Multifamily Market Update: Logan Square

Located on the northwest side, you will find one of the most talked about up-and-coming neighborhoods – Logan Square. The neighborhood’s boundaries are Diversey Avenue to the north, Pulaski Road to the west, North Avenue to the south, and Western Avenue to the east. Kedzie Avenue runs north-south in the middle of the neighborhood, subdividing it into East Logan square and West Logan square. The neighborhood amenities paired with the market direction highlight the area’s investment opportunity.

Amenities

The amenities of the neighborhood are major drawing points making it one of the City’s trendiest neighborhoods. It offers over 30 parks, playgrounds, and community centers. The Bloomingdale trail and park and Palmer Square Park are the most popular attractions. Milwaukee Avenue provides a wide selection of restaurants, bars, art galleries, and live music. The amenities attract young professionals and families to the area. While it is very much a bustling neighborhood, there are pockets that look and feel like a suburb. 

Market Direction 

Over the past five years, the neighborhood has seen a gradual increase in value, a bullish 42% rise per unit from January 2018 to January 2020. In 2018, there were 45 transactions – up from the market average of 24 transactions per year over the past five years. During the same time, the price per unit average increased from $144,000 in 2015 to $209,643 for the 2019 calendar year. The market offers an opportunity for a value-added investor as the vintage inventory is slowly being replaced by units offering modern finishes. The majority of new development projects over four stories are located along Western Avenue and Milwaukee Avenue.

Rental Rates

There are two rental markets, East Logan Square and West Logan Square. East Logan has a higher concentration of rehabbed and new construction units, and the convenience of three CTA train stops along Milwaukee Avenue and access to the Kennedy expressway within a few minutes. The combination of convenience and luxury finished units pre-covid had demanded higher rental rates compared to West Logan Square. West Logan Square rental rates are increasing depending on if the unit is vintage or has modern finishes.

In 2015, the average rent in  Logan Square was around $885 per month. The current average rent is $1,786, which encompasses vintage and rehabbed units, a 57% increase over the past five years. 

Logan Square Average Rent Ranges:

Source: dumo