Receiving a lease renewal with a higher monthly rent can leave you wondering whether the increase is reasonable or if it is time to start looking for a new apartment. While it is easy to focus on the dollar amount, the better question is whether your renewal still represents a good value in today’s market.
Chicago’s rental market changes throughout the year, and pricing can vary significantly from one neighborhood to the next. Even apartments within the same building can lease for different rates depending on floor plan, views, lease length, and when you started your lease. Before renewing your lease here’s how to compare your renewal offer to what’s currently available.
Compare Your Renewal to Similar Apartments
Many renters begin by comparing their renewal rate to the average rent across Chicago. While citywide averages provide general context they rarely tell the full story. A one bedroom apartment in River North is not directly comparable to a one bedroom apartment in Lincoln Park or Lakeview. The age of the building, the quality of the finishes, the amenities, time of year, and the location all influence rental pricing.
If you live in a downtown luxury apartment, you should compare your renewal to similar apartments in the same neighborhood rather than to the citywide average. Looking at comparable buildings gives you a much more accurate picture of whether your renewal is competitive.
Right now many downtown neighborhoods generally fall within the following price ranges for one bedroom luxury apartments (including concessions, or “free month” specials):
| Neighborhood | Typical Starting Rent |
|---|---|
| River North | $2,700 to $3,500 and up |
| Streeterville | $2,700 to $3,400 |
| West Loop | $2,600 to $3,300 |
| Gold Coast | $2,500 to $3,400 |
| South Loop | $2,300 to $3,000 |
| Lakeshore East | $2,700 to $3,500 |
These figures change throughout the year, but they can be a good starting point when evaluating your renewal.
Why Renewal Rates Increase
Many renters are surprised to learn that new residents sometimes pay less than current residents. This difference often comes down to leasing strategy. Apartment buildings frequently offer move in specials to attract new residents. One or two months of free rent can significantly reduce the effective monthly cost of a lease. Renewal offers typically do not include these concessions because the specials are designed to attract new leases rather than retain existing ones.
Rental rates are also influenced by demand, occupancy levels, operating expenses, property taxes, and seasonal leasing trends. A building with very little vacancy may have little reason to offer aggressive renewal pricing. An increase does not automatically mean your apartment is overpriced, but it is always worth comparing your options before making a decision.
When Renewing Makes Sense
Renewing your lease can be the right decision for you, even if your rent increases.
Moving comes with its own costs and if your apartment still represents good value and you enjoy where you live, renewing may be the most practical choice. You might also decide that staying is worthwhile if you enjoy your building’s management, amenities, location, and community. Familiarity has value, especially if your apartment already fits your lifestyle and daily routine.
When It May Be Time to Move
A lease renewal also creates an opportunity to evaluate whether your current apartment still meets your needs. If you’ve recently gotten a pet since your last apartment hunt, that can drastically change whether the current apartment, amenities, and location fit your current needs. Maybe your commute has changed or maybe you now work remotely and would benefit from a larger floor plan or dedicated coworking space. In some cases, a newer building may offer similar pricing while providing upgraded finishes, additional amenities, or a better location. Current leasing specials can also make moving more affordable than many renters expect.
Look Beyond the Monthly Rent
Monthly rent should never be the only factor in your decision. A building offering one month free on a twelve month lease may have a higher advertised rent but a lower effective monthly cost. It is also important to consider what is included in the overall living experience.
Modern apartment buildings often include fitness centers, coworking spaces, rooftop pools, outdoor lounges, pet amenities, package services, and other conveniences. Depending on your lifestyle, these features may provide enough value to justify a modest difference in rent. Comparing apartments based only on the advertised monthly payment can overlook important differences that affect your day to day experience.
Compare Before You Commit
Even if you expect to renew your lease, comparing your apartment to a few similar options is a smart step before signing another year.
In many cases, renters discover that their renewal remains competitive. Other times they find newer buildings, stronger amenity packages, or attractive move in specials that make relocating worthwhile. At Downtown Apartment Collective, we help renters compare their renewal offers with current availability across hundreds of luxury apartment buildings throughout River North, Streeterville, Gold Coast, the West Loop, South Loop, Lakeshore East, and other downtown neighborhoods. Sometimes renewing is the best decision. Sometimes moving opens the door to a better apartment for about the same monthly cost. Before you sign your next lease, it’s worth taking a look at what the current market has to offer, so even if you do end up renewing you can have the peace of mind of knowing you picked the best option for you.
