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Chicago Multifamily Market 2025 Q4 Update | Strong Rents, Low Vacancy & Broker Outlook
The Chicago multifamily market 2025 remains one of the most stable in the country.
Vacancy rates sit below 5 %, rent growth is positive, and investor activity continues despite higher financing costs.
Owners and investors alike view the market as an attractive blend of income stability and long-term appreciation.
Chicago Multifamily Market 2025 Overview
According to CoStar Analytics (Q4 2025):
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Vacancy Rate: 4.7 % – among the lowest major U.S. metros
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12-Month Rent Growth: 3.5 %
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Average Asking Rent: $1,878 / month ($1.85 / SF)
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Absorption: ≈ 8,600 units vs. 4,956 delivered
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Under Construction: ≈ 9,300 units (1.6 % of inventory)
Tight supply and consistent absorption continue to define the Chicago multifamily market 2025, supporting steady rent increases through next year.
Rent Growth and Vacancy Stability
Rents rose 3–4 % year-over-year. Class B and suburban assets captured the largest gains as renters searched for affordability near transit corridors and employment centers.
Suburban Cook and DuPage Counties recorded the lowest vacancy levels (< 4.8 %), while downtown’s recovery continued with new absorption in West Loop and River North.
These trends point to durable income for landlords holding stabilized buildings.
Cap Rates and Investment Performance
Private capital remains dominant across the Chicago multifamily brokerage landscape.
Buyers focus on cash-flowing assets in the $2 M–$20 M range with modest rent upside.
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Average Cap Rate: 6.6–6.8 %
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Price Per Unit: $150 K – $275 K
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Price Per SF: $185 – $325
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Sales Volume (12 mo): ≈ $4.5 B
While institutions have slowed, family offices and 1031 exchange buyers sustain momentum. Relative to coastal metros, Chicago continues to deliver above-average yields and long-term stability for investors.
Development Pipeline and Supply Constraints
High construction costs and financing friction have slowed new starts. Only 1.6 % of existing inventory is under construction — roughly 9,300 units across the metro.
This limited pipeline should keep rent growth positive into 2026 and enhance valuation strength for owners considering sale or refinance.
Owner Strategy and Next Steps
For property owners tracking the Chicago multifamily market 2025, the key is timing and preparation.
Maintain occupancy, streamline expenses, and document collections to maximize market value.
Buyers are underwriting stable Class B and renovated workforce assets at 6.4–6.8 % cap rates with modest rent growth assumptions.
If you plan to sell an apartment building in Chicago, prepare a clean rent roll, address maintenance items, and engage a qualified Chicago apartment sales broker to benchmark against current comps.
If you intend to hold, review refinance options ahead of 2026 maturities to capture favorable terms.
Either path benefits from Chicago’s tight vacancy and steady tenant demand.
For a year-over-year comparison of pricing and rents, see the Chicago Multifamily Market 2024 Recap.
Submarket Highlights
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Aurora: Vacancy 3.5 %, rent growth 3.4 %. Full Aurora Report → Coming Soon
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Naperville / Lisle: Limited land and premium renter profile. Full Report → Coming Soon
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North DuPage: Low supply and strong pricing. Full Report → Coming Soon
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Southeast DuPage / Glen Ellyn: Redevelopment corridors showing momentum. Full Report → Coming Soon
Each submarket offers distinct opportunities for owners considering valuation or sale strategies.
Outlook for 2026
Chicago’s multifamily market should see continued rent gains and low vacancy through next year. Population stability, employment diversity, and limited supply support ongoing value appreciation.
Investors seeking yield will favor well-maintained Class B and smaller Class A assets in transit-served locations.
For owners, the coming year presents an opportunity to realize equity or reposition for the next growth cycle.
Engage an experienced Chicago real estate investment broker for a data-driven valuation and marketing strategy.
Request the Full Chicago Market Report
Access the complete CoStar data, sales comparables, and trend analysis for Q4 2025 below.
Discuss Your Property’s Value
Contact Randolph Taylor, CCIM, a licensed Chicago multifamily broker, to review your property’s value, cap rate range, and sale timing.
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