(Above) Looking south down south branch of Chicago River in 2018. Wolf Point West at right. Photo by Sean Pavone.

By Don DeBat

3-Apr-25 – Apartment hunters on the North Side of Chicago this spring may notice some hefty rent prices and additional fees being tacked on by landlords.

Integra Realty Resources, a national appraisal research firm, reported that new monthly rents at top-tier high-rise apartment buildings downtown were a record-high $3.61 per square foot in the third quarter of 2024, up 2.27 percent from the same time frame in 2023.

That means asking rent on a typical two-bedroom, 1,000-square-foot luxury downtown apartment – in an upscale neighborhood like Gold Coast, Lincoln Park, or Old Town – likely would be $3,610 a month.

Citywide, average rents now are $2,675 for one-bedroom units and $3,404 for two-bedroom layouts, reports ApartmentHomeLiving.com.

In 2025, apartment rent increases in some of Chicago’s chichi lakefront neighborhoods may soon reach double-digit levels.

Rental analysts say the steep increases in median rents can largely be traced to the continued spike in property taxes and higher operating expenses that must be passed on by landlords.

According to Redfin, a national real estate brokerage firm, “catch-up” rent increases can be heftier during the spring and summer seasons.

An average Windy City apartment that rented for $1,000 a month in March 2024 now would list for $1,120 a month – a 12 percent boost in price, Redfin said.

Downtown and Near North Side luxury apartment rents also are on an upward elevator ride, reported Luxury Living Chicago, a high-end rental apartment leasing firm.

Rents for top-tier apartments rose 3 percent year-over-year last spring, pushing the average monthly rent for a downtown Class-A apartment above $3,100 for the first time ever.

The posh Streeterville neighborhood (left) posted the highest average rents at $3,454, trailed closely by Gold Coast/Old Town at $3,445 and River North at $3,426, according to the report.

Young professionals in their late 20s or early 30s with high-paying jobs make up a large segment of the renter profile for these chic buildings.

The minimum annual income threshold for most of these ritzy apartments is $75,000, though the average income in the newer luxury buildings is approximately $120,000.

In addition, North Side “Ma and Pa” landlords with under-market rental rates are upping base rental charges by adding special fees for off-street parking that range from $75 to $200 a month.

Another fee – ranging from $25 to $150-plus on average per month – is being charged for “bundled utility pass-throughs,” and often include water and sewer, garbage hauling, landscaping, and snow removal. Dog and cat lovers now are being routinely billed monthly “pet rent” of $50 per animal.

Most landlords are not charging a security deposit, which typically is refundable, less any damages to the unit. Instead, to improve cash flow, more and more owners are demanding up-front, non-refundable move-in and administrative fees ranging from $350 to $500.

North Lincoln Square. A 4-flat owner with soaring real estate taxes was forced to hike one-bedroom apartment rents on new leases this spring to a range of $1,600 to $1,650 from an affordable $1,300 to $1,350 in 2024. That’s a whopping 23 percent rent catch-up increase.

The rent hike is directly attributed to soaring real estate taxes that skyrocketed an astounding 46.5 percent from $7,642 in 2020 to a projected $11,200 in 2024.

Once an affordable rental neighborhood, the average rent this spring in Lincoln Square (right) is $1,592 for a one-bedroom unit and $2,034 for two-bedroom layouts. Photo by Colin Andersen

Rents are rising even faster in posh neighborhoods such as Lincoln Park and Old Town.

Lincoln Park. The owner of a Victorian 5-flat recently leased a one-bedroom apartment for a whopping $2,765, up 31.6 percent from $2,100 in 2024. The base rent in 2025 was $2,575, plus a $75 utility pass-through fee, pet rent of $50 per animal, and a storage locker charge of $65. That’s a 46.5 percent rent increase, most of which will go to pay for a 2024 projected real estate tax bill of $27,620.

Old Town. The owner of a Victorian 4-flat leased a two-bedroom, two-bath apartment for $3,620, up 27 percent from $2,850 in 2024. The base rent for 2025 was $3,495, plus a $75 utility pass-through fee and pet rent of $50 per animal. Most of the rent increase will go to pay for a 2024 projected real estate tax bill of $26,816.

2024 reassessment sparked rent hikes

Cook County Assessor Fritz Kaegi reported assessed values of large multifamily apartment properties in Rogers Park Township grew to $213.04 million (before appeals), up an exorbitant 46 percent increase from $145.63 million in 2023. In Rogers Park, multifamily apartments experienced a significant increase in assessed value in the township, Kaegi said.

Rogers Park Township (left) is bounded roughly by Lake Michigan on the east, Howard Street on the north, Ridge Avenue on the west, and Devon Avenue on the south. Photo by 606 Vision

It includes about 800 commercial apartment buildings containing more than four units.

In Chicago and Cook County, commercial properties are assessed at a hefty 25 percent of market value, while single-family homes and small apartment buildings are assessed at 10 percent of market value.

Median multi-family apartment values have soared 20 percent in the township since 2021, the Assessor reported. West Chicago Township has 7,168 commercial multi-family properties containing more than four units.

The boundaries of West Chicago Township are west of the Chicago River on the east, North Avenue on the north, Pershing Road (39th Street) on the south, and Harlem Avenue on the west.

Experts say apartment dwellers in the hot West Town neighborhoods of Bucktown and Wicker Park, along with the Near West Side, Humboldt Park, Austin, East and West Garfield Park, and North and South Lawndale, also should expect hefty rent increases this year.

If apartment hunters are willing to shop in a less fashionable off-the-lake neighborhood, deals can still be found. Thrifty apartment seekers are advised to shop in ZIP codes similar to 60608. In this area – encompassing the Lower West Side, Little Italy, and Bridgeport neighborhoods on the West and Southwest sides – median rental costs were almost $1,000 a month lower at $1,770 a month.

Suburban Chicago apartment market is hot in 2025

Suburban apartment renters in the Chicago area this spring face the toughest competition in the Midwest, with the highest number of applicants per unit amid fewer available options.

Chicagoland renters typically reside in the same apartment for more than two years, further lowering options by keeping coveted rentals locked in.

Rent Café’s latest “Rental Competitiveness Report” reveals the rental market dynamics in anticipation of the moving season, compiling exclusive data directly from market-rate, large-scale multifamily properties.

Here’s how difficult it is to secure a rental apartment in Chicagoland right now:

• In suburban Chicago, ten apartment hunters are vying for each vacant unit, while their options got thinner. Lease renewals have risen to 70.4 percent, up from 68.2 percent in early 2024, pushing the occupancy rate to 95.4 percent, compared with 95 percent a year ago.

(Right) Arbor Lakes apartments in Arlington Heights. Photo obtained from TLC Management Co.

• Suburban Chicago renters stay in place for about 2.5 years, keeping sought-after apartments off the market. With minimal new units added, it’s no surprise that the majority of apartment dwellers are hesitant to move, thus driving up lease renewals and occupancy rates.

• Vacant apartments in Chicago are also filling up faster with vacant units renting in an average of 40 days – two days quicker than at this time last year. Lease renewals have also increased with 59.2 percent of renters choosing to stay put, up from 58.1 percent a year ago. Consequently, this has pushed Chicago’s occupancy rate to 94.4 percent, up from 93.8 percent in early 2024.

• Under these circumstances, the rental competition in Chicago has heated up with eight applicants now vying for each available unit, up from six applicants last year.