CHICAGO-Despite showing some signs of a slowdown, developers say they are not nervous about a rental apartment pipeline totaling more than 8,000 units over the next three years.
The downtown district of Chicago can expect more than 5,300 units coming online in 2013 and 2014, and another 3,000 rental units in 2015, according to the Crain's Chicago Business.
Ron DeVries, vice president of Appraisal Research Counselors in Chicago, says the number of rental units that will come to market over the next few years is significant, given that there are indications that rental volume could be on the decline.
“There clearly are going to be winners and losers,” DeVries says. “We thought that the market was going to be a little more disciplined, but there are still a large number of units that are getting financed.”
Curt Bailey, president at Related Midwest, which is developing the new 500-unit tower at 500 N. Lake Shore Drive, says there is no reason for concern. He notes that the annual increase in demand for downtown housing has averaged between 3,000 to 4,000 units since 1990, which will be more than sufficient to absorb the significant rental supply on tap. See story in Crain's Chicago Business.
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