KEY FINDINGS

There has been a slight, continued improvement in stabilized December rent collections (i.e., collections above 95%).

  • More than half (58%) of respondents indicated they have received greater than 95% of collections (a level considered stable by the industry) for the month of December 2021.
    • This is a slight increase over the number (55%) of respondents who indicated this level of collection in September 2021, and a significant increase over the number in June 2021 (49%).

There continues to be a significant group of owners who indicated their buildings are at risk of foreclosure (i.e., collections below 85%).

  • 21% of respondents indicated they have received less than 85% of collections (i.e., they risk foreclosure) for the month of December 2021.
    • This is about the same number of respondents (30%) who indicated this level of collection in September 2021.

While the overall numbers are much better, there are marked differences between the situation on the north side and downtown and the situation on the south and west sides.

  • 88% of respondents on the north side and downtown report stable collections (above 95%), while only 47% of those on the south and west sides continue report collections at this stable level.
  • 93% of respondents on the north side and downtown report collections above 85% (the threshold at risk of foreclosure), while 30% of those on the south and west sides are still reporting collections that place them at risk of foreclosure.

Housing providers are facing significant increases in expenses, but are not planning on commensurate rent increases.

  • Most respondents report increases of 4% or more.
    • 34% report increases of 10% or more.
    • 20% report increases of 7–9%.
    • 31% report increases of 4–6%.
  • Most respondents anticipate rent increases of 4% or less.
    • 34% anticipate rent increases of 3–4%.
    • 29% anticipate rent increases of 1–2%.

About the Survey

The Neighborhood Building Owners Alliance (NBOA), in cooperation with its affiliate members, and Essex Realty Group, Inc., conducted an online survey of more than 175 Chicago housing providers to determine the current status of neighborhood rental housing in the City (and surrounding MSA). The survey was conducted October 18th through October 28th, 2021.

As a continuation of several quarterly NBOA surveys conducted since October 2020, this survey collected important data on rent collections and the neighborhood housing landscape since the onset of the COVID-19 pandemic. The survey also asked the respondents about the type of buildings they owned, the size of their portfolio (by number of housing units) and the location of those buildings.

Profile of Survey Respondents

The respondents collectively own approximately 30,000 rental units throughout Chicagoland. As was the case with previous survey iterations, over two-thirds (approximately 72%) of the respondents consisted of small- and mid-sized housing providers who own fewer than 100 rental units and/or own ten (10) or fewer buildings. Further, almost half the respondents (47%) reported owning five or fewer properties. As such, this survey is representative of Chicago’s smaller to medium-sized housing providers who make up the bulk of the City’s rental housing stock.