Chicago Multifamily Report – September 2022
Small but steady steps forward are adding up to recovery.
Chicago rent evolution, click to enlarge
Chicago’s rental market continued on a solid trajectory, but relative to other gateway markets, it is still playing catch-up. Rents in the metro advanced 1.1 percent on a trailing three-month basis through July, to $1,814, exceeding the U.S. rate by 10 basis points after lagging for the first half of the year. On a year-over-year basis, rents were up 9.6 percent, 300 basis points behind the U.S. figure and behind most other major metros.
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Chicago sales volume and number of properties sold, click to enlarge
The metro’s unemployment rate reached 4.8 percent as of June, according to preliminary data from the Bureau of Labor Statistics, having increased 70 basis points from its lowest point in April (4.1 percent). Still, the metro is faring better compared to 2021—over the 12 months ending in May, Chicago added 212,100 jobs, representing a 4.9 percent increase. Chicago launched its first citywide plan in over 50 years. Dubbed “We Will Chicago,” the 10-year framework aims to reduce the city’s social and economic inequities. Following policy discussions, a public feedback process and an estimated $4 million to create it, the plan will be implemented in 2023.
Multifamily transactions amounted to $1.4 billion for the first seven months of 2022, down 14 percent year-over-year, after 2021 saw a record $3.9 billion in sales. Development activity stayed strong, as Chicago had 16,196 units under construction, more than 75 percent of which target Lifestyle renters.
