2022 Rental Analysis: Hyde Park Vs. Woodlawn

Hyde Park is a neighborhood just a 10 minute drive south of Chicago’s Loop, and the drive is unforgettable; cruising down Lake Shore Drive, passing stretches of beaches, parks, marinas. The neighborhood itself is breathtaking, with mansions street by street. There is so much history there that Hyde Park has preserved.?Looking at a map alone, one can come to the obvious conclusion that this is a spectacular location.

Since 1890, Hyde Park has housed the University of Chicago, a world-renowned University. Today, the University enrolls 14.5k students per year, receives over $11b in funding, and offers 65+ of departments of study.?Growing year by year and offering more fields to students, the University truly has “laid the groundwork for breakthroughs across the sciences, medicine, economics, law, business, history, culture, the arts, and humanistic inquiry.” -univsersity.edu

According to CoStar, there are 329 Multifamily properties in Hyde Park surrounding the University campus. Of those, over 20% are owned by the University of Chicago and are offered as student housing.

We did a housing study of the average market a student or other tenant type might rent an apartment for in the Hyde Park neighborhood.

Now let’s take a look at the sister neighborhood, Woodlawn. Located just blocks to the south, this neighborhood overlooks the best beaches and parks in all of Chicago?(in my opinion!) and offers two marinas, golf courses, and soon to be completed, the Obama Presidential Library. The same analysis of apartment rents with similar amenities. The neighborhoods don’t differ too much either, with the same restaurants, and the same grocery stores.

The surrounding neighborhoods often times are overlooked. Our team discussed the many reasons for this divide, but one conclusion we agreed was that the University has a powerful impact on the neighborhood in which it is located. This entity is a driving force for the development of Hyde Park. Will the Obama Center & Presidential Library have the same impact on Woodlawn?

The Obama Center’s projected completion is sometime in 2025, and will bring thousands of jobs, specifically to the local residents. It is reported that 28% of short-term construction jobs will go to South Side residents, while the remaining 72% will go to residents of Cook County. After completion, 86% of the long-term jobs will go to residents of the surrounding neighborhood.

Our team has been tracking the progress of this as well as other developments surrounding Woodlawn. There is no doubt that this area is trending upwards as a place to both invest in and reside. Both local and out of state multifamily investment groups have too caught onto this hot neighborhood.