Room for Improvement in Chicago’s Fundamentals
Chicago’s rental market continued on a solid trajectory, but relative to other gateway markets, it is still playing catch-up. Rents in the metro advanced 1.1% on a trailing three-month (T3) basis through July, to $1,814, exceeding the U.S. rate by 10 basis points after lagging for the first half of the year. On a year-over-year basis, rents were up 9.6%, 300 basis points behind the U.S. figure and behind most other major metros.
The metro’s unemployment rate reached 4.8% as of June, according to preliminary data from the Bureau of Labor Statistics, having increased 70 basis points from its lowest point in April (4.1%). Still, the metro is faring better compared to 2021—over the 12 months ending in May, Chicago added 212,100 jobs, representing a 4.9% increase. Chicago launched its first citywide plan in over 50 years. Dubbed “We Will Chicago,” the 10-year framework aims to reduce the city’s social and economic inequities. Following policy discussions, a public feedback process and an estimated $4 million to create it, the plan will be implemented in 2023.
Multifamily transactions amounted to $1.4 billion for the first seven months of 2022, down 14% year-over-year, after 2021 saw a record $3.9 billion in sales. Development activity stayed strong, as Chicago had 16,196 units under construction, more than 75% of which target Lifestyle renters
Read the full Matrix Multifamily Chicago Report-September 2022