Chicago Multifamily Deliveries Drop 43%
New multifamily deliveries in Chicago dropped 43% year-over-year at the end of 2025 as the city's construction pipeline stalled. This supply freeze, contrasted with a ~95% occupancy rate, could provide landlords with increased pricing leverage in the coming leasing season.
The slowdown in new apartment deliveries is more pronounced in downtown Chicago, which saw only 243 new units completed in 2025. This sharp drop in new construction is largely due to elevated costs and difficulties in securing financing. The city's overall construction pipeline ended 2025 with just 4,131 units underway, a figure significantly below the ten-year average of 6,380 units. Despite the construction lull, Chicago's multifamily market fundamentals remain robust. The vacancy rate was a low 5.0% at the end of 2025, well below the national average. This tight market has fueled rent growth, with a 3.4% increase in asking rents year-over-year. Projections for 2026 anticipate further rent growth of around 3% due to the persistent shortage of new units. In the Gold Coast, the competitive landscape for luxury properties remains intense. For instance, the renovated Art Deco building, The Deco, offers a range of apartment tiers from vintage to "prestige" with modern finishes like quartz countertops and stainless steel appliances. Community amenities are a key differentiator, with The Deco providing a 24-hour fitness center and a rooftop patio with lake views. Other high-end competitors like Millie on Michigan, located just off the Magnificent Mile, are actively using concessions to attract tenants. One notable offer includes two months of free rent for those signing longer-term leases of 18-20 months. This property boasts a comprehensive suite of amenities, including a rooftop pool, a resident lounge with co-working space, and a dog lounge with a grooming station. The pipeline for new competition in the Gold Coast is beginning to take shape. A new 28-story tower with 307 units has been proposed for the corner of State and Elm streets by developer Convexity Properties. If approved, construction is slated to begin in June, with a projected completion in the spring of 2028, adding significant new inventory to the neighborhood. With the peak leasing season from March to August approaching, the limited new supply across the city is expected to give landlords the upper hand. The combination of high occupancy and a slow development pipeline suggests a market favorable for rent increases. Concession levels across the market have been reported as subdued, signaling strong landlord pricing power.
