Chicago Apartment Vacancies Reach Three-Year Low

With job growth in the Chicago region nearly doubling year over year, apartment vacancies have reached a three-year low, says Marcus & Millichap. Simultaneously, the firm says in its third-quarter Chicago apartment report, deliveries have reached the highest year-over-year total since 2000, as 10,200 units were added to inventory during the past four quarters.

Developers have another 15,300 rentals coming up, with nearly all submarkets in the metro area scheduled to receive additional units by the end of 2020. Allaying concerns about possible overbuilding, the report notes that the new product has been well received.

Since June of last year, Class A vacancy metro-wide dropped 100 basis points to 5%, the largest decline among the classes, while rent jumped 5.7%. Lower-cost rentals are also in demand. Class C vacancy rested at 4.2% in Q2, the tightest rate by class type, with effective rent posting the biggest gain of 6.1%.

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