CHICAGO – According to the annual multifamily housing industry forecast Preview 2024 hosted by the Chicagoland Apartment Association on November 8, both the city and suburban markets possess high occupancy rates and healthy demand leading into 2024. As researched and studied by Ron DeVries, senior managing director of Integra Realty Resources, renters will continue renting longer as mortgage rates stay elevated, median home prices are strong, and the volume of single-family homes for sale has cratered.
“Downtown rents are currently close to flat. Class A rents are down .84% and Class B are up 1.66% year-over-year, while occupancy for both sits just under 94%,” DeVries reports. “We’re anticipating a total of 2,100 new units for absorption in 2023, plus there are another 15 new multifamily buildings being built downtown which will add another 3,600 new units in 2024. I don’t anticipate significant rent growth in 2024, but capital markets are slowing supply, which could result in higher rents in 2025.”
“This new research seems to be good news for renters, especially as prices have remained essentially flat in the downtown market,” said Michael Mini, executive vice president of the Chicagoland Apartment Association. “Our member companies agree with DeVries’ assessment that relatively high numbers of people who continue to work from home are driving demand for location and amenities, and of course downtown Chicago offers many of those sought-after buildings. 2024 will deliver even more of those popular new options.”
DeVries added, “While living in the city is the choice for many, portions of the suburban market are even hotter. Occupancy overall in the suburbs is high at almost 98%, which has resulted in a slightly higher year-over-year rent growth of 4.5%. Continued good news is I have seen a significant number of new proposals for suburban multifamily developments, but most are not under construction quite yet.”
About the Chicagoland Apartment Association
The Chicagoland Apartment Association (CAA) represents more than 6,000 apartment professionals who own and/or manage over 270,000 market-rate and affordable rental units in 1,500 apartment properties ranging from high-rises to two-flats across the Chicagoland region. CAA provides professional development and networking opportunities to apartment industry professionals and advocates on their behalf at the state and local government level. For more information, please visit www.caapts.org.