Chicago & Midwest + Downtown + Apartments | September 6, 2018

Chicago Multifamily Market Headed for Further Growth according to a new northmarq report

Class A Apartment Rents Tick Up to New High

The average monthly rent for Class A downtown apartment properties reached a new high of $3.18 per square foot as of June 30, according to Integra Realty Resources. That represents a 5.7% increase year over year, while Q2 occupancy for Class A multifamily held steady at 94%.

Crain’s Chicago Business reported that the strong Q2 extended a streak that began nearly nine years ago, as the economy climbed out of the recession. As more Chicagoans favor renting over owning and strong downtown job growth continues, demand is surging, giving owners leverage to boost rents.

For apartment landlords, “It just keeps on going,” said Ron DeVries of IRR’s Chicago office. “It’s the gift that keeps on giving.”

Although this rent growth has been accompanied by thousands of new units coming on line, IRR forecasts that developers will complete just 3,000 apartments downtown in 2018, down from a record 4,348 in 2017.

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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 13-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 15-20 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).

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