CHICAGO—Apartment developers throughout Chicagoland remain quite aggressive, and will complete about 8,300 new units by the end of the year, well above the 15-year average and just slightly less than 9,000 units built in 2016, according to a new market report from Marcus & Millichap.
And developers will probably maintain that robust pace into 2018, the firm believes, especially when it comes to luxury units around the urban core. All these completions, however, will put some upward pressure on vacancy rates. That in turn will lead landlords to begin making more concessions, particularly in the class A segment. But with business confidence and job openings at near all-time highs, strong rent growth should continue, even with the increase in vacancy.
“Businesses finally have the assurance to expand their footprints after years of tepid growth following the Great Recession,” says William E. Hughes, senior vice president, Marcus & Millichap Capital Corp. “These conditions are allowing pent-up households to form, creating new apartment demand.”
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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.
