Chicago Multifamily Market Report

Construction activity moderates. Owing to an accumulated shortage of new supply, Chicago is anticipated to claim the fastest rent growth in the nation this year. Roughly 7,000 fewer units were delivered from 2020 to 2023 than in the four years prior, marking the largest drop among any major U.S. market. Supply remains constrained, especially in submarkets like China Town-Hyde Park-South Shore and Merrillville-Portage-Valparaiso, where vacancies trended downward over the past 12 months. Population growth has also returned to the metro for the first time in over a half-decade, boding well for net absorption in 2024, which is expected to double the long-term average of 3,200 units per annum. Average effective rent growth will accelerate as a result, after 10 of 20 submarkets noted gains over 5 percent during the yearlong period ending in March.