Rents Back Up Amid Slow Recovery
Chicago multifamily saw some improvement during the first four months of the year, according to the latest Chicago multifamily market report. Rents were up a healthy 0.5% on a trailing three-month basis through April, above the 0.3% U.S. figure, as noted in the national multifamily market outlook. Year-over-year, Chicago ranked fifth across the top 30 metros tracked by Yardi Matrix, recording a 2.9% gain, with the average rent settling at $1,908. Meanwhile, occupancy dipped just 30 basis points year-over-year, to 95.3% in March, remaining 80 basis points above the 94.5% national average.
Metro Chicago unemployment rose to 4.9% in March, according to preliminary data from the Bureau of Labor Statistics. The rate was 10 basis points above Illinois’ average and surpassed the U.S. figure by 110 basis points. Job growth was slow in the 12 months ending in February. Chicago recorded a tepid 0.6% expansion, with a net gain of 10,700 positions. That rate was less than half the U.S. figure. While education and health services recorded 24,600 new jobs, professional and business services lost a whopping 35,100 jobs.
New multifamily deliveries represented just 0.3% of existing stock year-to-date through April, as 1,233 units came online. Sluggish construction starts reinforced the pattern of decelerating activity, with only 671 units breaking ground in the first four months of 2024 across the metro. Meanwhile, investment shifted away from nationwide trends, as $523 million in assets changed hands, almost on par with last year’s $640 million during the same time frame.
Read the full Yardi Matrix Chicago Multifamily Market Report: June 2024
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