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Chicago Multifamily Market Headed for Further Growth
After a strong second quarter, Chicago’s multifamily market is projected for further growth in the remainder of 2022, Northmarq reports. The report anticipates continued rent growth—albeit more slowly–and local job growth as well as continued undersupply of new apartments.
“While most markets across the country are recording a steep rise in deliveries this year, supply growth in Chicago is forecast to come in below trend,” says Northmarq’s report. “As a result, absorption is expected to outpace deliveries in the next several periods, supporting a slight dip in the vacancy rate.”
Investment sales are expected to sustain momentum in coming quarters, although the number of deals will likely trail last year’s. “The sale of newer, Class A assets is forecast to pick up by year end, which will likely pull sales prices higher,” the report states. Local cap rates should average 5% to 5.5% for the balance of 2022.
- ◦Lease
- ◦Sale/Acquisition
- ◦Development
