Millennials Struggle to Afford Downtown Prices

Chicago’s CBD has generated many jobs, and many new apartment towers have sprouted alongside new office properties, but many job seekers struggle to afford downtown living.

CHICAGO—Job growth has soared in many downtowns as major employers like McDonald’s in Chicago and GE in Boston relocate their headquarters from the suburbs to city cores to attract tech-savvy Millennial talent. As a result, new office jobs and residential development in and near CBDs increasingly go hand-in-hand. But in spite of the construction boom, many still struggle to afford apartments near their jobs, especially Millennial renters, who make up more than 70% of the survey respondents.

Less than 17% of over 2,000 renters recently surveyed by RentCafe said they live close to their most-desired location, which for most is near their job, ahead of living close to friends and family, or near entertainment, dining, shopping or a gym. Furthermore, 43.2% of respondents said they could only afford a maximum of $100 more to live in their preferred location, and another 16.4% could not afford any such increase. The cost of rent was the top concern of those surveyed.