Market Trends

This decline in demand is not due to affordability but more so due to “a freeze in new household formation,” for example, roommates separating or children moving out of a parents’ home rather than residents moving from Class A to Class B and Class C or from higher-priced cities to more affordable suburbs.

This summer, for the first time in U.S. history, median rent costs in major cities surpassed $2,000 per month, according to a Redfin report issued in May.

Executives at banks with some of the highest commercial property loan concentrations were careful to emphasize earlier this year that they’ve got things under control.

The Chicago multifamily market features some of the most steady and stable demand fundamentals in the United States. Over the past five years alone, Chicago increased its occupancy levels and households and doubled its rent growth returns, all while population growth declined in absolute numbers.

>Chicago officials are soliciting proposals to convert vintage office buildings into hundreds of affordable apartments on a stretch of the city’s one-time LaSalle Street financial corridor that in recent years has lost large tenants to new developments.

For most areas in downtown Chicago, the precipitous drop in office occupancy is devastating to more than just the office landlords. Fewer downtown workers equal less demand for retail tenants and for hotels relying on midweek business travel.