Chicago Multifamily Market Report
City-Suburban Disparity Widens During the Pandemic, Posing Challenges for Urban Properties
Supply growth, slower demand upended rentals in city core. As businesses closed or sent employees to work from home during the pandemic, many households sought less costly or larger living quarters that could accommodate remote activities. These factors reduced rental demand in the urban core, especially in the Streeterville-River North and the Loop areas. These submarkets each received more than 2,000 new units in 2020. Coupled with lower demand, vacancy soared 390 and 420 basis points to metro highs of 9.3 percent and 10.3 percent, respectively. This year, a slower delivery pace and widespread vaccinations that allow workers to return to offices should improve rental demand in the urban core.