Rent Growth Down, Occupancy Moves Up
Mirroring the national negative movement, Chicago’s average advertised asking rents were down 0.2%, on a trailing three-month basis, through November, according to the latest Chicago multifamily market report. Short-term rent growth crested in the summer, reaching 0.8%, but turned negative as fall moved in. The metro’s occupancy rate was 95.7% as of October, outpacing the U.S. average of 94.8%, as noted in the national multifamily market report.
Metro Chicago’s unemployment rate stood at 5.1% as of September, based on data from The Bureau of Labor Statistics. The average was a full percentage point above the U.S. figure. Metro Chicago added a net total of 4,600 jobs during the year ending in September, impacted by four sectors that shed a total of 40,500 jobs. The Committee on Zoning recently approved two adaptive reuse projects. One would transform an office building at 65 E. Wacker into a 252-unit residential tower and the second would convert The Evergreen Building into a 47-unit property. Additionally, Prologis is converting a warehouse at 800 E. Devon Ave. into a data center.
Chicago developers completed 4,919 units year-to-date through November and had an additional 12,756 units under construction. Investment activity has gained momentum compared to the first half of the year. In the first half of 2024, sales totaled $699 million, but with one month left in the year, total sales volume was $1.9 billion.
Read the full Yardi Matrix Chicago Multifamily Market Report: January 2025
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