Exactly what makes an apartment valuable? Depending on where you live in Chicago, the answer may vary. Would you pay more for granite countertops or hardwood floors? A pool or a rooftop deck? A pet park/dog run or a daycare service?
Using Enodo’s Amenity Premium Detection Algorithm, we were able to calculate the average rent premiums for various apartment amenities in Chicago at the Census Tract level. Our research found that throughout the city, residents in different neighborhoods pay different prices for access to the same amenities. To illustrate some of these differences, we explored the difference in premiums associated with In-unit Laundry vs a Balcony/Patio in Chicago's apartment communities.
What the Data Shows
Throughout the City of Chicago, on average residents pay approximately $36 per month for in-unit laundry, and $29 per month for units with a balcony/patio. Outlined below are the neighborhoods paying the highest and lowest premiums for these amenities:
In-Unit Laundry Rent Premiums
Highest: East Village, $59 per month
Lowest: Austin, $16 per month
Balcony/Patio Rent Premiums
Highest: Bucktown, $56 per month
Lowest: Auburn/Gresham, $10 per month
As can be expected, the premiums associated with having a balcony or in-unit laundry will differ depending on the neighborhood being analyzed. Census tracts in Chicago’s northern neighborhoods with views of Lake Michigan tend to value balconies more highly, but Bucktown as a whole pays a higher premium, on average, for the same amenity.
Below is a visualization of Balcony/Patio and In-Unit Laundry amenity premiums by census tract throughout the City of Chicago:
If you are an apartment building owner and you only look at the average amenity premiums for an entire city, you may be over or under charging for various amenities.
Enodo's machine learning platform calculates incremental amenity values down to the individual building level. We help you determine exactly what you should charge in amenity premiums for your specific property, and you can use our software to test value-add scenarios and plan capital improvements.