While the south side of Chicago has made headlines for its sale velocity and fast building appreciation, the west side offers a very similar multifamily product and investment profile. In particular, East Garfield Park, Austin and Humboldt Park are neighborhoods that should be on your radar.
East Garfield Park
Known for being the home of the Garfield Park Conservatory, the neighborhood is only 4.5 miles west of the Loop. The neighborhood has a population of 19,996 and over 60% are renters. The United Center is just over a mile east of the area. With seemingly endless investments and developments pushing west, it is only a matter of time before it reaches East Garfield Park. The neighborhood is well connected to the city via I-290, the CTA Green Line stops at Kedzie and California and Blue Line Kedzie-Homan Stop. A typical unrenovated two-bedroom unit rents between $850 & $1,100, and a renovated two-bedroom unit rents between $1,100 and $1,300 per month.
Located on the west side of the city and seven miles from the Loop, Austin is home to 95,260 residents. Over 50% of residents in the neighborhood are renters and the average household has more than two people living in it. An unrenovated two-bedroom unit rents between $800 & $1,000. A renovated unit, while less common in the market, rents between $1,000 & $1,200 per month.
Just north of East Garfield Park is Humboldt Park, a historically Puerto Rican community. The neighborhood is just shy of seven miles from the Loop and home to its namesake 126-acre park. Another neighborhood amenity is The 606, which is elevated trails for runners and cyclists. Humboldt Park has a population of 56,427 and 55% are renters. An unrenovated two-bedroom unit rents between $800 & $1,100, and a renovated two-bedroom unit rents between $1,100 & $1,400 per month.
These west side neighborhoods are a long-term investment play. Apartment investors can enter the market now with high cash flow buildings and also experience healthy appreciation. For those chasing yield, East Garfield Park, Austin and Humboldt Park have plenty of inventory worth looking at.