CategoriesProperty Management February 20, 2025 By

Chicago Property Management Company Forecasts Rents to Rise in 2025 and Next Year – Insights for Owners

Are you a Chicago homeowner or renter? Big changes are coming, including rising rents and fewer rental units!

Recent data indicates that rents in Chicago are expected to rise in 2025 and 2026. This trend is influenced by a national decrease in apartment construction, which is leading to a shortage of available units in Chicago.

For instance, multifamily property completions will drop from 588,000 units in 2023 to just 250,000 units by 2026, significantly reducing the city’s rental property supply.

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The average rent for a one-bedroom apartment in Chicago is currently $2,163 (rent.com). With the anticipated supply shortage, these rates are expected to climb further, making it crucial for landlords to act swiftly.

Additionally, downtown Chicago is set to see the smallest number of new apartments added to the market in over two decades in 2025. This is due to zoning regulations, high construction costs, and a shift in development focus to other areas, likely contributing to rent increases. (chicagobusiness.com)

Landlords should prepare for these changes by reviewing lease agreements, considering property upgrades, and consulting with property management professionals to navigate the evolving market effectively.

Why Are Rents Going Up?

  • More People Want Homes — Chicago is a great city, and many people want to live there. When more people need homes, rents go up.
  • Higher Costs – It costs more to fix and take care of buildings. Landlords have to raise rent to cover these costs.
  • Market Changes — Rent prices are not fixed; they fluctuate continuously. Experts predict a notable rise in the next two years, so landlords and renters must stay informed.

Why Partner with Property Management Companies in Chicago?

Property management companies support landlords with various tasks, including finding tenants, collecting rent, and addressing issues. They streamline the process of owning rental properties, making it more manageable and less stressful.

  • Expert Market Knowledge
  • Faster Tenant Placement
  • Timely Rent Collection
  • Property Maintenance and Repairs
  • Legal Compliance and Lease Management
  • Maximized Rental Income
  • 24/7 Support for Tenants and Owners

How Chicago Ranks Among U.S. Rental Markets

Chicago continues to rank as one of the leading rental markets in the U.S., providing a mix of affordability, job opportunities, and a lively urban atmosphere.

However, landlords and renters must stay informed about rising rent prices and the low housing supply.

  • Strong Job Market – Attracts young professionals and long-term renters
  • High Demand for Rentals – Limited housing supply keeps rental demand strong
  • Competitive Pricing – More affordable than NYC or LA but rising steadily
  • Diverse Neighborhoods – Offers a range of rental options for different budgets

Preparing for Rising Rents: What Landlords Can Do

Land rent prices are expected to rise, so landlords should strategize to stay competitive and profitable. Here’s what you can do.

  • Review Lease Agreements – Lock in long-term tenants at fair market rates before rents rise too high.
  • Upgrade Your Property – Small improvements like fresh paint, modern appliances, and better lighting can increase rental value and attract high-quality tenants.
  • Adjust Rent Strategically—Instead of a sharp increase, consider gradual rent hikes to keep tenants happy and boost your income.
  • Understand Market Trends – Work with a property management expert to analyze rental trends and set the right price.
  • Enhance Tenant Experience – Better customer service, faster maintenance, and upgraded amenities can make your property stand out in a competitive market.

Why Choose KM Property Management?

KM Property Management knows Chicago!

A skilled property manager can help landlords boost their profits, attract quality tenants, and keep their properties in good shape.

Do you have a rental property? KM Property Management helps manage all residential, commercial, multi-unit buildings, and investment properties.

Why Do We Care?

We prioritize your success because we care.

We understand that owning a rental property can be stressful, but we’re here to make the process easier and enhance profitability. Our team strives to:

  • Maximize your rental income.
  • Find reliable tenants quickly.
  • Handle maintenance & repairs hassle-free.
  • Ensure smooth lease management.
  • Keep you updated on market trends.

We treat every property as our own because we care about your investment and peace of mind.

Ready to Succeed in 2025 and Beyond?

As rents increase and the market develops, it is essential to remain competitive by partnering with a reliable Chicago property management team. At KM Property Management, we are dedicated to helping you enhance your investment while ensuring a smooth experience for tenants.

Contact Us Today.