Class-C apartment operators in Chicago are buoyed by many of the tailwinds bolstering the city’s multifamily market as a whole: limited new supply, rising rent growth and recovering investor interest.
But rising operating costs have squeezed margins for vintage stock harder than their newer counterparts, leaving the affordable market at an inflection point. Insurance, property taxes and utilities have risen faster than rent for older properties.
Owners are battling significant increases in utility and insurance costs, along with higher taxes and interest rates, while facing a shrinking runway for rent increases. Some new investors in the Class-C space over the past several…​