Evanston’s apartment management companies expect lower-than-normal rent increases next year, a trend one city official attributed to a weak economy and a soft local rental market.
Several leasing companies near campus said they expect to increase rents by less than 5 percent for contracts that begin Sept. 1. One survey of 93 Evanston apartment buildings found an average rent increase of less than 2 percent this year.
These projected increases compare with 2.1 percent last year and 4.2 percent in 2001, according to a survey of the Evanston rental market by Arthur Goldner & Associates, a Northbrook, Ill., real estate firm.
“The increase in rent is smaller this year compared with the last due to the large number of vacancies in rental apartments,” said James Wolinski, the city’s director of community development.
The survey also found a citywide apartment vacancy rate of 7.9 percent last year, compared with 3.8 percent in 2001.
Ben Cherry, Associated Student Government’s external relations chairman, said the smaller rent increases will benefit students planning to live off campus next fall.
“Most students look for housing based on their friends’ recommendations,” Cherry said. “If the rent suddenly increases by a large amount, then you may suddenly be outside their budget.”
A building boom in downtown condominiums — which are sold instead of rented — has opened up apartments and saturated the rental market, Wolinski said.
Church Street Station and Optima Towers opened last year, and the 28-story Optima Views is under construction near Maple Avenue and Church Street. Optima Inc. also has proposed a 36-story tower on Elgin Road west of Sherman Avenue.
To lure more renters to the area, the landlords of several buildings — including Evanston Place and a number of buildings owned by Wilmette Real Estate and Management Company — are currently offering security deposit waivers and free or reduced rent for the first month.
“I have not seen such measures before,” Wolinski said. “It’s unprecedented in Evanston history.”
Andy Scott, a managing broker for North Shore Apartments and Condos, said his company would only raise rents about 2 to 4 percent. North Shore rents apartments at 2212-26 Sherman Ave., 2210-22 Maple Ave. and 1600 Hinman Ave.
“The demand is soft,” Scott said. “The reason behind it is low interest rates. For those with stable jobs, they prefer investing in ownership rather than renting a place.”
The Park Evanston, 1630 Chicago Ave., also plans to increase rents 2 to 4 percent for next fall’s leases.
Evanston Place, 1715 Chicago Ave., has already increased rent 2 to 3 percent this school year but has no plans for another increase soon, said Alisa Singletary, the building’s community manager.
“Raising rents now is a bad choice,” Scott said. “Not every apartment was filled (this year). Owners should aim to fill the building rather than trying to make more from raising rent.”
Cameel Halim, the president of Wilmette Real Estate, said he did not plan to change rental rates. His company owns several buildings, including the Carlson Building, 636 Church St.
“The market is soft this year, the job market is not very good and we had a slow winter,” Halim said. “The lower rental is good for all prospective tenants. It’s a bonanza for everyone.”
Bernsen Management’s Willard Apartments, 1901 Sherman Ave., will not raise rates for current residents who renew their leases but plans to increase new tenants’ rent by 1 percent, said Barry Bernsen, the company’s owner.
Weinberg sophomore Deanna Williams, who has booked an apartment with her friends for the fall, said she found the price manageable.
“I think the small increase in rent is good considering we are not paying as much as during the competitive market,” she said.
Zachary Ernst, a Communication sophomore, said the rent increases will still be rough for college students who are living on tight budgets.
“The increased rent sucks, but that’s business,” he said.
