Unlike many big cities, Chicago has a reputation for a relatively reasonable cost of living. Compared to New York, Boston, or Los Angeles both rentals and for sale properties can be surprisingly affordable. When you’re moving here from another city or state, one of the biggest challenges you’ll face is whether to rent or buy in Chicago.
Does it make more sense to choose a less-expensive rental or to make a bigger financial commitment by purchasing a home or condo? Should you shop rentals or real estate listings? Here’s a look at the factors to consider when making a decision about renting vs. buying in Chicago.
How Long Do You Plan to Live Here?
If you already know that you’ll only be in Chicago for a short time or plan to put down roots, that’s important to factor into your housing decision. When you buy, you have the security of a monthly mortgage payment, rather than potentially rising rental rates. On the other hand, buying involves an upfront financial commitment that renting doesn’t require. Generally speaking, one of the biggest benefits of home ownership — a return on investment due to appreciating real estate values — comes over time. On the other hand, when you own a property and decide to move, buying requires a more involved process of listing, showing, negotiating and eventually selling your home. Renting, on the other hand, is as simple as fulfilling your lease and moving on. These are all important considerations as you weigh whether to rent or buy a Chicago residence.
Which Neighborhood Do You Like?
There are lots of different neighborhoods in Chicago, each with its own selling points. If you already know which area(s) you’re interested in, take a look at comparable rates for rentals and purchases. Which option offers lower monthly costs? How many of each type are available? Finding out the vacancy rate or the number of real estate listings where you want to live can help you think through the choice to rent vs. buy in Chicago.
How Much Responsibility Do You Want?
The bottom line is that owning involves more obligation than renting. When you own your home, you not only need to take full responsibility for your bank or mortgage company debt, but you also have to manage all repairs and maintenance yourself. If there’s outdoor space, you need to take care of that, too. You also may have HOA dues or building community fees. With renting, on the other hand, you avoid many of those expenses. If the dishwasher breaks, your landlord has to handle it, not you.
Understanding Your Personal Finances
Buying a home requires a significant down payment, while renting doesn’t even typically require a security deposit in Chicago high rises. If you aren’t ready to put down a significant chunk of change to get your new home, renting can afford you time to save up for a later purchase.
Is it better to rent or buy in Chicago? The decision is up to you, but if you’ve determined that renting will work best, let Downtown Apartment Collective make the process of searching for an apartment easier. We’re here to help you find your next Chicago property, and we have the extensive research and thousands of listings to help you do it. Contact us at your convenience!
