Chicago 1Q23 Multifamily Market Insights Report: Sales volume concentrated in Class A properties
Highlights:
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- Property fundamentals in Chicago softened somewhat during the first quarter as vacancy trended higher and asking rents inched lower. Multifamily developers increased activity levels, and more than 14,200 units are currently under construction.
- After holding steady during the second half of 2022, the vacancy rate rose 30 basis points in the first quarter to 5%. Year over year, the rate improved by 20 basis points.
- Asking rents in Chicago retreated slightly during the first quarter, dipping 0.5% to $1,827 per month. This followed an extended period of rapid growth; year over year, rents are up 8.2%.
- Sales velocity during the first quarter was minimal for a second consecutive year. While activity was limited, the median price in properties that sold spiked to $237,100 per unit, up 40% from last year’s figure. Cap rates averaged approximately 5.5%.
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