Economic Overview
The Chicago Metropolitan Area remained relatively stable through mid-2026 despite a challenging economic environment. Chicago’s labor pool expanded, with non-farm employment reaching 4.8 million individuals in Q2 2026. During the same period, the number of households marginally decreased 0.3% year-over-year (YOY) to 3.6 million. Meanwhile, the median household income increased 4.4% YOY to $97,500.
Supply & Demand: Strong Fundamentals
By Q2 2026, the Chicago multifamily market reported an occupancy rate of 94.9%, well above the 10-year historical average of 93.8%. Of the 26 submarkets, 24 maintained stabilized occupancy rates of 93.0% or higher. Submarkets with the largest occupancy gains included McHenry County and South Loop, which rose 6.1% and 1.5% YOY, respectively. There were 1,743 total units absorbed through Q2 2026, down 59.0% YOY. Although they represent just 11.7% of the market’s total inventory, the North Shore, Kane County, Will County and Gold Coast/Old Town/Near North submarkets have generated 57.0% of total absorption.
During the first half of 2026, 2,904 apartment units were delivered, an increase of 15.0% YOY. More than half (53.2%) of new deliveries occurred in suburban submarkets, with the majority concentrated in Will County, Northwest Cook County and DuPage County. Inventory growth has moderated, reported at just 0.6%, up 10 basis points (bps) YOY. Currently, there are 31,054 proposed units within the overall Chicago market, 56.6% of which are located downtown. The West Loop/Fulton Market and Gold Coast/Old Town/Near North submarkets are leading, with 10,177 and 3,758 proposed new units, respectively. As of Q2 2026, 9,935 units were under construction, with suburban submarkets accounting for 52.8% of the total pipeline.
Pricing: Steady Growth Continues
The Chicago multifamily market remained one of the leading metros for rent growth, with effective rents increasing 3.2% YOY as of Q2 2026. Average rents reached $1,972 per unit and $2.40 per square foot (psf). The Downtown Chicago market continued to lead by a wide margin, with average rents of $3,124 per unit and $3.88 psf, up 5.3% YOY. Meanwhile, Chicago’s Non-Downtown market increased 3.9% YOY to $1,633 per unit and $2.23 psf. Suburban rents are up 1.5% YOY to $1,788 per unit and $2.02 psf.
