luxurious perks, and specials like: cooking classes, poolside wi-fi,gym,rooftop deck and all the hip restaurants and bars with close proximity.
” The median size of apartments in new U.S. buildings fell last year to 1,043 square feet, the smallest since 2002, Census Bureau data show. At the same time, leasing is getting more expensive. The U.S. average rent per square foot was $1.25 in May, the highest in records dating to 1996, according to Axiometrics Inc. ” The statistics are incredible. Trulia reports, that rents in June actually rose faster than wages in all of the 25 largest U.S. rental markets.
We see an ” urban shift ” in housing trends, because of offices concentrated in downtowns. That draws tenants in. And location wins…
Interest rates on mortgages are fairly low, home prices gain is easing up, but why so few people are not buying real estate?
” The answer is pretty simple: Too many people can’t afford to buy homes” – http://www.cnbc.com/id/101823538
Even though we see a national slowdown for price increase, it continues in close to 98% of the metropolitan housing markets. And around 40% surveyed homeowners getting ready to list their homes say they will ask prices above the market value.Reason? Over the last five years prices have gone up and down so much the sellers don’t really know what their homes are worth in a current market. Chicago placed seventh in Trulia’s top ten US metro markets, where asking prices rose most year-over-year.
” Unfortunately, affordability concerns are not limited to the home-buying market. Rent is also rising and taking a larger chunk out of people’s paychecks “. And again, going by Trulia’s findings,Chicago is the 12th out of 25 metro markets, where rent increase is more that a wage increase. In some markets rents are more than half of the average local wage. Wouldn’t be cheaper to buy? Yes but we are going back to potential buyers not having enough for down payment or not good enough credit to qualify for a mortgage-issues.
We got just released by RealtyTrack statistics from June 2014 about foreclosures in Chicagoland. In Cook County the foreclosure cases were initiated against 1,282 homes in June, higher than a month earlier or in June from a year ago.
“An additional 1,127 homes were repossessed by lenders and became bank-owned last month”. Looking at the national numbers we can tell that foreclosures fall. Seeing from the data above Chicago has it on a rise.
“Foreclosures continue to act as a drag on the local housing market’s recovery, since almost 73,000 properties are in the foreclosure process or already bank-owned, more than any area other than New York or Miami”.
Those numbers are overwhelming- 73,000 homes…..To make things worse the buyers/investors are not pursuing those sales. One of the reasons- some of the homes are in a dire condition.So who is buying some properties that no one wants? Cook County Land Bank, who as an authority is ready and able to work with residents, organizations and businesses to put vacant and abandoned homes, buildings and parcels back into productive use. The rest of the foreclosed homes are still waiting …