CHICAGO—Apartment developers throughout much of Chicagoland have remained quite aggressive in 2017, and will complete around 8,580 new units by the end of the year, well above the 15-year average, according to a new market report from Marcus & Millichap. The total will also be only slightly less than the number completed in 2016. This wave of new supply will probably outpace the increase in occupied units, and although this has not caused much worry, the company believes development around the urban core may be at or approaching a saturation point, particularly in the class A segment.
Since last April, developers have completed 5,580 new units in the city, and pushed up the vacancy rate to 5.1%, a jump of 100 bps. But rising vacancy in the urban core has yet to trigger a slowdown in rent growth. The average citywide rent reached $1,739 per month in March, up 7.0% from one year ago
And although much of the new development and activity is in and around the city's CBD, the suburbs have not been left out.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
