Chicago Multifamily Report – Summer 2021

As far as gateway markets go, the Windy City fared relatively well going into the second quarter.
Chicago rent evolution, click to enlarge
Chicago rent evolution, click to enlarge

As Illinois nears the final steps in the state’s reopening plan, the road to economic recovery is slowly gaining ground. As is the case with other hard-hit gateway markets, Chicago’s rebound is gradually taking shape. Although faced with challenges through 2020, the metro’s multifamily fundamentals have endured—as of April, rents were up 0.5 percent on a trailing three-month basis, to $1,532, above the $1,417 U.S. average.

READ THE FULL YARDI MATRIX REPORT

Chicago sales volume and number of properties sold, click to enlarge
Chicago sales volume and number of properties sold, click to enlarge

In the 12 months ending in February, Chicago lost a combined 394,300 jobs, for an 8.4 percent contraction. As of March, unemployment stood at 7.1 percent in Illinois and 7.7 percent in metro Chicago, both behind the 6.0 percent U.S. rate. The $1.9 trillion American Rescue Plan allocated an estimated $7.5 billion in direct aid to Illinois and $5.5 billion to local governments, including $1.8 billion earmarked for the city of Chicago.

Chicago had 16,959 rental units under construction as of April, with 86 percent of those targeting high-income renters. In total, Yardi Matrix expects 7,855 units to come online across the metro this year, virtually on par with deliveries recorded in 2020. Meanwhile, investment sales were off to a solid start in 2021, with 22 assets totaling 4,760 units trading for $522 million in the first quarter of the year.

Read the full Yardi Matrix report.