Search
 

Local Multifamily Bull Market Unstoppable

CHICAGO-Neither slowing job growth or rising energy expenses are stopping the bullish Chicago area multifamily market, Marcus & Millichap says. Low interest rates and omnipresent condominium converters are among those to thank.

By Mark Ruda | Updated on September 04, 2001

CHICAGO-Job growth is slowing to a crawl, and higher energy costs are cutting into multifamily property owners’ net operating incomes. Neither, however, poses a large enough problem to derail the bullish Chicago area multifamily market, according to research by Marcus & Millichap Real Estate Investment Brokerage Co.

“Despite the national economy continuing to sputter, the Chicago apartment market will realize strong gains in rents and values in the next 12 months,” says Marcus & Millichap senior vice president and regional manager Greg A. Moyer. “High demand for rental units in the region compounded by the removal of stock from active condominium conversion activity are expected to strengthen the performance of the local apartment market this year. The next 12 months are expected to bring continued low vacancy, higher rents and increased values.”

Marcus & Millichap forecasts the market’s overall vacancy rate of a tight 4.3% to remain steady over the next 12 months, while rents increase by 6% and sales prices by 4%. Now at $985 per month, the average rent in the market has increased 22% since 1998, according to Marcus & Millichap. Meanwhile, sales prices are expected to crack $50,000 per unit this year, the firm predicts, which would be a 37% jump in the same period.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.