Market Report
Chicago Multifamily Market Report
1Q 2026
Diverse Labor Pool Supports Stable Outlook
Amid Developing Demographic Headwind
Minimal construction benefits select submarkets. Chicago’s inventory expanded at the fourth-slowest pace among major markets over the past three years, a trend that will continue in 2026 as deliveries fall below 4,000 units for the first time since 2012. With CBD vacancy at its lowest level since at least 2006, existing properties in the urban core will benefit from this scant construction. Similarly, South Cook and Will counties will add a limited number of units, which may keep vacancy near 2 percent. In contrast, Lake County-Kenosha is slated to receive the most completions in 2026. These deliveries may put upward pressure on local vacancy. However, the area entered this year with roughly 3 percent availability. Metrowide, the 20- to 34-year-old renter cohort continues to shrink, remaining a headwind. Fortunately, Chicago’s diverse economy provides near-term stability to the local labor market and helps mitigate risks from a potential national downturn. No sector accounts for more than 13 percent of the region’s GDP — one of the most balanced compositions among major U.S. metros.
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