Chicago developers are looking to rental units as an answer to the slowdown in condominium sales around the city.
Demand for condominiums in the South Loop has dropped in recent months. Tightening requirements from lenders and banks mean that many buyers are unable to get approval for mortgages.
Buyers who are unable to qualify for a mortgage must now look at rentals in the neighborhood, increasing demand and prices around the Chicago Loop.
One of the newest rental developments announced for the South Loop is for 1,000 units in three towers.
The $280 million project was announced by AvalonBay Communities Inc, a Virginia-based developer.
The project is slated to begin in late 2008, with completion of the first units planned for 2010.
Amenities will include a modern health club, pool and sundeck, and green space for all residents to enjoy.
AvalonBay Communities has several developments around the country. The company controls about 50,000 apartment units.
Developers should continue to focus on rentals in the Chicago area. The market for Chicago Condos is seeing an increase in inventory and fewer sales in neighborhoods around the city.
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