Is it cheaper to rent or buy right now in Schaumburg, IL? The answer depends on your unique housing needs and budget. In this article, we’ll break down the typical costs of renting an apartment versus owning a home in Schaumburg, including rent, mortgages, property taxes, utilities, and more. By the end, you’ll have a clearer picture of which housing option makes the most financial sense for your situation.
The Housing Market in Schaumburg Today
Schaumburg’s housing market in 2023 is characterized by steady demand and a mix of established neighborhoods and new developments. The northwest suburb, located about 30 miles from downtown Chicago, attracts a diverse population including young professionals, families, and retirees.
In recent years, inventory has tightened somewhat, especially for entry-level single-family homes. However, Schaumburg still offers a variety of housing options to fit different budgets and preferences, from apartments and condos to townhomes and single-family houses. New apartment complexes and townhome communities continue to rise near popular areas like Woodfield Mall and the Schaumburg Convention Center.
One unique characteristic of Schaumburg’s housing landscape is the prevalence of homeowners associations. Many of the village’s residential neighborhoods, including condos, townhomes, and single-family subdivisions, are governed by HOAs that charge monthly or annual dues to cover amenities and exterior maintenance. This can be an important cost consideration for potential buyers.
Renting in Schaumburg: What’s Typical?
Schaumburg offers a robust rental market with options ranging from studios to three-bedroom apartments. According to RentCafe, the average rent for an apartment in Schaumburg is $1,469 as of February 2023. Here’s a breakdown of average rents by apartment size:
- Studio: $1,100
- 1 bedroom: $1,248
- 2 bedrooms: $1,510
- 3 bedrooms: $1,894
Keep in mind that rent prices can vary significantly based on an apartment’s age, amenities, and location. Some of the most popular rental neighborhoods for young professionals include the areas around Woodfield Mall and the Veridian development, which offer walkable access to shopping, dining, and entertainment. Families and older renters may prefer the quieter garden-style apartment communities found in more residential parts of Schaumburg.
Rent in Schaumburg has risen at a modest pace of about 2% over the past year, which is slower than many other Chicago suburbs. The village’s ample supply of apartments relative to demand has helped keep rent hikes in check, although certain high-end buildings have increased prices more steeply.
Owning a Home in Schaumburg
For those looking to put down roots in Schaumburg, homeownership is a popular choice. According to Zillow, the typical home value in Schaumburg is $301,280 as of January 2023, an increase of 4.8% over the past year.
With a 10% down payment and a 30-year fixed mortgage at 6.5% interest, the typical monthly mortgage payment for a median-priced home in Schaumburg would be around $1,900. However, condo prices are significantly lower, with a median price of $165,000 that would translate to a monthly mortgage of about $1,050.
In addition to the mortgage, Schaumburg homeowners can expect to pay around $5,000 per year in property taxes, or $417 per month. Condo owners pay a lower tax bill but must also budget for monthly HOA dues, which average $250-$400 in most Schaumburg developments. Homeowners insurance adds another $50-$80 to the typical monthly cost.
Renters vs. Homeowners: Who Lives Where?
Schaumburg’s homeownership rate of 73% is higher than the national average of 64%, reflecting the village’s large supply of single-family homes and a population that skews older and more affluent than nearby communities. Still, more than a quarter of households rent, including a mix of young singles, couples, families, and downsizing retirees.
While renting is common among younger residents, many do eventually buy homes when their budgets and life plans allow. The decision often comes down to lifestyle priorities and financial readiness. Building up savings for a down payment and closing costs is one of the biggest barriers to homeownership for Schaumburg renters.
Another factor is that Schaumburg’s housing stock is heavily tilted toward single-family homes, with relatively few entry-level condo options compared to some other suburbs. This can make it harder for first-time buyers to find an affordable “starter home” in their desired location.
Typical Monthly Housing Costs in Schaumburg
To directly compare the monthly costs of renting versus owning in Schaumburg, let’s look at the typical expenses for a one-bedroom apartment and a median-priced condo:
| Expense | 1 BR Apartment | Median Condo |
|---|---|---|
| Rent/Mortgage | $1,248 | $1,050 |
| Property Tax | $0 | $292 |
| Homeowners/Renters Insurance | $15 | $50 |
| Utilities | $120 | $150 |
| HOA Dues | $0 | $300 |
| Total | $1,383 | $1,842 |
Estimates reflect mid-range properties and average usage.
As shown above, owning a condo in Schaumburg typically costs about $450 more per month than renting a one-bedroom apartment, assuming a 10% down payment. However, the gap would be smaller with a larger down payment, and owners can eventually pay off their mortgage, while renters face payments indefinitely.
What’s Driving Housing Costs in Schaumburg?
Schaumburg’s housing costs are influenced by both local and regional factors. Within the village itself, demand is driven by the strong job market, highly rated schools, and abundance of shopping, dining, and entertainment options. Major employers like Zurich North America and Motorola Solutions attract well-paid professionals to the area.
On the supply side, Schaumburg’s largely “built out” land area means that most new residential development is infill, teardown, or redevelopment of existing sites. This puts some upward pressure on housing costs, especially in the most desirable locations. New housing is also more expensive than existing homes.
At the same time, Schaumburg faces competition from other nearby suburbs to attract residents and businesses. Places like Arlington Heights, Palatine, and Hoffman Estates offer similar amenities, often at lower price points. This regional dynamic can help keep Schaumburg’s housing costs from rising too quickly relative to incomes.
FAQs About Housing in Schaumburg
Is Schaumburg affordable to live in?
Schaumburg is relatively affordable compared to downtown Chicago and upscale suburbs, but it is slightly pricier than some neighboring communities. Residents benefit from high incomes, good schools, and ample amenities. See our monthly budget guide for a fuller picture of the cost of living in Schaumburg.
Why are housing prices rising?
Schaumburg home values have gone up due to the limited supply of entry-level houses, low mortgage rates (until recently), and regional demand from Chicagoland buyers. However, the village’s prices are rising slower than some hotter real estate markets.
How does Schaumburg compare to nearby cities?
Schaumburg is more expensive than Hoffman Estates, Hanover Park, and Streamwood; similarly priced to Palatine and Roselle; and cheaper than Arlington Heights, Mount Prospect, and the North Shore suburbs. It offers a good balance of housing types and costs.
Making Smart Housing Decisions in Schaumburg
As this breakdown shows, housing costs are very personal and depend on your unique needs, budget, and priorities. Renters can check out our Schaumburg cost of living guide for tips on keeping monthly expenses under control. Prospective buyers should weigh not just the monthly mortgage, but also property taxes, insurance, maintenance, and HOA/condo fees.
No matter your housing situation, it pays to do your research and budget realistically. By understanding the key costs outlined above, you’ll be well prepared to find the perfect Schaumburg apartment or home at the right price.