With an abundance of empty apartments, renters are negotiating their way into premium buildings.
The good times for renters are likely to continue, since more high-end apartments are on the way. Last month, M&R Development broke ground on Parc Huron, a 221-unit luxury apartment building in River North that originally was to be developed by Lennar Corp. as condos. Other buildings on tap, many in River North, are expected to add almost 2,500 rental units to the market next year.
The supply of condos available for rent is expected to increase too. Investors who bought condos at pre-construction prices a few years ago and planned to resell them are finding their plans quashed by higher down payment requirements and the credit market's meltdown. Personal circumstances are forcing other owners to abandon their plans for a second home in the city. And buyers who planned to use them as rental properties are finding themselves having to deal, given the competition. Just along the Gold Coast, there are 64 condo properties that have been on the rental market for at least 180 days.
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