Gold Coast Competitors Hold Pricing Steady
Chicago's Gold Coast luxury multifamily market is showing stability with no significant pricing shifts, new concessions, or amenity upgrades from key competitors. Properties including Elysian (Waldorf Astoria), Park Tower (Park Hyatt), Millie on Michigan, and The Deco have reportedly made no changes to their leasing strategies, signaling confidence in the market's pricing power ahead of the peak season.
- The Gold Coast/Old Town submarket led all downtown areas with a 7% year-over-year increase in price per square foot in the first quarter of 2025, rising from $4.05 to $4.33. This pricing power is demonstrated by renters paying more for less space, as the average unit size in the submarket simultaneously decreased by 5.4%. - While new construction is slowing city-wide, with a projected 40% drop in completions for 2025, new inventory is planned for the Gold Coast. Developer Convexity Properties has proposed a 28-story, 307-unit apartment tower at State and Elm streets, targeting a spring 2028 completion. - The decision to hold pricing steady is supported by high market-wide occupancy, which stood at 95.3% across Chicago at the end of 2024, significantly above the 10-year average of 93.7%. - Investor confidence in the area remains high; the Millie on Michigan apartments were acquired in July 2025 by a joint venture that cited it as a top asset in a "supply-constrained market." The property was 96% leased at the time of the sale, less than three years after its 2022 completion. - The Deco, located at 1400 N Lakeshore Drive, utilizes a tiered finish strategy to maintain pricing stability, offering Prestige (newest), Premium, and Vintage level renovations to appeal to different price points within the luxury market. - The broader amenity trend in Chicago has shifted from an "amenity arms race" to more curated experiences. Newer downtown developments are attracting residents by converting exclusive penthouse levels into shared lounges or adding unique sports facilities like boxing rings and basketball courts. - The Waldorf Astoria, where the Elysian residences are located, contains 51 private condominiums above the hotel. Residents have access to five-star hotel amenities, including a 14,000-square-foot spa, 24-hour room service, and an indoor pool. - Park Tower, which includes residences above the Park Hyatt, primarily features larger floor plans ranging from two to five bedrooms. Two-bedroom rentals in the building typically start around $8,000 per month.
