May 08--Degree in hand and their professional lives just starting, college graduates moving to Chicago this summer may find those starting salaries don't stretch as far as they thought.
In popular city neighborhoods up and down the lakefront and even areas farther west that have been branded as "hot" by millennials, the median rent for a one-bedroom apartment advertised in April ranged from $1,200 a month to $2,000, according to rental site Zumper.
That could be a bit of sticker shock for graduates who may have started looking online in February. The winter move-in specials are gone, rents are higher and a more wallet-friendly environment won't reappear until fall. A $1,400 studio in February may be $1,600 by summer.
The advice from leasing agents to college grads: Temper your expectations and, independent as you may be, be ready to tap mom and dad for assistance.
New buildings loaded with amenities have opened downtown, but those posh pads come at a price. "It's very hard to find a newer one-bedroom apartment for less than $2,100 and a two-bedroom for less than $3,100 or $3,200," said Aaron Galvin, owner of Luxury Living Chicago Realty. "It's expensive to live downtown right now, it really is."
Nearly 3,000 apartments are expected to be added to downtown Chicago's supply this year but the influx doesn't mean that apartment seekers will necessarily find bargains at older buildings nearby. Landlords with buildings that are just 5 to 10 years old are keeping up with the Joneses, making upgrades to their units and common spaces, and pushing up rents.
"It's a copycat world," said Jon Perlman, of State Street Properties Chicago. "If you're raising your rent, we're raising our rent. I compare it to gas stations. You're not going to have one station charging $3.49 and another $2.99."
One upside to consider about older buildings without opulent amenities is "they offer more square footage," said Elizabeth Moreno, a leasing specialist with Vesta Preferred Realty. "That's the downside with the newer buildings that (clients) aren't liking."
Outside of downtown, Bucktown, Wicker Park and Logan Square are highly sought after by young adults. But those neighborhoods don't have many high-rises or large courtyard buildings with vacancies, which means a shortage of one-bedroom units and higher rents than a year ago. In Logan Square, for instance, which includes Bucktown, the median rent for a one-bedroom apartment advertised in April was $1,350 a month, compared with $1,225 in April 2014, according to Zumper
The June opening of the 606, Chicago's newest park and trail system, also is driving up demand and rents and residential building activity near the trail. Other transit-oriented developments are underway near CTA bus and rail stops.
With the rental market as strong as it is, leasing agents say that college grads striking out on their own should stay flexible, not expect to get everything on their wish list and remember it's an annual lease, not a lifetime.
It also may mean considering condominiums as a rental option, but one to go into with eyes wide open. There may be high move-in and move-out fees charged by a building's homeowners association and its board may need to approve the application. Sometimes a condo-owner-turned-landlord can be more flexible than a management company but "you're dealing with one landlord and the landlord could be great or the landlord could not be great," said Carolyn Ridge, owner of Live Here Chicago.
Leasing agents warn that college grads shouldn't be surprised if their parents need to act as co-signers on the lease. Management companies want to ensure that the unit will be maintained properly by someone living on their own for the first time and that the rent will be paid. That also means that roommates should make sure each person is creditworthy beforehand.
"It's sort of a Catch-22 for the college student," Ridge said. "They're accepting that position but they're new in that position. We get a lot of people in our office where they're coming in with their parents."
mepodmolik@tribpub.com
