Inner city pressure: Declining homeownership and shifts to urban centers have helped the industry

The Apartment Rental industry in Illinois is poised to return to levels not seen since prior to the subprime mortgage crisis. A number of factors have contributed to industry's growth over the five years to 2017, including a declining homeownership rate, a declining rental vacancy rate in Illinois and a decline in the number of owner-occupied units. Additionally, rent affordability is declining across the state, and rent-burdened individuals are contributing larger portions of their income to cover rents. As demand in Illinois catches up to supply, rents will trend more toward the national median. However, improving economic conditions will help others purchase a home, thereby sapping demand from lessors of apartments...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
0.5%
Forecast Growth 17-22
Profit
Employment
12,866
Businesses
3,545
What Our Customers Say

Industry Threats & Opportunities

  • Construction of new apartments has stayed ahead of demand, which has depressed average rents
  • Increased demand from the millennial demographic has benefited industry revenue growth
  • Higher incomes will leave tenants with more money after accounting for living expenses
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2017, operators in the Apartment Rental industry in Illinois have experienced some growth. Small operators comprise 48.0% of the industry; many of these are individuals who rent out spare rooms in houses, secondary residences or homes converted into apartment units. Additionally, the structure of the industry is changing. Though large institutional investors have spearheaded growth through purchasing formerly distressed properties and converting them into rental units, smaller investors are now supplying the remainder of rental units demanded. According to a new study published by ATTOM Data Solutions and Clear Capital, 79.0% of all landlords now own only one to two properties. Moreover, the share of nonowner-occupied properties rose from 32.0% in 2015 to 35.0% i...purchase to read more.

    Additional Insights for the Apartment Rental in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Apartment Rental in Illinois Industry are

  • Financial structure of the company
  • Management of a high-quality assets portfolio
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Rental vacancy rates and Homeownership rate in Illinois in the Apartment Rental in Illinois industry impact industry performance..

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    What is the Apartment Rental in Illinois Industry?

    Operators in this industry act as lessors of buildings used as residences or dwellings. Industry participants are owner-lessors of residential buildings and establishments that rent real estate and then act as lessors by subleasing it to others. In addition to apartment rentals, the industry also includes single-family homes and town houses.

    Industry Products
  • Single units (attached and detached)
  • Two to four units
  • Five to nine units
  • 10 to 19 units
  • 20 to 49 units
  • 50 + units
  • Condominiums
  • Manufactured homes and cooperatives
  • Industry Activities
  • Renting or leasing residential buildings
  • Renting or leasing residential dwellings
  • Similar Industries
  • Commercial Leasing
  • Storage & Warehouse Leasing
  • Land Leasing
  • Property Management
  • Apartment Rental in California
  • Commercial Leasing in California
  • Storage & Warehouse Leasing in California
  • Apartment Rental in New York
  • Commercial Leasing in New York
  • Storage & Warehouse Leasing in New York
  • Commercial Leasing in Illinois
  • Commercial Leasing in Texas
  • Apartment Rental in Texas
  • Apartment Rental in Florida
  • Commercial Leasing in Florida
  • Apartment Rental in Massachusetts
  • Commercial Leasing in Massachusetts
  • Commercial Leasing in Ohio
  • Apartment Rental in Ohio
  • Apartment Rental in Pennsylvania
  • Commercial Leasing in Pennsylvania
  • Apartment Rental in New Jersey
  • Commercial Leasing in New Jersey
  • Commercial Real Estate in New Jersey
  • Apartment Rental in Georgia
  • Commercial Leasing in Georgia
  • Commercial Real Estate in Georgia
  • Apartment Rental in Michigan
  • Commercial Leasing in Michigan
  • Commercial Real Estate in Michigan
  • Apartment Rental in Wisconsin
  • Commercial Leasing in Wisconsin
  • Commercial Real Estate in Wisconsin
  • Apartment Rental in Washington
  • Commercial Leasing in Washington
  • Commercial Real Estate in Washington
  • Apartment Rental in Virginia
  • Commercial Leasing in Virginia
  • Apartment Rental in Tennessee
  • Commercial Leasing in Tennessee
  • Apartment Rental in Missouri
  • Commercial Leasing in Missouri
  • Apartment Rental in North Carolina
  • Commercial Leasing in North Carolina
  • Storage & Warehouse Leasing in North Carolina
  • Apartment Rental in Minnesota
  • Commercial Leasing in Minnesota
  • Commercial Real Estate in Minnesota
  • Apartment Rental in Maryland
  • Commercial Leasing in Maryland
  • Commercial Real Estate in Maryland
  • Apartment Rental in Colorado
  • Commercial Leasing in Colorado
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Rental vacancy rates
  • Homeownership rate in Illinois
  • Number of adults aged 20 to 64 in Illinois
  • Median household income in Illinois

  • Current Performance
  • Recession benefits demand
  • Demographics of demand
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Economy provides stimulus
  • Favorable demographics
  • Increasing supply and competition from housing
  • Table: Apartment Rental in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Apartment Rental in Illinois Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Retirement & Pension Plans

  • Key Selling Industries
  • Construction
  • Finance and Insurance
  • Landscaping Services
  • Property Management
  • Real Estate Sales & Brokerage
  • Utilities

  • Products & Services
  • Single units (attached and detached)
  • Two to four units
  • Five to nine units
  • 50 + units
  • Condominiums
  • 20 to 49 units
  • 10 to 19 units
  • Manufactured homes and cooperatives
  • Chart: Apartment Rental in Illinois Industry Products and Services Segmentation

  • Major Markets
  • One person households
  • Two person households
  • Four person or more households
  • Three person households
  • Chart: Major Market Segmentation for the Apartment Rental in Illinois Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Depreciation
  • Wages
  • Purchases and marketing
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Apartment Rental in Illinois

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Apartment Rental in Illinois Industry

  • @PropertiesBaird & WarnerRE/MAX LLCJameson Sotheby’s International Realty
  • Table: @Properties - financial performance
  • Table: Baird & Warner - financial performance
  • Table: RE/MAX LLC - financial performance
  • Table: Jameson Sotheby’s International Realty - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Apartment Rental in Illinois Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Apartment Rental in Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Rental Vacancy Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dwelling
  • Another name for an apartment or home.
  • Funds From Operations
  • Funds used to define cash flow from operations for REITs that are calculated by adding depreciation and amortization expenses to earnings.
  • Leadership In Energy And Environment Design (Leed)
  • An eco-oriented building certificate program established under the US Green Building Council. LEED-certified buildings are energy efficient and green certified.
  • Occupancy Rate
  • The amount of occupied real estate space as a percentage of total available space.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
  • Rental Agreements
  • An agreement with no set period of occupancy in which landlords and tenants are free to make changes to the contract at the end of each 30-day period.
  • Vacancy Rate
  • The amount of unoccupied real estate space as a percentage of total available space.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Apartment Rental in Illinois is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Apartment Rental in Illinois:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Apartment Rental in Illinois market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Apartment Rental in Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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