Newsflash: Rental market slowing down (Chicago Area)

Hi folks,I’ve recently been seeing a lot of vacancies around where I live. Units have sat all summer and now I am seeing a free month of rent or no security deposits deals for large buildings.The luxury housing market has been slow bordering on dead for at least the last year in Chicago. Prices have not been cut though, only listings pulled from the market. When you look at income ratios and housing prices they are just insane, and it’s not even as bad here as on the coasts.I see a similar theme on bigger pockets forums and other real estate sites of hot areas and people not renting out their units or it taking months to do so. It seems like this is going on at a national level. I also think people are just not accepting prices can go only so far with no wage growth. This will be especially true for the rental market. The housing shortage is being caused by people not being able to afford to trade up and now it looks like the same trend has hit the rental markets.In my opinion, it won’t be bad loans that cause a market correction, but wages and people’s ability to literally pay for housing, be it ownership or rental. What have folks been seeing where they live? Has it been tougher to find tenants? Have rent prices finally exceeded the ability of most folks to afford them? That’s the way it looks here in Chicago.It really looks like the slowdown is already here. Price drops on everything in the market now, including rentals. Are others seeing that where they live or is it Illinois and their financial problems and this is isolated?



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