- Since April, 4,200 apartment units across 13 properties have hit the market in downtown Chicago, reflecting a surge in listings as sellers test buyer appetite.
- Rents in top-tier downtown properties climbed 6.4% year-over-year in Q2, averaging $3.99 PSF, signaling strong demand despite elevated interest rates.
- Major players like Crescent Heights, STRS Ohio, and Northwestern Mutual are bringing trophy assets to market, betting that rent growth will attract investors.
The downtown Chicago multifamily market is buzzing as landlords bring thousands of units to market, according to The Real Deal. Since April, 13 properties totaling 4,200 apartments have been listed. Owners are wagering that strong rent growth will outweigh today’s costly debt environment.
Rent Growth Drives Optimism
Rents for Class A buildings climbed 6.4% year-over-year in the second quarter. One-bedroom apartments now average nearly $2,800 per month, according to CoStar. Chicago ranks No. 2 in rent growth nationally, giving owners confidence even as borrowing costs stay high.
New Listings Across the City
Fresh listings span Streeterville, River North, and Fulton Market, with more assets hitting the block in suburban Chicago. Some properties are returning to the market quickly. Crescent Heights, for example, listed the 398-unit North Water Apartments in Streeterville just two years after its $173M purchase.
The Streeter, a 49-story tower in Streeterville, also came to market in August. The State Teachers Retirement System of Ohio bought the 481-unit building in 2007 for $210M.
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Market Dynamics Shift
Listings suggest that some sellers who had waited for lower rates are now ready to transact. “Chicago is a top performer, and investors are going to get deals where they can,” said Jason Buchberg of Crescent Heights. He added that buyer and seller expectations align more closely in Midwestern markets than on the coasts.
Investment Trends
Multifamily sales volume dropped as interest rates climbed. Sales fell from $6.3B in 2022 to $3.9B in 2024. But with $2.7B in deals already closed this year, 2025 is on track to beat last year’s total.
Suburban deals have made up much of the recent activity. Highlights include the record $148M sale of Evanston’s E2 complex in 2024 and the $136M trade of Naperville’s Fifteen 98 complex in August.
Why It Matters
Chicago’s limited new supply relative to existing inventory will keep pushing rents higher. That dynamic could make multifamily assets attractive despite expensive financing. Investors are watching to see if this wave of listings sparks deal volume that reenergizes the city’s multifamily sector.
