Metro Reports Multifamily Market Real Estate Trends

Chicago Multifamily Market Report – January 2023

Chicago Multifamily Market Report January 2023
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Chicago’s Reserved Rent Growth

Chicago’s multifamily market followed national patterns, as inflation and other economic headwinds produced noticeable effects. The metro’s rent growth recorded only a 0.1% uptick on a trailing three-month basis through November but also remained 20 basis points ahead of the national rate. The average rent reached $1,816, $97 above the U.S. average.

Economic improvements continued through the year, as the metro’s unemployment rate clocked in at 4.4% in October, preliminary data from the Bureau of Labor Statistics shows. This was a 70-basis-point drop from January 2022, but still behind the 3.7% U.S. rate. Over a 12-month period ending in September, the metro’s labor pool expanded by 4.4%—20 basis points higher than the national rate—representing an addition of 202,600 jobs across all sectors. The $3.6 billion project to extend the Red Line in South Side Chicago received a funding boost. The city council approved a Transit Tax Increment Financing district, which is expected to fund $959 million of the total cost.

Construction activity slowed down in 2022, with developers bringing 5,866 units online year-to-date through November—a 1.5% expansion of stock. This was a 15.3% drop from the same period in 2021 and 50 basis points below the U.S. rate of construction. Meanwhile, investor appetite remained high, as $3 billion in multifamily sales was generated during this period.

Read the full Matrix Multifamily Chicago Report-January 2023

About the author

Tudor Scolca-Seusan

Tudor Scolca-Seusan has worked as an Associate Editor with Yardi for a combined four years. He is focused on writing Yardi Matrix multifamily market reports, in-depth articles and interviews/Q&As for Commercial Property Executive, specializing in industrial real estate and data centers.

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