Chicago Multifamily Market Report

Demand surge boslters property performance. The Chicago metro area added over 100,000 residents in the last two years, contributing to the recent acceleration in apartment leasing. This culminated in the net absorption of over 7,300 units in the six months ended in the first quarter — a figure that exceeds 2024’s total delivery count. As such, 10 of Chicago’s 20 submarkets posted triple-digit basis-point vacancy drops over the four quarters ended in March, supporting a 5.5 percent rise in the market’s average effective rent — the largest gain among major metros. Rent growth was most prominent at Class A and C properties, with the gains recorded by both sectors — 6.8 percent and 4.4 percent, respectively — ranking among the fastest rates in the nation by apartment class. As completions fall sharply in 2025, Chicago is poised for another year of standout rent growth.