Top Five Things to Consider for Rogers Park Chicago Multifamily Real Estate in 2022
INTRODUCTION AND OVERVIEW
There are many neighborhoods to consider when looking to make a multifamily purchase in Chicago. Today, we wanted to showcase the top five things to consider when looking at multifamily real estate in Chicago’s far north side neighborhood, Rogers Park. If you have any questions or would like to learn more about the market, please don’t hesitate to reach out to our team for more information, and check out our active listings here.
1. NEIGHBORHOOD CHARACTERISTICS
According to the Chicago Metropolitan Agency for Planning Rogers Park Community Data Snapshot, multi-family housing makes up approximately 93% of the housing for Rogers Park with property types featuring 20 units or more representing the largest sub-type at 38.8%. Within those properties, studio and one-bedroom floorplans represent almost 50% of all unit types. Two-bedroom layouts are the next most common representing approx. 31.6% of all unit types.
Essex Insight: This unit mix is ideal for investors as studio, one- and two-bedroom apartment layouts are typically easier to rent than larger floorplans featuring three or more bedrooms.
2. RENT METRICS
Over the last 30+ years, Essex has collected data on multifamily properties located throughout the Chicagoland area. We have digitized thousands of property operating statements, rent rolls, and transaction sale metrics to create a robust database now capable of analyzing neighborhood trends.
Using our proprietary rental comparable database, we have reviewed average rents and annual rent growth rates for studio and one-bedroom apartments in Rogers Park (zip codes 60626 and 60645). Our data shows that the average yearly non-compounding rental growth rate over the last five years is approximately 4% for studio apartments and 3% for one-bedroom apartments. The average studio rent over the last five years is approximately $891 per month while one-bedrooms are renting for an average of $1,081 per month.
It is important to note that while the average yearly non-compounding rental rate over the last five years shows growth, the average rent for studio and one-bedroom apartments in Rogers Park dipped slightly between 2020 and 2021¹ specifically, likely due to effects from the COVID-19 pandemic. As we continue to bounce back from the pandemic, we expect rents to do the same in 2022.