IB analysts Chicago rent
If you are in IB analyst in Chicago, how much are you spending in rent per month? If you don’t mind sharing some details, where are you living, how many roommates, square feet, etc……
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$3,000 will get you a 1BD in a brand new luxury high rise in the top neighborhoods with every amenity you could want, while similar units in Manhattan would be reaching $6,000+. Definitely not as cheap as a Dallas/Houston/Charlotte/etc. but much cheaper than NYC.
Exactly. As this guy said, you can get top-notch, amenity-laden, 1 bedroom in a great new building in Chicago for 3000, whereas in NYC, that would cost you 6000. That's a 36,000 savings per year, which basically translates into $50,000 worth of salary. So if living in "nice place" is a priority for you, the apt. alone gives you tremendous savings in Chicago vs. NYC. Similarly, a great studio in Chicago will be 2200-2500 vs. 4500-5000 in NYC... so even with top-notch studio, you're going to be saving 25,000-30,000 in Chicago vs. NYC.
These figures are objectively very high. No need to pay that much in rent your first year out of college. My first year I paid sub-$1000 and lived with four friends. Had an ideal location in the heart of LP. Have a friend currently an IB A2 living in the Loop, paying $1,500 a month. His TC is roughly 190k and he thinks his rent is pretty high.
Not sure if all of the above posters are trust fund rats or learned nothing in their finance courses but paying 3k a month for a 1BR is a low IQ play. This isnt SF or NYC, this is Chicago for christ sakes. It makes the most sense to get a couple roommates or to just get a studio if you absolutely must live alone right after graduating. I personally don't get wanting to live alone when you work long hours. Live with 1-2 guys and cut a third off your rent and actually have people to hang with in your place on those rare nights when you get off early and just want to binge netflix or hang without going anywhere. Obviously make sure they understand that they need to respect your sleep as you wont be getting much of it, but thats about it. Live with guys in the same industry or that work jobs with brutal hours and they will be able to relate.
Chicago is KNOWN for its LCOL. I understand paying a premium to be close to the office but paying top dollar for an apartment youll never be in is a dumb move. When you are an A1 you pretty much work non-stop, and when you aren't working, you are drinking (not at your 1BR, but at a bar/restaurant/etc.). If you have a 1 BR or a studio who cares how nice it is, its not like youll be hosting pre games. No one wants to come over to your tiny 1 BR to sit on your one chair to drink luke warm bud lights before going out. People will gravitate to the 3-4 BR location where you have a proper living room, and if you're lucky, an outdoor space. If you have 3-4 guys all making IB money you can get an extremely nice place with a 2 car garage and a private patio and live like kings for 1-2k a head. Why on earth would you opt to pay double or triple that to live alone?
I am truly shocked that people spent so much on rent fresh out of UG. I have been able to keep my rent as less than 15% of my pre-tax income every year since I graduated. There are a lot more enjoyable things to spend your hard earned money on than a granite countertop and a fresh out the box fridge. People will point to their amenities but the reality is most of them are boilerplate and mediocre given the premium paid to live in a luxury building.
Don't think that, with hybrid work, your statement that "you won't ever be in your apartment" holds up. Obviously, lot of analysts spending a lot more time in their apartment.
And not saying first years should be spending a lot of money on rent. It's ALWAYS a great idea to live below your means, delay gratification and save more now so you can compound and spend more later.
That said, when you figure in a conservative bonus of 50,000 for a first year (and many analysts will probably make a bigger bonus than that), that means they're grossing 160,000 their first year. After taxes, let's say they net around 100,000. If you want to spend 2500/month on a top-notch studio/one bedroom, that's 30% of net, and -- while that's not the right strategy for everyone -- if it's going to give you better mental health and improve your work productivity, it seems like a viable option for some.
These analysts are out of their mind. Both in location and cost of rent. I’ll give guidance on a few things:
Depending on how often you go into the office, it might be worth looking at something in the river north, west loop, or Gold Coast area (assuming your bank is in the loop or close to it) that’s going to jack your price up, but might be worth it. There also are some gems in the loop you can find. In truth, I ended up having a more flexible work from home arrangement and living close to the office was one of my bigger regrets (since it was more expensive than it needed to be). Overall, the key in general as a young person is finding 2 bedrooms you split with a friend or 1 bedrooms you split with a significant other in my opinion. Studios are pricey and can feel sad in IB in my opinion.
For context, I paid $1750 for a 2 bedroom and $1600 for a 3 bedroom split between 2 people. Both were luxury buildings one in river north, one in the loop. Both also had ~1200 sqft. They weren’t the absolute nicest buildings, but they were clean high rises with great amenities. If you want to be stingy, you can find places sub $1,500 and I know people who did. More people especially can allow you to get like town homes where every person has their own bedroom and bathroom for like $1700 each.
I think the people above picked some of the nicest newer and luxury buildings from what I can see. A great example is 369 grand versus river north park. These buildings are in river north and basically across the street from each other. One is brand new, one is pretty new. Both have in-unit gyms, doormen, are clean, etc. 369 grand is like 2000-3000 per person almost any way you split it since it was built last year. River north park is like 1500-2100 per person any way you split it.
My advice, don’t be stingy because your analyst years can suck and it’s time to shell out cash if ever there was a time, but also don’t go for the highest luxury buildings. There is a middle ground. Also, find a roommate and I might even recommend doing a split that is uneven to convince a friend who might not normally be able to afford as nice a building. For example, what I did with my friend was I paid 1900 he paid 1500 which allowed me to get a place way nicer than a 1900 or 2000 studio. General price guidance, you shouldn’t be paying more than $2200 or lower than $1600 whether you get a studio, 1 bedroom or 2 bedroom. I would say $1600-$1750 you should feel you got a deal while living in a luxury building $1800-2000 you are about average for an analyst living in a 1 bedroom or high end studio alone. $2000-$2200 you are getting a nice place $2200+ you should prob wait until you are done with your stint and/or find something more affordable because that price is just not necessary for an analyst.