Chicago multifamily landscape is on strong footing, led by improving supply dynamics and strong investment activity, according to Colliers'' mid-year market sector report.
Currently, occupancy is sitting at 96.5 percent, which, according to the CRE brokerage, is the strongest rate in "several years." Also, average multifamily asking rents rose in 2025 by 4.2 percent to $2,151.
How did we get here? Well, it was a bumpy road from the supply trends coming out of the pandemic; completions finally peaked at 9,174 units in 2023. As a result, rent growth slowed to the three to four percent range between 2023 and 2024, down from the 10.4 percent surge in 2022. Occupancy in 2022 was 96.2 percent prior to falling and staying at 95.3 percent before 2025.
But now — there's been a complete reversal in the Windy City, with the city set to just deliver between 4,600 and 5,700 multifamily units annually through 2029, according to Colliers projects.
"A sharp pullback in new supply is allowing existing assets to absorb demand and stabilize revenue," the report said.
That's encouraging more multifamily investment, with $4.34 billion in volume posted in 2025, well above 2024's $3.3 billion total. Another important element is the diverse labor market in the city, with jobs across finance, logistics, healthcare and professional services. This is all leading to stable renter demand, according to Colliers.
"Chicago enters the next phase of the cycle with demand firmly in the lead and fundamentals positioned to strengthen," it said.
"Investors are increasingly focused on the improving fundamentals as the supply cycle recedes.
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