Chicago Q3 Multifamily Market Insights: Rents rise as renter demand outpaces supply growth
Highlights:
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- Operating conditions in the Chicago multifamily market continued to improve as asking rents rose, and vacancy ticked lower.
- While apartment developers are bringing new projects online, deliveries represent only a small percentage of existing inventory. Roughly 4,000 units are projected to be completed this year.
- The vacancy rate continued to improve in recent months, dipping 10 basis points during the third quarter to 4.7 percent. Year over year, the rate is down 60 basis points.
- Rent growth remained strong in recent months, rising 2.5 percent to $1,791 per month. Year over year, asking rents are up 9.8 percent.
- The pace of sales during the third quarter closely tracked levels from the prior period. The median sales price to this point in the year is $145,700 per unit, up nearly 5 percent from the median price in 2021. Cap rates averaged approximately 4.7 percent during the third quarter.
