Chicago Multifamily Market
Tight Conditions Spark Record Rent Growth;
Sales Activity Hits Post-Pandemic High
Availability sits near record low in suburban Chicago. Throughout the first half of 2022, vacancy in suburban portions of the metro rose slightly from the year-end 2021 level, but held beneath the historic average, resting at 3.3 percent in June. This level of availability is 70 basis points below the pre-pandemic record low set in 2015 and 2019. Metrics here improved during the pandemic as renters sought out larger apartments with more access to outdoor space. Momentum has not dissipated as the urban core reopens, evidenced by net absorption above 8,000 units during the 12 months preceding July — more than 2,000 units above the previous annual period and 1,700 units above the trailing five-year average. This suggests the pandemic-induced suburban flight is an acceleration of migration trends for aging millennials, as opposed to a temporary surge.