Suburban Chicago Ranks as the Nation's Second Hottest Rental Market

In a rapidly shifting housing landscape, suburban Chicago has emerged as one of the most competitive rental markets in the country. According to a recent analysis by RentCafe, suburban Chicago ranked as the second-most competitive rental market in 2024, highlighting a growing demand for rental housing outside of the city.

Why Is Suburban Chicago So Competitive?

Several key factors contribute to the heightened demand and limited availability of rental properties in the area:

1. Corporate Relocations and Expansions

The influx of businesses relocating or expanding into the Chicago suburbs has significantly increased the demand for rental properties. As more companies set up shop in the area, employees seek housing close to work, creating a tighter rental market.

2. Affordability Compared to Major Metros

Renters are flocking to suburban Chicago because it offers a balance between affordability and accessibility. While urban rental prices continue to soar, the suburbs provide more space at relatively lower costs, making them an attractive option for those looking to stretch their housing budget.

3. High Lease Renewal Rates

The lease renewal rate in suburban Chicago has reached 69.2%, indicating that a vast majority of renters choose to stay in their current homes rather than move. This stability limits turnover and reduces the number of available rental units for new tenants.

4. Intense Competition Among Renters

On average, there are 14 prospective renters competing for every available apartment in suburban Chicago. This level of demand underscores the challenges for those looking to secure a rental in the area, making quick decision-making crucial for hopeful tenants.

What This Means for Renters and Investors

For renters, the competition means they must act fast when a desirable unit becomes available. Having necessary documents ready and being prepared for potential bidding wars can improve their chances of securing a home.

For real estate investors and developers, suburban Chicago presents a promising opportunity. With demand outpacing supply, there is a clear need for additional rental housing to accommodate the growing renter population. Developing new properties or revitalizing existing ones can yield strong returns in such a high-demand market.

Final Thoughts

Suburban Chicago’s rise as a top rental market highlights broader housing trends where more people are seeking affordability, space, and accessibility outside major cities. As demand continues to surge, renters and investors alike must navigate this evolving landscape strategically. Whether you’re looking for a place to live or a property to invest in, suburban Chicago is undoubtedly a market to watch in 2025 and beyond.