While cataloging each street of Chicago’s northside multifamily market on foot, I have seen market trends and changes firsthand. As an expert in Chicago’s Edgewater, Uptown, and Andersonville neighborhoods, I have compiled the biggest and most impactful changes and trends I have seen in these areas. All data is from CoStar.
Multifamily Real Estate proves resilient in these areas, even during trying times.
The Multifamily market has shown resilience through a global pandemic, while many other markets and asset classes have suffered. For Chicago’s Northside multifamily market of Edgewater, Uptown and Andersonville, the average vacancy rate has not exceeded 7.2% since 2015, and looks almost unaffected by a global pandemic, showing below 5% for all of 2020. The demand for rental properties is certainly remaining strong.
In addition, market rent per square foot has also been steadily increasing- with only a small dip in 2020. Multifamily rents are now up to an average of $2.06 per square foot, which is the highest these neighborhoods have seen in the past decade.
Alternatively, if you look at vacancy in Lincoln Park and Lakeview, these areas saw vacancy spike to almost 10% (9.9%) during 2020.
Building and Renovating
After cataloging each street on foot, one thing became apparent about the northside multifamily market; every few blocks you were sure to stumble upon either a new construction project or a large renovation underway. From projects like Bridgeview Bank and Platform 4611, reputable developers are capitalizing on the demanding rental market. Even your smaller walkup buildings are getting improved left and right. Both large and small owners in these areas have been investing more heavily in their buildings. Due to many tenants continuing working remotely, a number of building owners have added outdoor space and improved common area amenities.
The new Peterson-Ridge Metra station is currently under construction and slated for completion in 2023. This will offer improved transportation to residents of Edgewater and the surrounding areas. Improved transportation means only more will be attracted to the area based on convenience and ease of transportation, which increases the likelihood of a boost in economic activity.
Renovations are also currently underway on the CTA lines from Lawrence to Bryn Mawr as part of a large-scale modernization project. The initial phase of the project will completely rebuild the Lawrence, Argyle, Berwyn, and Bryn Mawr stations. This also includes all the tracks and support structures for more than a mile adjacent to the stations. While this work has proved challenging for residents as well as businesses nearby the affected stops, ultimately these new stations should make up for any lost convenience or economic activity once the project is completed.
Overall, the Edgewater, Andersonville and Uptown markets are hot – both for investors and sellers. The demand for housing is strong, rents have been increasing, and added and improved transportation are uniquely positioning these areas for continued Multifamily profitability.
**Data is from CoStar.
Blog written by Kiser Group Advisor, Katie LeGrand.