Skip to main content

Scroll Down

Market Report

Chicago Multifamily Market
Report

2025 Investment Forecast

Chicago Is One of Midwest’s Least Vacant
Markets, Maintaining Institutional Appeal

Chicago’s easing pipeline strengthens market outlook. Last year, the metro recorded its lowest number of multifamily project starts since 2014. This broad pullback in construction activity should have positive implications for larger submarkets. Entering 2025, vacancy was already tight in key areas like Hyde Park-South Shore and the North Side neighborhoods from Uptown to Evanston, where the number of available units trended lower in 2024. Meanwhile, the West Loop and River North submarkets continue to attract young professionals with expanding technology and health care sectors, sustaining low vacancy and rent growth. Chicago’s multifamily landscape has demonstrated resilience despite concerns over some population decline. Investments in public transportation have improved citywide connectivity, while the $7 billion redevelopment near the United Center — featuring mixed-income housing, retail and green spaces — supports long-term economic revitalization. Together, these factors aid Chicago’s ability to sustain demand, keeping vacancy below 5 percent for a second consecutive year, even amid more moderate economic growth in 2025.

Related Research

Back to top