Market Snapshot Chicago Q1 2025

Market Overview

Chicago's multifamily sector outperformed national averages in early 2025, driven by limited new supply and strong renter demand. The metro area reached a 95.6% occupancy rate—one of the highest among major U.S. markets—while rent growth accelerated to 3.3% year-over-year. Developers remain cautious, with construction starts down more than 60% from 2022 levels and activity concentrated in outer submarkets like North Will County and South Lake County, Indiana. Despite local policy challenges, particularly in high-cost areas subject to affordability mandates, investor interest is rebounding. The quarter saw $777 million in transactions, up 56% from the prior year, underscoring renewed confidence in Chicago’s market fundamentals.

About MMG Real Estate Advisors

MMG Real Estate Advisors is a boutique investment advisory firm focused exclusively on the multifamily sector. Their research combines rigorous data analysis with on-the-ground insights from active deal-making, offering a uniquely operator-informed view of the market. MMG’s quarterly reports are known for highlighting supply-demand dynamics, pricing trends, and underwriting realities across U.S. metros. By blending institutional research with frontline experience, MMG provides actionable intelligence for owners, developers, and investors navigating today’s multifamily landscape.

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