Surge in supply could hit downtown apartment rents

Downtown apartment landlords are poised to have another strong year, but a construction boom could make their lives more difficult in 2013 and beyond.

Demand for apartments is booming as more people choose renting over buying, one reason effective rents at the most expensive downtown high-rises jumped 9 percent last year, according to Appraisal Research Counselors, a Chicago-based consulting firm.

But now supply is surging, too, which could limit landlords' ability to raise rents next year or, if demand falters, even force them to cut rents to remain competitive. Downtown developers are poised to complete 1,219 apartments this year and 3,500 in 2013, Appraisal Research Vice-President Ron DeVries said at a luncheon Tuesday.

Read more: http://www.chicagorealestatedaily.com/article/20120215/CRED03/120219882/surge-in-supply-could-hit-downtown-apartment-rents#ixzz1mTMLb9q1