2019 Aurora IL Real Estate : What Will Rents Be?
What Will Aurora, IL Rents Be At In 2019?
Has the window to sell for top dollar passed?
Using Zillow.com as a resource, the Chicagoland suburban market has not crested only to fall. In fact, depending upon the zip code and target market (first time homebuyer, 2nd time homebuyer, downsizer, etc.), the general Aurora real estate market is seeing a 2-3% annual increase in sale price and this is expected to continue.
What about rents for the Aurora, IL market? Has the bubble burst?
Well, yes. Not so much a bubble bursting as it has been a slight correction in rental amounts. Let’s use the graph, below, as an example (source : Zillow.com). Check that green-dotted line for Aurora, IL. This seems quite accurate! A general acceleration in rental price from 2009 to 2013, some speculation from 2013 to 2015, with one more bubble in late 2017 signifying the entry of institutional dollars driving up rents.
So, heading into 2019, after a flat-lined 2018, we are starting to see an uptick. But…will it continue?
Why will rents continue to increase in 2019?
Simply stated, with a debatable trade war with China, negative press about Illinois politics, and the Federal Reserve expected to raise rates two more times in 2019, it is expected that homeownership will take a soft beating. This doesn’t mean we will see large increases in rent in the general Aurora area, but, I would anticipate rents on single family homes to see a moderate gain in line with sales increases at 2% to 3% annually.
Should a real estate investor consider buying investment property in 2019 with this information?
Well, that’s up to the individual investor. In my opinion, with mortgage interest frothy and rents in line with projected sales prices, this seems to be a fairly neutral year to make a strong dollar in short term rental real estate in the Aurora, IL area. However, long term “buy and hold” investors never lose (10+ years or more to hold) unless the make some MAJOR mistakes in understanding the financials.
If you are interested in learning more about investment single family rental homes in the greater Aurora, IL area, start your search here.