Chicago Multifamily Report – September 2024
Despite a slow economy, the area's rental sector is outperforming.
Chicago’s multifamily fundamentals were mixed in the third quarter. Advertised asking rents were up 0.4 percent, to $1,938, on a trailing three-month basis, 10 basis points above the U.S. Rates in the metro were up 2.0 percent year-over-year, which was more than double the 0.8 percent national figure. Occupancy remained healthy, dipping only 20 basis points year-over-year, to 95.6 percent in June, above the U.S.’ 94.6 percent.
Unemployment reached its highest rate since August 2021, at 6.4 percent in July, according to preliminary data from the Bureau of Labor Statistics. It also stood 230 basis points higher than the U.S. figure. Over the 12 months ending in May, Chicago gained 12,700 net jobs, or a 0.2 percent expansion. Growth significantly lagged the nation’s 1.3 percent. Education and health services led gains with 22,200 jobs, while professional and business services recorded a loss of 30,400 positions.
Chicago’s multifamily supply pipeline saw some disruptions, as only 2,957 units were added in the first seven months of the year. This accounted for 0.7 percent of existing stock, significantly below the national 1.4 percent rate. Starts were also down, with 15,257 units under construction. Meanwhile, investment volume totaled $651 million year-to-date through July, less than half of last year’s $1.5 billion.
