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Market Report

Chicago Multifamily Market Report

3Q 2023

Despite Notable Out-Migration, Vacancy Adjusts
Minimally Amid a Reduced Delivery Slate

Strong local job market aids apartment usage. Chicago’s unemployment rate reached 3.9 percent in June 2023, its lowest point since immediately before the pandemic. This recovery was achieved even with substantial migration outflows. By year-end, the local population will register 2 percent below its 2019 total, the fourth-largest decline behind only San Francisco, New York and Los Angeles. Still, a tight employment landscape is benefiting multifamily demand. Over the year ending in June, vacancy among one-bedroom apartments expanded at a slower pace than two- and three-room units, suggesting a strong job market is promoting more renters to live alone, rather than seek out roommates. This allowed metrowide vacancy to remain 100 basis points below its long-term average in the second quarter. 
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