Midwest multifamily transaction activity accelerates in 2025

Midwest multifamily market highlights

• Multifamily operating conditions in the Midwest softened in the fourth quarter, with the vacancy rate climbing while asking rents ticked lower. There were just under 30,000 units delivered in 2025, while roughly 37,600 units remain under construction.
• Vacancy conditions fluctuated throughout the year. During the fourth quarter, the vacancy rate increased 40 basis points to 5.9%. Year over year, vacancy rose by just 20 basis points.
• Rent growth in the Midwest was uneven throughout the year. During the fourth quarter, asking rents declined 1.3%. Despite recent softness, rents were up 0.8% year over year, reaching $1,573 per month.
• The Midwest multifamily investment market improved in 2025, with transaction activity increasing and prices rising. During the past year, the region-wide median price reached $188,400 per unit, up 34% from 2024. Cap rates averaged 5.7%, down 20 basis points from 2024.

Download the full report below to explore Q4 2025 trends in the following Midwest multifamily markets: 

• Chicago
• Cincinnati
• Indianapolis
• Kansas City
• Milwaukee
• Minneapolis
• Omaha
• St. Louis