Apartment rents are going up

It stands to reason that, as the housing market slows, more and more people are renting. Many are would-be first time home buyers that just aren't ready to make the leap yet. Still some are homeowners that are choosing to return to renting for various reasons (that is the subject of a whole other post.) In any case, as the demand for rental units rises, so then does the cost of renting.
Nationally rents rose again during the second quarter with the Western US leading the way. Over time that has begun to hit renters where it hurts. Rising apartment rents have put a crimp in renters' budgets, according to data from Apartments.com. A recent survey taken on the website showed more than 60 percent of respondents spending more than the recommended percentage of their income on rent, with 20 percent devoting more than half of their annual salary on rent.
As for Chicago, if rents continue to rise, it is reasonable to think that we may again see an rise in home sales--just as we did in the "boom years" of 2001-2005. However, with more and more restrictions in the mortgage industry, first time buyers will probably not be given as much financial latitude as they had during the boom. So, while you may be renting now, be sure you are building up some savings for a down payment!