Class A Shows Rent Growth

Class A is where it’s at, according to top Reis analyst Brad Doremus. Despite somewhat higher vacancies, Chicago’s Class A properties have bolstered the metro’s apartment market relative to the lower quality B and C properties. Year-over-year asking-rent growth for Class A properties has continued to top that of B and C properties, though the gap has slimmed considerably relative to a few years ago. As of Q2 2010, year-over-year  rent growth for Class B and C buildings was at negative 0.4%, below the 0.2% fall in asking rents for Class A apartments. Yet the difference in growth on the downside has shrunk relative to the  1.9% difference in growth that was recorded in Q4 2006. Quarterly growth was the same for both classes in Q2 2010 (+0.3%), though Class A growth was considerably better in Q4 2009.

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