Chicago Multifamily Market Report
Renters Returning to the Urban Core as Conversions
Present a Changing Landscape
Lower-tier options back continued downtown momentum. Following suburban migration from 2020-2021, the urban core saw resumed popularity last year. At the beginning of 2023, the city’s CBD — comprising of the Loop and adjacent neighborhoods — maintained a vacancy rate 80 basis points below its five-year average. This trend is supported by Class B and C demand, both recording compressed availability while averaging over 8 percent rental growth in 2022. As companies increasingly encourage in-person and hybrid work week schedules, preferences for shorter commute times likely reflect a continued rise in downtown Chicago apartment leasing activity. The Lincoln Park-Lakeview area is a prime example, having registered a 190-basis-point drop in availability year-over-year in the first quarter amid compression from all class segments.