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Market Report

Chicago Multifamily Market Report

2025 Investment Forecast

Limited New Supply Sustains Market Momentum;
Private Investors Lead Transaction Activity

Chicago’s easing supply-side pressures strengthen market outlook. The metro ended last year with the fewest construction starts since 2014, which bodes well for the development slowdown already taking shape this year. Supply remains particularly tight in the Hyde Park-South Shore area and in the north side neighborhoods from Uptown north to Evanston, where vacancies decreased in 2024. Neighborhoods in the West Loop and River North have seen a steady influx of young professionals attracted by new jobs in technology and health care sectors. This has sustained low vacancy and driven rent growth in these submarkets. Despite a recent population decline, the multifamily sector has demonstrated resilience. Notably, the city’s investment in public transportation expansions has improved connectivity, making more areas attractive for residents. These drivers provide an optimistic outlook on Chicago’s ability to navigate through a more moderate economic growth cycle this year.
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