Chicago, IL Multifamily Market Report | Colliers | Q1 2026

‍Market Overview

‍
Chicago's multifamily market entered mid-year 2026 as one of the most institutionally active markets in the country, with occupancy holding at 96.3% across 772,862 total units and a 2026 pipeline of just 4,604 units, a sharp pullback from recent peak delivery years. Effective rents grew 4.2% in 2025 to $2,151, with no negative rent growth recorded across the cycle, and average Class A rents now sit at $3,123 while Class B averages $2,203. After completions peaked at 9,174 units in 2023 and demand bottomed at 1,539 net absorbed units that same year, the market snapped back decisively in 2025 with absorption of 12,533 units against only 4,262 deliveries. Concessions have declined steadily to 2.1% of asking rent, and investment sales volume reached $4.3 billion in 2025 as buyer and seller expectations converged. With projected completions holding in the 4,600 to 5,700 unit range through 2029, Chicago enters the next phase of the cycle with demand firmly ahead of supply and fundamentals positioned to strengthen across all 20 submarkets.

‍About Colliers

‍
Colliers is a global real estate services and investment management firm operating across more than 70 countries. The firm offers comprehensive brokerage, capital markets, valuation, advisory, and research services. Their 2026 Mid-Year Chicago multifamily report tracks occupancy, rents, absorption, deliveries, concessions, and investment sales activity across 20 submarkets to help owners, developers, and investors assess market conditions and opportunities. To read the full report, click here.