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Market Report

Chicago Multifamily Market Report

3Q 2021

Fundamentals Return to Pre-Pandemic Levels, Boosting Investment and Out-of-State Interest

Positive absorption resurfaces across all submarkets. Chicago recorded a recent spike in apartment demand that restored vacancy and rent metrics to levels last seen before the health crisis. From April through June, renters absorbed nearly 9,900 units, the strongest quarter for leasing in more than 10 years. Positive absorption was widespread outside the CBD as households continued to seek larger, lower-cost apartments in suburbs. Concurrently, vaccination efforts and the return of employees to offices drew a separate cohort of renters back to the city. Streeterville-River North and the Loop registered the largest absorption totals among submarkets in the second quarter at 1,550 and 1,150 units, respectively. Moving forward, the return of students to universities and expected job growth in the second half should further bolster property performance in these locales.
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