National Rents Up 4.4% Over Last Year
Across the U.S., market rents rose by 4.4% in the last year and are now 80% higher than they were a decade ago. This sustained national growth provides a strong macro-level context for local market performance. However, the gains come amid warnings of rising vacancy as new supply comes online.
- While some national forecasts predict rising vacancy rates in 2026 due to a surge in new supply, the Chicago market is expected to remain tight with a vacancy rate of around 5.0%, significantly below the U.S. average of 8.5%. This is largely attributed to a constrained construction pipeline, which is at its lowest level since the Great Financial Crisis. - Chicago's multifamily rent growth is projected to be between 2% and 3% in 2026, outperforming the national average. In the Gold Coast neighborhood specifically, rental prices have already increased by 5.08% over the past year, with the average rent reaching $2,550. - A significant portion of new apartment supply in downtown Chicago for 2026 will come from adaptive reuse projects, converting older buildings into residential units. These projects are expected to deliver 806 new units downtown in 2026, helping to bridge the gap caused by a decade-low number of new construction starts. - Newer, highly-amenitized luxury properties are commanding the highest rents and seeing the strongest performance in the current market. The trend is toward converting top floors, traditionally reserved for penthouses, into shared recreational spaces for all residents, offering amenities like lounges, fire pits, and premium city views. - In response to evolving renter demands, new luxury developments are heavily focused on lifestyle and convenience. Popular amenities now include co-working lounges, spa and salon facilities for private bookings, and extensive fitness centers that incorporate recreational sports like basketball courts and golf simulators. - Renters are increasingly prioritizing their lifestyle when choosing an apartment, seeking walkability and proximity to local businesses and cultural attractions in neighborhoods like the Gold Coast. There is also a growing demand for more flexible lease terms to accommodate hybrid work schedules and other non-traditional arrangements. - A new 28-story, 307-unit apartment tower has been proposed for the corner of State and Elm streets in the Gold Coast by developer Convexity Properties. If approved, construction is planned to begin in June, with a completion date in the spring of 2028, adding new inventory to the neighborhood.
