Chicago Apartment Rent Creeping Higher—Median Now $1,670

By Don DeBat

Renters hunting for an affordable apartment in a nice North Side Chicago neighborhood this spring may be in for some sticker shock.

Between February of 2025 and February of 2026, Chicago’s median rental prices rose more than many other major cities, according to a national survey by Axios Media, Inc. The survey is based on new leases signed each month in 54 metro areas with at least one million residents.

Chicago’s median apartment rent rose 4% to $1,670 a month over the past year—faster than in the other nine largest U.S. cities. That’s still 34% lower than New York City which now has a median rent of $2,245. Los Angeles posted a median rent of $2,167 a month, and Washington, D.C. hit $2,122 a month.

Rents increased in 20 metros, mostly in the Northeast and Midwest. Virginia Beach on the East Coast increased the most, by 5.3%. Rents decreased in 34 metros, mostly in the South. Austin, TX decreased the most, by 5.9%.

Axios noted that housing is unaffordable for many Americans. A new Harvard University report finds a record number of renters are “cost-burdened,” spending more than 30% of their gross income on rent and utilities. U.S. median rent on new leases now is about 20% above pre-pandemic levels, Axio reported.

Of course, this high-cost result is not totally the fault of greedy landlords. In Chicago, rental property owners have to deal with the second highest property taxes in the nation, along with soaring insurance costs.

The Homefront column recently reported that one Old Town 4-flat owner was hit with a 21% property tax hike, and a 59% increase in fire-insurance premiums. Another small “Ma-and-Pa” landlord in North Lincoln Square was slapped with a 30% tax hike. And, a 3-flat owner in Logan Square is still reeling from a 31.7% tax hike.

6%-plus rent hikes coming?

Pinched North Side lakefront apartment landlords say they likely will be forced to raise rents at least 6% this spring to keep their building bank accounts balanced.

One Lincoln Park landlord is asking $4,000 a month—up 12% from $3,570—for a nice 2-bedroom plus den, 2-bath unit with private deck. Other landlords with vacant units are opting for a total cosmetic beauty makeover.

Off the lake, north of the rapidly gentrifying Lincoln Square neighborhood, a long-time owner heeded his Realtor’s advice. He invested $20,000 to cosmetically rehab a 2-bedroom unit with new bath fixtures, vanity and tile, and an updated kitchen with stainless-steel appliances and modern ceramic-tile flooring.

After a complete repainting, refinished oak floors, and installation of modern ceiling fans and new Levelor blinds, the base monthly rent was increased more than 30% to match the property’s whopping real estate tax hike. It may take 2.5 years for the landlord to recoup his investment, but he is looking ahead to pay for inevitable future tax increases.

Gloomy future of renting 

Here are some of the gloomy points of the Axios survey, and other facts covering the Chicago area and the nation:

• Chicago’s rental share was 53% in 2023, according to the Institute for Housing Studies at DePaul University. That means that more than half of the folks in the Windy City rent apartments.

•  More people are renting in Chicago and other metro areas partly because home-buying remains out of reach. And, strong demand for apartments nationwide is keeping rents from falling much further.

• Despite a weekly menu of burgers and franks and beans, renters are not home buyers because they simply don’t earn enough to save for a down payment, 6%-plus mortgage rates are too high, and their credit score may be too low.

•  The supply of affordable housing in Chicago has not kept up with demand, forcing more renters into housing they can't afford.

• Fewer people move in the colder months and Chicago isn't quite seeing those spring temperatures. Expect rents to climb as the peak summer season nears, Axios predicted.

Axios noted that rental markets are tighter in the Midwest, Northeast and parts of the West Coast because these are regions where building is harder, largely due to zoning restrictions and a lack of space.

Maybe it’s time for Chicagoans to relocate to the Southland?

For more housing news, visit www.dondebat.biz. Don DeBat is co-author of “Escaping Condo Jail,” the ultimate survival guide for condominium living. Visit www.escapingcondojail.com.