Top performing submarkets over the last 12 months include the disparate Chicago's Gold Coast and South Shore neighborhoods, Joliet and Schaumburg. At the other end of the spectrum, Chicago's West Side, McHenry County, Wheeling and Woodridge/Lisle submarkets posted the greatest losses in occupancy as well as drops in effective rent growth.
Overall, Marcus & Millichap predicts vacancy rates will drop 30 basis points to 7% as job growth resumes after three straight years of losses. "When the effects of renewed job growth become evident in late 2004, the apartment market will begin to recover, with many submarkets postings slight declines in vacancy rates and marginally higher rents," according to the report authored by senior market analyst James D. Holt. "Prices will continue to rise as buyer demand for assets in strong locations remains high."
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