PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE

CONTACT: Micky Horstman (312) 607-4977

Chicago’s average rent now costs $2,200, up over $600 a month in just under 10 years
Rent rose 6.2% during the first six months of 2024

CHICAGO (Aug.15, 2024) – Chicago renters are shelling out more than ever before, with rents rising quickly and unlikely to drop unless the city reforms its stifling regulations.

According to an analysis by the Illinois Policy Institute, rents across Chicago have risen 41% in just under 10 years, with renters now paying an average of $2,200 a month. Average rents for one bedroom apartments are around $1,880 a month across the city, two bedrooms are over $2,400 a month, and three- or four-bedroom apartments cost over $3,000 per month. Rents averaged $1,560 in January 2015.

Rents are only expected to rise. They increased 1.4% in June and have gone up 6.2% in the first six months of 2024. Very low prices on Chicago’s South Side and West Side mask much higher prices in safer and more affluent areas.

The areas with the highest rents per neighborhood include Streeterville, Near East Side and Dearborn Park. The neighborhoods with the lowest rents include Homan Square, West Garfield Park and Austin.

The institute also found roughly half of Chicago renters pay more than 30% of their income for shelter, exceeding the federal limit for affordability. Among the city’s low-income residents, almost 90% pay more than that 30% threshold.

“Rising and record-high rents are making things harder for residents. Chicagoans can’t afford housing costs that are rapidly outpacing inflation and wage growth," said Bryce Hill, director of fiscal and economic research at the Illinois Policy Institute. “Slowing new construction and burdensome regulations have spiked housing costs. Cutting through regulations and government red tape would clear a path to housing affordability in Chicago.”

Experts suggest full deregulation could lower housing prices by as much as 50%. Other reforms to achieve more affordable housing include cutting restrictive zoning and time-consuming permitting, and eliminating costly requirements for construction and aesthetics.

To read more about Chicago’s rising rent costs, visit illin.is/rents.

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.