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Chicago & Midwest  + Apartments  | 

“Elevated Pricing” May Bring More Multifamily to Market

By nearly all measures, the Chicago region’s multifamily fundamentals have shown healthy year-over-year gains, Marcus & Millichap reported. Vacancies declined by 20 basis points year-over-year, as newly-built units were absorbed, and rents were up 4.2% during the same period.

In some submarkets, the gains were even stronger. Central Cook County saw a 7.2% Y-O-Y increase in rents, and a 110-bp drop in vacancies.

Even so, year-to-date sales volume was down slightly Y-O-Y. However, Marcus & Millichap cited investor concerns last fall over tax reform, as well as limited listings.

“Moving forward, some owners may place their properties on the market to capitalize on elevated pricing,” according to Marcus & Millichap’s fourth-quarter report on Chicago multifamily. “The average price per unit is roughly 45% higher than the previous cyclical peak.”

Helping drive demand is the 65% propensity of young Chicago-area professionals to rent, says Marcus & Millichap.


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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Development
  • ◦Sale/Acquisition
  • ◦Lease
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