Chicago, IL Multifamily Market Report | Matthews | Q4 2025

Market Overview

Chicago's multifamily market held vacancy at 4.9% through Q4 2025, one of the tightest readings among major U.S. metros and a figure that declined 3.7% on a rolling 12-month basis. Rent growth reached 2.3%, supported by steady absorption and a construction pipeline running well below recent annual averages. Investment activity totaled approximately $1.7 billion, with cap rates at 5.4% reflecting continued buyer confidence in the market's durability. Chicago's diversified economic base, anchored by finance, healthcare, logistics, and professional services, continues to underpin household demand. With units under construction near 8,000 and starts declining, the supply outlook remains favorable heading into 2026.

About Matthews

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 Q4 2025 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.