Edgewater is a Chicago neighborhood that should be at the top of any real estate investor’s list of places to invest in multifamily. While other neighborhoods on the North Side have dealt with crippling vacancy rates and delinquency this year, Edgewater landlords have remained largely unscathed by the effects of COVID-19. The area also has seen a growing renter base and new developments.
The rental market has softened during the pandemic. While occupancy and collections vary from building to building; however, the vast majority of Edgewater landlords have said they haven’t had many issues collecting rents. The highest vacancy I’ve heard for Edgewater specific properties has been 10%, which is far less than the 25-35% these same landlords have said about Lakeview and Lincoln Park properties. This makes sense as rental trends show a preference for more space and more affordability. $1,350 in Edgewater can get you a large, condo-quality one-bedroom unit.
Growing Renter Base
Loyola University sits at Edgewater’s northern border, and as a result, students looking for off-campus housing have found a quiet and affordable home in Edgewater. With many Chicagoans tightening their fiscal belts, Edgewater has benefited from the migration of renters coming from Lakeview and Lincoln Park.
Dozens of new construction and fully gut-renovated buildings have been recently completed or will be delivered in 2021, such as the Edge on Broadway and the Edgewater Medical Center, meaning residents can enjoy luxury living conditions near the Lake for far less than they would closer to the Loop. Investors have begun realizing this, which is reflected in the compressed cap rates and higher prices per unit seen in the sales market.
Edgewater is attractive to multifamily investors because of its stability, growing renter base and neighborhood development. Please give me a call at 773-293-5005 if you would like to speak further about Chicago’s Edgewater multifamily market.