Market Overview
Chicago has a population of nearly three million residents, home to eight major league sports teams, over 7,300 restaurants, and a large commuter base (the second-highest percentage of commuters that ride their bikes to work). There is plenty to do in Chicago, holding 600 parks, 29 beaches, and plentiful art and culture appreciation events. Dubbed the theatre capital of the U.S., it is the birthplace of storefront theatre and improv comedy, long-running Broadway hits, and has had more world premieres than any other city in the U.S. The market has welcomed low levels of multifamily supply over the past couple of years, helping keep vacancies compressed and rents high. Deliveries to the market have kept pace with the ten-year average, and absorption has demonstrated continued demand to live in Chicago.
Vacancy Fundamentals
Renters are once again drawn to Chicago in a post-COVID-19 world, with each class rating reporting year-over-year gains. Overall, rent growth posted 8.3 percent in the last 12 months, four times the historical average of 2.2 percent. All except two of Chicago’s 43 submarkets posted rent growth, with many recording gains over 10 percent. Rental surges are most prominent in downtown Chicago, containing the second-largest multifamily inventory in the metro.
Sales Volume
After a strong Q4 2021 with $2.3 billion in sales, Chicago’s 12-month trailing sales volume stands at $5.9 billion. Downtown Chicago and North Lakefront recorded the second and third-highest gross sales volumes year-over-year. By mid-2022, the Naperville submarket reached $701 million in closed transactions, nearly 50 percent more from the previous quarter. Far Northwest Suburban Cook County is not far behind, achieving $351 million as of mid-2022, or three times greater than last year.
