U.S. housing starts jumped 7.2%
U.S. housing starts surged 7.2% last month—an unexpected pop that sellers and builders are calling a sign of underlying demand and continued construction momentum reported. That uptick feeds both multifamily pipeline expectations and replacement-cost arguments for holding existing assets.
The U.S. Census reported privately‑owned housing starts hit a seasonally adjusted annual rate of 1,487,000 in January 2026, with units in buildings of five or more at a 524,000 annual rate. census.gov Downtown Chicago delivered just 243 new apartment units in 2025 and the metrowide construction pipeline stood at about 4,131 units at year‑end, a delivery cadence well below the 10‑year average that regional brokers say will keep competition for existing stock tight. chicagoagentmagazine.com Chicago asking rents rose roughly 3–3.8% year‑over‑year through late 2025 while stabilized occupancy reached about 96.3%, and local cap‑rate quotes clustered near the mid‑5% to 6% range in recent market reports. yardimatrix.com Large publicly traded apartment owners — including Equity Residential, which lists Chicago as its headquarters — entered 2026 positioned for a gradual recovery in fundamentals as institutional managers flagged a tactical preference for listed multifamily exposure while private deal flow re‑engages. investors.equityapartments.com Industry forecasts from PwC and regional boutique research groups project improving transaction activity and selective cap‑rate compression through 2026, encouraging sellers to consider tax‑deferred strategies such as 1031 exchanges and prompting private firms to scale deal teams where local supply remains constrained. pwc.com
