Chicago is the 3rd largest metropolitan statistical area in the U.S. and spans 14 counties with an estimated population of 9.5 million people. The market has experienced recovery since the recession, with home values increasing more than 28% since 2011. While home values still remain 14% below the prior peak, they are expected to increase an additional 8% by 2019.
Chicago is at peak levels of employment with steady growth, having added back the jobs that were lost during the Great Recession. The Chicago metropolitan area has had over-the-year employment increases each month since October 20101, and ranks 9th for total MSA job growth. Rentership rates also increased from 32% in 2011 to 37% in the second quarter of 2017.
At more than 9%, Chicago has solid gross rental yields that are expected to stay strong into 2020. Household growth, median household income, and rent growth are also forecasted to stay positive through 2020. We believe these underlying elements support housing demand and drive single-family rental investment returns.
At 94.9%, Chicago’s occupancy rates are above the weighted average for the top 20 single-family rental markets in the U.S. (93.6%).
A global business services sector, Chicago is home to two major airports and high-income jobs from top global employers such as Deloitte, J.P. Morgan Chase, and Aon Hewitt.
Chicago draws a talented young workforce from local top-notch universities, which fuels rental demand.
Chicago is a hub for the retail sector and headquarters to Walgreens, Sears, Ace Hardware, Claire’s, ULTA Beauty, and Crate & Barrel.
In 2016, Chicago attracted a record 54.1 million visitors, contributing more than $15 billion to the economy.