The Chicago Rental Market and Bankruptcy

Over the last several years things have gotten rough for homeowners. New laws have made it very hard to become a landlord and property values have declined throughout the mortgage crisis as thousands have been forced to file bankruptcy in the midst of massive foreclosure and economic interruption. Naturally then there has been a significant shift to a rental mindset. After all, if property cannot hold its value and jobs are scarce and often require quick movements, people are surely going to desire the low impact route of renting. However, even in large cities with the largest supply of apartments and other rental spaces, scarcity is starting to take its toll.

Via simple supply and demand rents in Chicago have begun skyrocketing. More people, recent graduates and foreclosure victims alike, are seeking apartments over homeownership and flocking to urban centers in an attempt to find that space (and the higher likelihood of finding a nearby job). Meanwhile supply for apartments is remaining stagnant as current building taxes, risks, and construction costs are prohibiting major construction and expansion. Also the downed economy, which on one side is increasing demand for apartment space, is also shrinking salaries making it more difficult for luxury apartments and large spaces to charge the high rents usually necessary to get a new complex to be profitable following its construction and completion. This means that prices increase (negative supply + positive demand = increasing prices). According to recent figures the suburban occupancy rate for Chicagoland has reached 94%, putting any empty space in an extremely desirable position. Generally speaking, landlords can charge whatever they want and feel confident that the market shortage will yield them renters.


Bankruptcy attorneys have also begun to notice in turn that these factors are having an impact on homeowners in the Chicagoland area. As fewer homeowners are able to keep their heads above water, taxes tend to increase on those who can. This also prevents thousands from taking advantage of the depressed prices in the market and buying homes. Property, which is currently unable to hold its value and is of little demand on the open market (relatively speaking) has become a liability rather than an asset. However, the future will likely hold a recovery and a renewed value for land and home ownership. If you are facing high debt and financial distress but want to keep the home you have worked for all your life consider calling a Chicago Bankruptcy Lawyer and saving your property, ensuring that you can stay out of the renting world and keep your own land.

Sam H Pitt is the author of the article on somekeywordSam H Pitt is the author of the article on somekeyword

You have read the best review article categorized by tax attorney and the title The Chicago Rental Market and Bankruptcy. You can bookmark or spread this post by using this URL https://taxattorneytips.blogspot.com/2012/10/the-chicago-rental-market-and-bankruptcy.html. Thank You!