Rental trends can vary massively depending on where you live and what’s happening locally, so renters in states like Iowa and Illinois can have hugely different experiences than those in New York or Connecticut.
In recent years, the rental market in the Iowa and Illinois areas has experienced a large amount of change, influenced by various factors, including shifts in economics, demographics, and social conditions. This article will examine how the rental market is shifting in Iowa and Illinois and which trends are most evident.
Urban vs. Rural
There is a contrast between the urban and rural rental markets in Iowa and Illinois. This is the case in other parts of the country, too — going against what was once the case for previous generations. Urban areas have seen increased rental prices, driven by increased demand, owing to better access to amenities and employment, among other things. So, if you’re looking for a room for rent in Chicago, for example, you may face much more competition.
In contrast, rural areas have seen rental prices remain relatively steady or increased by only a small margin. Previously, rural and out-of-city living was highly desirable and a sign of wealth, but that may no longer be true for many Americans. People want easy access to the metropolitan culture of convenience they enjoy. While remote working makes location less of a deciding factor for many employees, it’s still something many consider when moving.
This contrast between the urban and rural settings represents something we can see happening elsewhere and in many countries. However, in Iowa and Illinois, it’s particularly noticeable. As we said, there are many reasons for this, but people often migrate according to where the work is, and with many employers calling their people back to the office, being located nearby just makes sense.
Economic Influences
As we mentioned, the local economy and access to work are critical factors for people looking to rent and relocate, often wanting to live close to their place of work, primarily for ease of travel. In Illinois, Chicago is the largest city by some margin, dwarfing the second most populous city by around 1,500%. As a result, an urban environment like Chicago is the go-to place for many, as shown by the fact that approximately 20% of the state’s 12.7 million people live in Chicago, further impacting rental prices and trends.
The same is not true for Iowa, with a smaller population of approximately 3 million. In Iowa, the population between cities is much more evenly distributed, and the economy — locally and state-wide — has a greater degree of diversification, much less reliant on a single metropolitan area. A smoother blend of manufacturing, agriculture, and service industries has resulted in a more stable state-wide rental market, less impacted by increased prices in more desirable urban locations.
Demographic Shifts
Shifts in local and state-wide demographics, particularly concerning the preferences of Millennials and Gen Z, significantly impact rental trends in Iowa and Illinois. While some Millennials have been in the rental market for some time and may be close to having the money to buy their own home, most of the Gen Z group will likely be fairly green, perhaps still in college or be a recent graduate at most.
Many younger people choose to rent for more extended periods, and while this may not always be a preferred choice — owing to the increased cost of buying a house in the United States — this still impacts rental prices. If people decide to rent for longer, fewer options are available to those wanting to rent for the first time or in a new location, increasing demand and therefore impacting price. This is a contributing factor when people are relocating to the city from rural areas.
Impact of Remote Work
Remote working has become much more popular in recent years, largely thanks to the pandemic. This helped employers realize they could still operate without having their people work from a physical office, meaning that the job market suddenly became much more accessible. This has seen some urban areas see rental prices decrease, with many choosing to live in suburban locations due to the slower pace of life and not having to worry about being able to find work.
However, with many employers now asking their staff to return to the office, perhaps influenced by the expensive leases they’re locked into, we could see this quickly unravel as workers are forced to relocate to urban areas once again. This trend is shifting in real-time, so it’s worth watching and following closely if you’re looking to move in the new year.
Final Thoughts
Various factors influence the rental markets in Iowa and Illinois, each contributing to the unique rental markets of these states. As economic, demographic, and societal trends continue to evolve, the rental markets in these states should too.
