CHICAGO—Portions of this city's downtown sometimes feels like apermanent construction site, as multifamily developers rush tosatisfy the intense demand for apartments in the urban core. Thebig concern hanging over all this activity was whether newcompletions would outrun that healthy demand.
According to Marcus & Millichap, which justreleased its 2018 US and Canada Multifamily Forecast,Chicago's multifamily market has reached that stage. It forecaststhat vacancy will edge higher this year as completions reach newhighs. In 2017, builders finished about 8,600 units, and in 2018they plan to complete around 9,900 units. Vacancy should go up to5.6% by the end of the year, an increase of 50 bps. Half of the2018 deliveries will be in the urban core, including the Loop andother downtown neighborhoods. But experts also say the currentmismatch between supply and demand is not much of a concern.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
