"We're seeing a steady stream of multifamily construction inChicago, and we haven't seen that shutting down," says real estateeconomist Nancy Chesley, who covers the market for Property &Portfolio Research.

Of the 14,266 units started in the year ending June 2002, 56%were for condominiums and townhomes, rather than rental units,Chesley tells GlobeSt.com. The only city that comes close to thatpercentage, according to Property & Portfolio Research, isWashington, D.C. at 37%.

Rental vacancy rates are lower than other markets, Chesley adds,but competition from those new condominium units as well ascontinued attractive mortgage interest rates play havoc with aproperty owner's tenant pool. There may be some good news on thehorizon for those owners, however.

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