Chicago Multifamily Property Blog

In 2023, the U.S. multifamily market has seen a significant upswing in renter demand, especially for mid-priced apartments rated three stars. This shift marks a recovery from a sluggish performance in the latter half of 2022.

For renters who’ve felt the sting of rapidly increasing costs, there’s a sigh of relief on the horizon. The rapid inflation of rent prices, which has been a pressing concern for many in recent years, is showing signs of stabilization.

Investors are flocking to student housing as its rent growth outpaces traditional multifamily properties, lured by its resilience during economic downturns and higher-than-average returns.

More than half of the country’s 100 largest cities report decreasing rents. Significant drops are seen in “zoom towns” like Arizona, Nevada, Idaho, with Oakland, California, noting an 8.7% decline. Meanwhile, Midwest and New England cities, such as Chicago and Boston, show modest recent rent growth compared to prior years.

For years, renting in the suburbs meant shelling out less than city rents. However, recent data indicates that this traditional disparity is lessening, leading many to wonder why.

The CRE industry is navigating challenging waters with higher interest rates, limited financing options, and a slowing economy. Yet, promising developments (“green shoots”) suggest potential growth opportunities.