HomeMarketCap.comThe median tracked Chicago ZIP has a home-value-to-annual-rent ratio of 15.1, and that ratio varies more between Chicago ZIPs than it does between metros. The home-value-to-annual-rent ratio runs from 6.6 in 60621 to 23.3 in 60646, so the same metro contains both ends of the range. 30 of 56 ZIPs (54%) show faster rent growth. The median tracked ZIP in Chicago has a typical home value of $340,167 and typical rent of $1,883 per month.
Key stats
- The home-value-to-annual-rent ratio runs from 6.6 in 60621 to 23.3 in 60646, so the same metro contains both ends of the range.
- The median tracked ZIP in Chicago has a typical home value of $340,167 and typical rent of $1,883 per month.
- 4 of 56 ZIPs (7%) show faster inventory growth.
- 30 of 56 ZIPs (54%) show faster rent growth.
- Tracked ZIP markets
- 56
- Median ZIP home value
- $340,167
- Median ZIP rent
- $1,883
- yield spread
- The home-value-to-annual-rent ratio runs from 6.6 in 60621 to 23.3 in 60646, so the same metro contains both ends of the range.
- rent acceleration share
- 30 of 56 ZIPs (54%) show faster rent growth.
- inventory growth share
- 4 of 56 ZIPs (7%) show faster inventory growth.
The measurable part of the question
The median tracked Chicago ZIP has a home-value-to-annual-rent ratio of 15.1, and that ratio varies more between Chicago ZIPs than it does between metros.
Price-to-rent is a yield proxy and nothing more: it carries no financing cost, no tax, no insurance, no vacancy and no management, so it ranks opportunities rather than pricing them.
Where the yield actually differs
The home-value-to-annual-rent ratio runs from 6.6 in 60621 to 23.3 in 60646, so the same metro contains both ends of the range.
A metro-level ratio is an average of neighborhoods that behave differently; the decision is made inside that range, not at its midpoint.
Sources and method
- HomeMarketCap.com data sources: ZIP and metro housing-market datasets
- HomeMarketCap.com methodology: calculation and missing-data rules