Chicago Q1 Multifamily Market Insights: Conditions stabilize after rapid growth in 2021
Highlights:
- Property fundamentals posted modest improvements across the Chicago market in the first quarter, as the vacancy rate dipped and asking rents held steady. Demand for existing units continues to outpace new supply growth.
- The vacancy rate in Chicago ticked lower at the start of the year, dropping 10 basis points in the first quarter to 5.2 percent. Year over year, the rate declined by 60 basis points.
- After rapid growth in 2021, asking rents remained essentially unchanged in the first quarter at $1,688 per month. Year over year, rents jumped 14.5 percent.
- During the first quarter, the median sales price rose to $150,300 per unit, and cap rates averaged around 4.6 percent. Sales velocity got off to a more active start to 2022 than in recent years.
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