Employment Struggles, Rents Lead US
The metro’s multifamily fundamentals were mixed in the third quarter, according to the latest Chicago multifamily market report. Advertised asking rents were up 0.4%, to $1,938, on a trailing three-month basis, 10 basis points above the U.S., as noted in the national multifamily market report. Rates in the metro were up 2.0% year-over-year, which was more than double the 0.8% national figure. Occupancy remained healthy, dipping only 20 basis points year-over-year, to 95.6% in June, above the U.S.’ 94.6%.
Unemployment reached its highest rate since August 2021, at 6.4% in July, according to preliminary data from the Bureau of Labor Statistics. It also stood 230 basis points higher than the U.S. figure. Over the 12 months ending in May, Chicago gained 12,700 net jobs, or a 0.2% expansion. Growth significantly lagged the nation’s 1.3%. Education and health services led gains with 22,200 jobs, while professional and business services recorded a loss of 30,400 positions.
Chicago’s multifamily supply pipeline saw some disruptions, as only 2,957 units were added in the first seven months of the year. This accounted for 0.7% of existing stock, significantly below the national 1.4% rate. Starts were also down, with 15,257 units under construction. Meanwhile, investment volume totaled $651 million year-to-date through July, less than half of last year’s $1.5 billion.
Read the full Yardi Matrix Chicago Multifamily Market Report: September 2024
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