Chicago 2Q23
Multifamily Market Report


average rent


average occupancy rate


ytd sales volume


YoY rent change


yoy occupancy change

52 YTD

individual transactions

Supply & Demand


4,062 Units

YTD: 5,495

2,488 Units

YTD: 4,111

Annual Demand vs Completions

2023 YTD
  • Planned
  • Pre-Planned

Demand Trends

  • In Q2 2023, the Chicago apartment market witnessed a substantial surge in demand, with renters absorbing over 4,000 units during the crucial spring leasing season. This marked a significant rebound following a more muted first quarter which saw the absorption of 1,433 units.
  • Of the 20 Chicagoland submarkets, only three saw net move-outs in Q2. Evanston led the decline with 520 fewer units occupied.  In contrast, The Loop recorded the most absorbed units at 920, while concurrently surpassing the 838 that came online during the same period. This shifted the occupancy rate higher by 30 basis points on a quarterly basis. With the 'return to office' trend growing, The Loop and similar urban adjacent submarkets may see steady or increased occupancy in future quarters in Chicago.

Completion Trends

  • In the second quarter of 2023, the Chicago apartment inventory expanded by 2,488 units, which aligned with the historical average for quarterly deliveries. Notably, The Loop submarket accounted for over a third of these new units entering the market. Of note, despite the substantial increase in supply, renter demand in the Loop outpaced the heightened availability of apartments.

  • Over the course of the previous four quarters, there were 6,761 new apartment completions, slightly below the pace of deliveries set over the previous five years. However, the pace of deliveries is projected to increase to more typical levels in the upcoming four quarters.

Demand Outlook

  • Chicago's apartment market is projected to normalize over the course of the next four quarters, driven by strong employment gains in the metro area. According to the latest data from the Bureau of Labor Statistics, Chicago experienced a significant year-over-year increase of nearly 82,000 jobs in May. These employment gains are expected to have a direct impact on the residential sector, by driving new household formation and fostering sustained demand into 2024.

  • With the pandemic further in the rearview mirror, employees are gradually returning to their office spaces. This shift is likely to bring about a resurgence in interest for the previously hard-hit downtown residential area. As the return to office trend intensifies, we can anticipate an uptick in demand and increased residential activity in the coming months in the city core and adjacent neighborhoods.

New Supply Outlook

  • While Chicago is considered a prominent gateway market, it still exhibits some key features typical of traditional Midwest apartment markets. Unlike several other core and core plus markets grappling with excessive construction pipelines, Chicago's current construction pipeline comprises 13,000 units, which amounts to a mere 1.8% of the existing inventory in the market.

  • In the more immediate future, roughly 7,200 units are expected to come online over the next four quarters, aligning annual deliveries closer to historical averages. On a submarket level, the core urban submarkets of The Loop, Streeterville / River North, and Evanston / Rogers Park will contribute to over 50% of the new units being added to the market. The remaining units under construction are relatively evenly distributed across suburban and outlying areas.

Demand Trends

  • In Q2 2023, the Kansas City apartment market experienced a resurgence in demand with renters absorbing over 1,200 net units, slightly below the seasonal average, but nonetheless highlighting the resilience of the Kansas City apartment market.


  • Eight out of 11 submarkets posted positive net absorption, with the South Kansas / Grandview submarket leading for absorbed units due to the opening and leasing commencement at two new Class A communities in Belton, which added 700 new units to the submarket.

Completion Trends

  • Q2 2023 saw Kansas City's apartment inventory expand by 1,240 units, with the South Kansas City / Grandview submarket contributing over half with 700 units.


  • This submarket's rapid growth has caught developers’ attention. Over the past four quarters 1,372 units have been added to the submarket’s inventory, significantly outpacing the Shawnee / Lenexa / Mission submarket's 544 units over the same time frame.

Demand Outlook

  • The overall Kansas City, MO-KS apartment market is projected to experience sustained demand over the next four quarters, with an anticipated absorption of 3,052 units. This underscores a steady market outlook for the upcoming period.


  • Central Kansas City and Olathe/Gardner submarkets are projected to be significant demand hotspots, with expected annual demands of 1,017 units and 1,031 units respectively.

New Supply Outlook

  • The Kansas City, MO-KS apartment market is set to further expand its inventory over the next four quarters, with a substantial increase of 3,809 units projected.


  • The Olathe / Gardner and Central Kansas City submarkets are poised to contribute significantly to the new supply, with anticipated additions of 1,224 units and 1,094 units respectively.

Occupancy & Rent Trends



Average Monthly Mortgage Payment


Average Monthly Rent

* The Average mortgage payment is based off a median home sales price of $375,900 as reported by the Redfin.

Occupancy trends

In Q2 2023, Chicago’s apartment operators and investors found reason for celebration as rental demand significantly rebounded during the crucial spring leasing season. The number of renters outstripped new unit deliveries by a sizable margin, driving the average occupancy rate up by 30 basis points from the Q1 figure to a healthy 95.5% in June. Of Chicago’s 20 submarkets, only three experienced quarterly declines in occupancy rates. In contrast, the upscale suburb of Naperville enjoyed a substantial 90 basis point increase over the first quarter figure, elevating the suburb’s average occupancy rate to 95.9%. Among the major urban submarkets, the Lincoln Park / Lakeview area maintained the highest occupancy rate at 96.5%. Breaking this down further, Class A, B, and C properties registered occupancy rates of 96.0%, 97.8%, and 99.4% respectively in this submarket.

A comparison of apartment product classes in Chicago reveals a relatively narrow divergence in occupancy rates. On the low end, Class A properties recorded an occupancy rate of 94.8% in the second quarter, while Class B properties registered at 96.2% on the high end. With only a 140-basis point difference separating these two product classes, the variation in occupancy rates is minimal. Delving further, Class B properties saw the largest quarterly increase in occupancy, rising 40 basis points to 95.4%. This uptick nudged the average occupancy rate for Class B communities just above its prior five-year average. Meanwhile, both Class A and C properties reported an occupancy increase of 10 basis points over the preceding quarter.


Despite a slight moderation in rent growth during the second quarter, the broader Chicago apartment market continues to exhibit strong health. With annual rent growth measuring 4.8% in June, the rate remains significantly above both the prior five-year average and the long-term historical average in Chicago. In fact, this figure places Chicago as the seventh-highest market for rent growth in Q2 among the 50 largest apartment markets in the U.S. The Midwest was well-represented in the top ten, housing five of the leading 10 markets.

Analyzing product class performance within the Chicago market reveals that above-average rent growth was largely driven by Class B and C apartment communities, which registered annual growth rates of 5.9% and 5.8%, respectively. While Class C apartments didn’t witness the same double-digit rent growth in 2022 as its Class A and B counterparts, the Class C segment has seen a more modest decline from its peak rent growth holding steady at 5.8% as of June this year. In stark contrast, Class A communities, which stood at a peak of 17.9% just four quarters ago, have experienced a dramatic fall of 14.5 points, settling at an annual growth rate of 3.3% in the most recent quarter. It’s worth noting that the higher the rent goes, the farther it can potentially fall. However, the cooling down in Class A rents has been particularly marked.

Urban Submarket Rent & Occupancy

Urban SubmarketsAverage OccupancyAnnual Occupancy ChangeAverage Monthly RentAnnual Rent Change
The Loop94.3%-1.1%$2,5043.1%
Streeterville/River North95.1%-0.5%$2,7842.4%
Lincoln Park/Lakeview96.5%-0.7%$2,2854.9%
Evanston/Rogers Park/Uptown94.3%-1.9%$2,1034.4%
Bronzeville/Hyde Park/South Shore94.7%-0.4%$1,6073.8%
South Cook County95.2%-1.9%$1,3098.4%
Central Cook County94.5%-0.5%$1,8617.9%
Weighted Average94.9%-0.9%$2,2724.1%

Suburban Submarket Rent & Occupancy

Suburban SubmarketsAverage OccupancyAnnual Occupancy ChangeAverage Monthly RentAnnual Rent Change
North Cook County95.8%-1.0%$1,8248.6%
Arlington Heights/Palatine/Wheeling95.5%-1.4%$1,84210.8%
North DuPage County96.4%-1.2%$1,5496.6%
Central DuPage County95.1%-2.1%$1,9027.8%
Southeast DuPage County95.4%-2.1%$1,7397.2%
Will County96.4%-0.3%$1,6605.8%
Far Northwest Chicago Suburbs96.5%-1.4%$1,5625.0%
Lake County/Kenosha96.2%-1.4%$1,6073.0%
Weighted Average95.9%-1.4%$1,6765.9%

Units by Urban Submarket Delivering in 2023


Units Under Construction


Units UC Delivering In the Next 4 Quarters

Percentage of Units Under Construction

The Loop - 4,623
Streeterville/River North - 1,545
Lincoln Park/Lakeview - 583
Evanston/Rogers Park/Uptown - 1,598
Bronzeville/Hyde Park/South Shore - 203
South Cook County - 178
Central Cook County - 908

Percentage of Units Delivering Next 4Q

The Loop - 1,716
Streeterville/River North - 908
Lincoln Park/Lakeview - 244
Evanston/Rogers Park/Uptown - 1,256
Bronzeville/Hyde Park/South Shore - 123
South Cook County - 99
Central Cook County - 747

Units by Suburban Submarket Delivering in 2023


Units Under Construction


Units UC Delivering In the Next 4 Quarters

Percentage of Units Under Construction

North Cook County - 0
Arlington Heights/Palatine/Wheeling - 76
Schaumburg - 125
North DuPage County - 293
Central DuPage County - 693
Southeast DuPage County - 70
Naperville - 0
Will County - 386
Aurora - 220
Far Northwest Chicago Suburbs - 1,034
Lake County/Kenosha - 894
Gary/Hammond - 100
Merrillville/Portage/Valparaiso - 275

Percentage of Units Delivering Next 4Q

North Cook County - 0
Arlington Heights/Palatine/Wheeling - 76
Schaumburg - 125
North DuPage County - 293
Central DuPage County - 191
Southeast DuPage County
Naperville - 0
Will County - 386
Aurora - 220
Far Northwest Chicago Suburbs - 320
Lake County/Kenosha - 443
Gary/Hammond - 0
Merrillville/Portage/Valparaiso - 0

Sales Activity

Downtown Chicago has reasserted its dominance as the metro’s hub for multifamily transactions. Even though there’s been a slight decline in sales volume over the first two quarters of 2023, multifamily property transactions have demonstrated exceptional resilience and stability when compared to other segments in the commercial real estate industry. While institutional capital continues to have a presence in Chicago, the majority of buyers have predominantly been private investors, seeking opportunities at reduced prices.

  1. FPA Multifamily
  2. Bayshore Properties
  3. JVM Realty Corp
  4. Pensam Capital
  5. Friedkin Realty Group
  1. Friedkin Realty Group
  2. Origin Investments
  3. Invesco Real Estate
  4. The Connor Group
  5. Draper and Kramer


YTD Transaction Volume

Y-O-Y Change

Individual Transaction Count

Price Per Unit

Annual Price Change

* Trailing 4Q average PPU

* Preliminary Data from RCA – Individual transaction $2.5M +


In May 2023, the Chicago Metro demonstrated substantial job growth, adding 81,900 new positions according to the Bureau of Labor Statistics (BLS). This job growth rate of 1.7% continued the strong performance from the earlier quarters of the year. The region saw considerable job gains across various sectors, with the leisure and hospitality sector leading the charge, adding 33,400 new jobs (growth rate of 7.4%). This was closely followed by the education and health services sector, which added 31,300 jobs (growth rate of 4.3%). The financial activities sector also experienced growth, adding 4,000 jobs, reflecting a growth rate of 1.3%. Chicago’s unemployment rate in May was comparably low, matching the national rate of 3.4%. The region continues to showcase robust economic performance with widespread job growth across multiple sectors.


May Annual Jobs Created


May 23 Employment growth


May 23 Unemployment rate
3.4% us may rate

Top 5 Employment Sector Annual Change

Leisure & Hospitality

Change from May 2022
to May 2023: 33,400

Percent Change: 7.4%

Professional & Business Services

Change from May 2022
to May 2023: 3,600

Percent Change: -0.4%

Education & Health Services

Change from May 2022
to May 2023 - 31,300

Percent Change 4.3%

Mining, Logging & Constr.

Change from May 2022
to May 2023 - 300

Percent Change -0.2%

Financial Activities

Change from May 2022
to May 2023 - 4,000

Percent Change - 1.3%

Hover over circles to view data
SectorChange from May 2022 to May 2023 Percent Change
Leisure and hospitality33,400 7.4%
Professional and business services(3,600)-0.4%
Education and health services31,300 4.3%
Mining, logging, and construction(300)-0.2%
Financial activities4,000 1.3%
Government5,000 1.0%
Manufacturing8,200 2.0%
Other services3,400 1.8%
Trade, transportation, and utilities3,100 0.3%

Major Economic Developments

$1.3B Expansion at O'Hare

4k Jobs Created

$2.2B Global Terminal
Construction Project

2025 Completion Date

350K SF Expansion of the
Existing Terminal 5

$250 million Biotech hub

26K SF Campus Size

Fulton Labs Campus in
The Loop

$250M Total Investment

Zuckerberg Foundation Investment In collaboration with the
University of Chicago and Northwestern University

$100M Film Studio In South Cook County

3K Jobs Created Over the Next Five Years

380K SF Facility Size

South Cook County Location

2024 Completion Date

Market Outlook

The Chicago apartment market in 2023 continues on a cautiously optimistic trajectory, with a manageable pipeline of an estimated 8,000 units expected over the next four quarters. Boosted by a healthy job market that added approximately 82,000 new jobs year over year as of May 2023, the city is poised for increased household formation. If the economy maintains its current course, the creation of new jobs in the metro area should help uphold apartment market fundamentals into 2024.

Looking ahead, there are multiple reasons to believe that job growth will stay robust in the metro. Chicago’s reputation as the Midwest’s capital and a major investment hub has attracted numerous multi-million-dollar initiatives that promise to drive future job growth. Notably, Loop Capital Real Estate Partners’ $100 million investment in a South Cook County film studio and The Chan Zuckerberg Initiative’s $250 million commitment to a biotech hub have the potential to generate thousands of jobs on their own.

Sources: RealPage; BLS; MSCI; Crain’s Chicago Business; World Business Chicago; Chicago Tribue

To Gain Further Insights Into The Chicago Market Please Reach Out To Our local Team

Image of Kieth Cade

Keith Cade

Senior Director

Ryan Carter

Associate Advisor

Connor Hobbs