The local real estate market has been booming this spring, with houses and condos selling in days at or above asking price. Inventory rates remain low as fewer sellers enter the market, whether that’s due to high interest rates or an inability to find something to move into.
A similar inventory shortage is playing out in the local rental market.
“What I’ve been seeing this spring is that we’re not seeing the number of listings we usually have,” said Michael Stewart, associate director of the Oak Park Regional Housing Center. “More building owners and managers are saying they have no openings.”
The OPRHC is a nonprofit organization that works to connect housing seekers and providers throughout the Chicago, area but with a focus on west Cook County communities. Building owners and managers register for free with the OPRHC to provide local listings, and apartment seekers register with the OPRHC to get help finding a rental. Stewart said that helping people find rentals is what the Housing Center has been doing for 50 years.
This year more than other years, he said, the market is tighter with fewer local listings. He’s hearing from current tenants that they don’t want to give up their leases because the prices they see for new leases are more expensive than what they are paying.
Property owner and managers are telling him that they are facing increased costs in their property taxes and for utilities. Stewart said that local rent often includes the price of water and heat, so when those prices go up, so does the rent.
Property owners say they feel the need to pass on their increased costs through rent increases, but Stewart said that can be hard for established tenants. He’s heard from tenants that rent prices are increasing more than normal.
“I recommend to our owners that they do small, conservative increases every year rather than one large increase because that’s easier for the tenants. Tenants can budget for it and can typically afford that,” he said. “Tenants feel offended by and can’t afford the big jumps.”
Stewart works with building owners and managers to let them know what apartment seekers are looking for in a rental. For instance, a lot of renters today have pets, so it can be beneficial to have pet-friendly options.
“I also tell building owners and managers that it’s good to have a range of prices within a building. You get a good mix of people and products, and you can also weather different economic climates better.”
As for apartment seekers, Stewart said, “there’s the wish list and then there’s the reality list. We help everyone we come in contact with even if they don’t get exactly what they want. We can give everyone a little bit of hope in the process.”
Stewart said that there are two big markets in Oak Park rentals: the new construction buildings and the vintage apartment buildings. “I think it’s great that we have that variety in Oak Park.”
The new construction buildings often feature the latest finishes and amenities with a higher-priced rent to match, while the vintage buildings have been updated and can offer great square footage but without the most modern bells and whistles.
Oak Park’s newest rental building to hit the market, Pleasant Street’s The Porter, is advertised in on-line rental searches as starting at $1527 per month for a studio and up to $7425 per month for a three-bedroom rental.
Stewart said the higher rents of new buildings can skew peoples’ perceptions of the average rent in Oak Park, but when you factor in the vintage rentals, Oak Park is still an affordable place to live in the Chicago area.
While the data on rent prices changes weekly, Stewart said that a vintage one-bedroom apartment in Oak Park might run $1,100 to $1,400 and up, and a two-bedroom unit might be priced at $1,600 to $1,900 and up.
“The moral of the story is: There are more affordable listings out there.”
Stewart said that all buildings in Oak Park are welcome to list with the Housing Center for free and any apartment seeker is welcome to use the Housing Center’s services.
The Housing Center typically works with those who can pay market rate, but if an apartment seeker has a subsidy, they can also work with the staff at the Housing Center.
Stewart said the OPRHC offers services and education for those in the rental market.
“Within our umbrella, we can help you get counseling to repair your credit. We can help you understand what building managers are looking for; we can go over the total costs of rentals so that you know what salary would be needed to afford the rental.”
Anyone looking for an apartment is welcome to call or come into the OPRHC at 1041 South Boulevard or register with https://liveinoakpark.com/
