Fundamentals Return to Pre-Pandemic Levels, Boosting Investment and Out-of-State Interest
- Positive absorption resurfaces across all submarkets. Chicago recorded a recent spike in apartment demand that restored vacancy and rent metrics to levels last seen before the health crisis.
- Epicenter of inventory growth shifts. For the first time since 2004, suburban deliveries exceed urban completions.
- Chicago notched an 8 percent rise in deal flow over the trailing-12- month period ended in June, one of the largest gains among Midwest metros.
- Average pricing fell 2 percent during the past year to $155,500 per unit, a figure that trailed the national mean by 9 percent.
- Urban submarkets have accounted for two-thirds of all apartment transactions since last July, with trades most concentrated in North and South Lakefront neighborhoods.
- Strong renter demand for suburban units has drawn more out-of-state investors to locales outside the CBD including North and Northwest Cook County.
* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.