Chicago, IL Multifamily Market Report | Matthews | Q1 2026

Market Overview
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Chicago closed Q1 2026 with vacancy at 5.0% and rent growth at 3.1%, two metrics that put the market well ahead of most major U.S. metros. The supply picture tells the story: with only about 9,800 units under construction, representing just 1.7% of total inventory, Chicago simply is not being overbuilt. Asking rents averaged $1,900 per unit, with gains holding across Class A, B, and C products alike. Sales volume reached $1.9 billion for the quarter, with pricing at $229K per unit and cap rates at 6.7%, as institutional buyers stay active on well-located assets. The metro's foundation -- 24 Fortune 500 headquarters, a workforce where 39% hold bachelor's degrees or higher, and relative affordability versus coastal peers -- continues to underpin durable renter demand.

‍About Matthews

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Matthews Real Estate Investment Services is a national commercial real estate brokerage and advisory firm serving multifamily owners, investors, and developers across major U.S. markets. Their Chicago, IL Q1 2026 multifamily market report tracks vacancy, rent growth, cap rates, and sales volume to help clients assess market conditions and refine investment timing. To read the full report, click here.