Chicago Rental Price History

Chicago is a stunning city with an amazing skyline, vibrant neighborhoods and a rich cultural
history. Given that the majority of students live in the city a lot of them experience high renewal rates and
rental prices. So why is rent so high in Chicago? To answer this question we need to look at the history of
real estate in the city.

This starts all the way in 1871 after the Great Chicago Fire. Although we had lost lots of our
building infrastructure the city had a chance to rebuild from scratch. This made Chicago a center for
innovation and setting the stage for a powerful industry. However, over the next century, discriminatory
practices like redlining and restricting homeownership took place. Some of these patterns of segregation
are still present today and cause limited affordable housing. Moving towards the 20th century, the city
began to embrace redevelopment but often at the expense of affordable housing because low income units
started tearing down for luxury apartment complexes. Fast forward to today, you can see some
neighborhoods that are now working class communities. Overall, gentrification has also impacted the
housing supply since it drives up demand and prices rise along with it.

Adding onto that, inflation, high interest rates and rising property taxes contribute to the increase
in rental prices. Even with recent events like COVID has put a lot of pressure onto the housing market. So
when we ask ourselves “Why is rent so high?” It’s not just about the current status of the market but
rather all the decisions of our past that have influenced it like segregation, disinvestment, interest rates,
and gentrification. Knowing all of this can help us better advocate for inclusive housing policies, strong
rent control, and more affordable housing projects. This awareness is essentially the first step in shaping
where we go in the future because the decision and direction of the housing market is in our hands.