Aurora Naperville Multifamily Market Q3 2024 Trends

Posted on by Randolph Taylor
Aurora Naperville multifamily market Q3 2024 report

Aurora Naperville Multifamily Market Report – Q3 2024

Introduction

The Aurora Naperville multifamily market in Q3 2024 remains strong, showing steady rent growth and stable demand. This submarket offers solid opportunities for property owners and investors looking to maximize returns. This report provides a comprehensive analysis of recent trends, investment activity, and future projections.

Download the Full Q3 2024 Report Here

Aurora Naperville Market Overview Q3 2024

The Aurora Naperville market experienced a rise in average asking rents, reaching $1,848 per unit in Q3 2024, representing a 0.2% increase from Q1. Additionally, effective rents, which exclude concessions, climbed to $1,756, highlighting consistent tenant interest.

  • Unit-specific rents:
    • Studios: $1,490
    • One-Bedrooms: $1,636
    • Two-Bedrooms: $1,979
    • Three-Bedrooms: $2,573
  • Vacancy Rate: The rate increased slightly to 4.8%; however, it is expected to decline to 4.7% by year-end, staying below the metro average of 5.3%.

Rent Trends in the Aurora Naperville Multifamily Sector

Annual rent growth in the Aurora Naperville sector has averaged 1.2% over the last decade. In Q3 2024, effective rent rose by 0.1%, demonstrating resilience despite broader economic pressures.

Factors Influencing Rent Growth:

  • No New Deliveries: Since there were no new units added in 2024, rent pressures have remained upward.
  • Upcoming Supply: A total of 521 new units are planned between 2025 and 2026, accounting for 5.7% of the metro’s projected supply.
    • Lucca Fox Valley (323 units) is set for completion by May 2025.
    • Heritage Place (45 units) will likely be completed in early 2026.

Key Insights for Aurora Naperville in Q3 2024

Investment demand in the Aurora Naperville market remained robust throughout Q3, especially for Class B/C properties that deliver solid returns.

Q3 2024 Investment Activity:

  • Sales Volume: Total transactions reached $257.1 million across five deals.
    • The largest deal was a $109 million sale in Naperville, with a price per unit of $260,766.
  • Cap Rates: Cap rates averaged between 5.1% and 6.1%, making the submarket attractive for investors seeking stable returns.

Investment Trends in Aurora Naperville Q3 2024

The employment rate in the Chicago metro area increased by 0.3% in Q2 2024, supporting demand for multifamily housing in the Aurora Naperville market. Furthermore, median household incomes grew by 0.9%, aligning well with rent growth and maintaining tenant affordability.

Key Strategies for Investors:

  • Implement Strategic Rent Adjustments: Consider modest rent increases to boost returns while ensuring tenant satisfaction.
  • Target Class B/C Properties: These assets offer reliable cash flow and are likely to attract steady demand.
  • Enhance Property Features: Upgrading amenities can increase tenant retention and reduce vacancy rates.

Q3 2024 Aurora Naperville Apartment Projections

The Aurora Naperville apartment market is poised to sustain growth, supported by new construction, economic stability, and increasing tenant demand.

Future Projections:

  • Rents: Expected to reach $1,854 by the end of 2024, with a 1.6% annual growth projected through 2026.
  • Vacancy Rates: Likely to stabilize at 4.7%, driven by strong tenant interest.
  • Investment Opportunities: Upcoming developments offer potential acquisition targets for investors by 2025.

Maximize Your Property’s Value in Aurora Naperville

As a Senior Associate with eXp Commercial, I specialize in the Aurora Naperville multifamily market. With over 15 years of experience in this submarket, I provide tailored strategies to help property owners maximize their investments. My services include:

  • In-Depth Valuations: Free market-based assessments.
  • Targeted Marketing: Campaigns that drive competitive offers and maximize sales price.
  • Strategic Negotiation: Expertise in securing the best possible terms and closing deals smoothly.

Schedule a Call with Randolph Taylor, CCIM

Contact Information

Stay ahead in the Aurora Naperville multifamily market by keeping informed of trends and opportunities. Download the full report and connect with me for personalized guidance.

Download the Full Q3 2024 Report Here