How Much Should I Save For An Apartment in Chicago in 2024
If you’ve asked yourself, “How much should I save for an apartment?” you’ve come to the right place. Preparing financially is essential before taking the plunge and beginning the apartment hunt. In this post, we’ll examine vital considerations so that you can set yourself up for success and secure your dream apartment.
How Much to Save for an Apartment
Prior to signing an apartment lease, it’s crucial to have enough for rent, savings, and additional costs.
Rent can vary drastically depending on many factors, including your apartment’s location, size, and construction. Right now, the average monthly cost for a Chicago apartment is $2,309, and the average apartment size is 750 square feet.
When it comes to having enough in your savings account, the general recommendation is to have three to six months’ worth of expenses.
Here are additional upfront costs that you may need to dish out during the moving process:
- Moving expenses: Whether you plan on hiring professional movers or renting a U-Haul, you’ll probably need to budget for transporting your goods to your new digs.
- Furnishings: These costs also vary by situation, but you’ll want to account for what items you need to purchase to ensure your apartment is move-in ready. This might include furniture, appliances, or decor.
- First and last month’s rent: Landlords or property managers commonly require new tenants to pay the first and last month’s rent before moving in.
- Security deposit: Often, renters are also asked to put down a deposit as a form of financial protection for the landlord in case the tenant causes damage to the property beyond normal wear and tear or fails to fulfill other financial obligations specified in the lease agreement.
- Utility bills: When obtaining an apartment, your lease agreement will lay out the utilities that the tenant is expected to pay. This often includes electricity, gas, Internet, water, and sewer/garbage.
- Other living expenses: As you prepare your budget, don’t forget costs beyond your apartment. These can include groceries, activities, fitness, transportation, and medical expenses.
Rental Market Trends in 2023
In an unprecedented development spanning two decades, Chicago has witnessed the highest growth in apartment rents among major rental markets across the country over the past three quarters, as indicated by CoStar Risk Analytics.
The Windy City has experienced a 3.6 percent increase in rental rates since August 2022, surpassing the national average of 1.2 percent and outpacing the figures observed in more than 20 major metropolitan areas.
Expectations for 2024
The CoStar Risk Analytics national forecast suggests that Chicago apartment rental prices can expect significant hikes in early 2024.
With this prediction in mind, consider renting before the new year. Also, while winter may not present ideal moving conditions logistically, this time of year often means lower rental prices.
Now that we’ve helped answer, “How much should I save for an apartment?” we hope you feel equipped to begin the saving journey.
If you’re ready to start exploring apartments, get in touch with our knowledgeable team of brokers today!
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