Chicago rents, mortgages both on the rise and breaking records

by Liz Hughes

 January 26, 2022

Spurred by rising mortgage costs, December’s average monthly rent grew to $1,877, a 14.1% increase from the previous year and the largest annual jump since February 2019, according to a new Redfin report.

Mortgage payments also saw double-digit percentage growth last month. Nationally, monthly mortgage payments grew 21.6% from the previous year, another record increase.

Redfin chief economist Daryl Fairweather said the growth in mortgage payments has been driven up by rising prices and rising mortgage rates.

“And those rising mortgage costs push more potential homebuyers into renting instead, which pushes up demand and prices for rentals,” he said in a press release. “Mortgage rate increases are accelerating, which will cause both mortgage payments and rent to grow throughout 2022.”

The average Chicago rent rose 9% in December year over year to $2,351, while the average mortgage payment grew 14.3% to $1,168.

The report found rents rose in more than 30% of major metros. And except in Austin, Texas, and Seattle, the top 10 areas with the fastest-growing rent year over year were all on the East Coast. Only Kansas City, Missouri, saw rents decline year over year, down just 0.8%.