Chicago Rents Stall, Construction Steady
As the economy slowed in the latter half of 2023, major multifamily markets geared up for more challenging times, according to the latest Chicago multifamily market report. Chicago weathered the storm, with some fundamentals still close to historic averages. On a trailing three-month basis through November, rents were down 0.3%, just 10 basis points lower than the national rate. Demand for multifamily remained positive, with occupancy up 40 basis points year-over-year through October, to 95.7%.
Chicago’s workforce expanded by 1.6% on a 12-month basis through September, amounting to 66,500 new jobs. Although lagging national figures, Chicago’s economic growth maintained historic, pre-pandemic levels, with unemployment reaching 4.4.% in October, preliminary data from the Bureau of Labor Statistics shows. The education and health services sector was the metro’s strongest performer, with 35,400 jobs gained, or a 4.8% expansion. Developers started work on a new cancer research center at UChicago’s Medicine Center near Hyde Park. The $815 million facility is scheduled to open in 2027.
Despite a slower pace, Chicago did not see the dramatic shifts in supply dynamics seen in other major markets. A total of 6,324 units came online year-to-date through November, down 13.2% year-over-year. The metro had 16,183 units under construction and an additional 85,000 in the planning and permitting stages.
Read the full Yardi Matrix Chicago Multifamily Market Report: January 2024
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