Tag: class a chicago multifamily update

Chicago Class A Multifamily Market Update — YoY February 2026 Rental Data

Posted on by llcrmarketing

Luxury Living consistently tracks leasing data on larger assets in Downtown Chicago’s Class A Market built since 2016. This dataset currently includes 88 properties and over 29,000 total units—and counting. These properties set the tone for the broader downtown market.

FEBRUARY 2025 vs. FEBRUARY 2026

The most notable takeaway from Luxury Living’s 2025 Year in Review was the impact of limited new supply on pricing. In 2025, Downtown Chicago’s newer Class A properties experienced strong year-over-year rent growth, with average rents rising from $3,077 to $3,238 (+5.2%). This increase was driven by historically low new supply and higher retention of expiring leases. As availability tightened, leasing volume declined, with total rentals falling 8.2% for the year.

Heading into 2026, the key question is whether that pricing momentum will continue, particularly as the market approaches Q2, when rents accelerated sharply in 2025 due to elevated renewal rates and larger-than-average trade-outs.

Early 2026 data suggests these trends are continuing, with February 2026 rents increasing 5.1% higher than February 2025. 

Leasing volume has declined year-over-year, while pricing has moved higher, even during a period in 2025 when the market had not yet fully responded to tightening supply conditions. Last year, pricing did not meaningfully accelerate until mid-March, making this early-2026 rent increase a critical baseline for comparison.

The tables below compare year-over-year performance for February 2025 and February 2026 across the most common unit types—studios through 2 bedrooms—which account for more than 97% of total leasing activity. February is historically one of the quietest months of the leasing year. The fact that average gross rent increased 5.1% year-over-year makes this metric even more important.  

Rent Growth Is Real, But the Story Varies by Submarket

Nearly every submarket posted rent growth in February, but how they got there is where it gets interesting. Unit mix, property-level performance, and pricing strength on its own each played a role depending on the submarket.

  • Gold Coast/Old Town (+8.1%) was supported by a shift toward larger units, with studios falling from 31% to 25% of leasing activity while 2 bedrooms climbed from 16% to 19%.
  • Streeterville’s 8.1% gain is largely a property-level story, with two properties driving a disproportionate share of the increase, while much of the submarket held relatively flat.
  • River West’s 8.7% increase is the most directly tied to unit mix, with average SF up 7.8% year-over-year. The PPSF tells a more measured story.

South Loop (+7.8%) and River North (+5.5%) both posted meaningful gains through different paths, with South Loop showing distributed growth across 17 properties, which is nearly 20% of the entire dataset. River North took a different path, driven by increased activity at select higher-end assets.

West Loop/Fulton Market (+1.8%) is arguably the most complex submarket story of the month. The headline masks extraordinary movement in both directions, with several properties posting gains above 30%, largely driven by a shift toward larger unit types, while others declined by double digits as unit mix moved in the opposite direction. There is significantly more to this submarket than the 1.8% average suggests.

Loop/Lakeshore East was the clear outlier at +0.1%, where a single new entrant to the dataset leased at below-market rents, pulling the submarket average down. Strip that out and the submarket posted over 2% growth.

Digging Deeper:

Headline rent growth tells part of the story, but the drivers behind it vary significantly by submarket. Where unit mix shifted, gross rents followed. Where it didn’t, pricing strength had to stand on its own. That distinction becomes clearer in the SF and PPSF data that follows.

Unit Mix: Mostly Stable, With Two Exceptions

Year-over-year, average unit size increased slightly from 769 SF to 777 SF (+1.0%), which is essentially flat across the market. Where unit mix did shift, it shows up clearly in the data. Where it didn’t, something else is driving the rent growth.

Unit size was mostly a non-factor this month. River West (+7.8%) stands out as the primary outlier, with a meaningful increase in average SF contributing to higher gross rents, while Gold Coast/Old Town (+2.2%) also experienced a more moderate increase in unit size.

In contrast, most submarkets remained flat or declined slightly year-over-year, including River North (-0.3%), Streeterville (-0.4%), and Loop/Lakeshore East (-0.7%). With unit size largely stable across the market, the majority of rent growth is attributable to pricing strength rather than shifts in unit mix.

This relationship becomes more apparent when evaluating PPSF in the following section, where pricing trends can be isolated from changes in unit size.

PPSF Confirms What Gross Rent Suggests

With average unit size remaining largely stable across the market, PPSF provides the clearest measure of true pricing movement. February data shows that PPSF increased from $4.00 to $4.16 (+4.1%) year-over-year, confirming that rent growth observed in prior sections is primarily driven by pricing rather than unit mix.

PPSF growth was consistent across most submarkets, with several areas posting notable increases. Streeterville (+8%) and South Loop (+7%) led the market, followed by Gold Coast/Old Town and River North (both +6%). In contrast, River West (+1%) and Loop/Lakeshore East (+1%) showed more modest gains, reflecting the influence of larger unit sizes on gross rents in those submarkets.

  • Streeterville recorded the strongest PPSF growth (+8%), reinforcing its position as a pricing-driven submarket, though gains remain concentrated within a limited number of properties.
  • South Loop (+7%), Gold Coast/Old Town (+6%), and River North (+6%) also posted strong gains, confirming that pricing momentum extends well beyond a single submarket.
  • River West’s more modest PPSF growth (+1%) contrasts with its outsized rent increases, highlighting the impact of larger unit sizes on gross rent performance.
  • Loop/Lakeshore East (+1%) reflects the influence of one property leasing at far-below-market rents, keeping the submarket average in check.
  • West Loop/Fulton Market (+2%) saw some of the largest individual property swings in the entire market this month, with significant gains and losses nearly offsetting each other. 

Digging Deeper:

While PPSF growth confirms pricing momentum across most of the market, the property-level data reveals just how concentrated, and in some cases how powerful, that momentum has become. In certain submarkets, a small number of assets account for a disproportionate share of the gains. In others, pricing strength is running so deep that it’s overcoming headwinds that would typically suppress rents.

The clearest example is in Streeterville, where one property saw gross rent decline by 7.9% due to a nearly 200 SF year-over-year drop in average unit size. On the surface, that looks like a down month. But PPSF tells a different story, jumping from $3.93 to $4.52, a 15% increase. Smaller units led to lower gross rent, and the 15% PPSF increase from this one property helped push the submarket to 8% growth.

Pricing Strength Across the Board

The submarket data shows where growth happened. The unit-type breakdown shows how consistent it was.

Unit type distribution remained stable year-over-year, with only minor shifts across studios, 1 bedrooms, and 2 bedrooms. Studios/convertibles accounted for 27.2% of leasing activity in both years, while 1 bedrooms declined slightly from 51.9% to 50.9% and 2 bedrooms increased modestly from 20.9% to 21.9%. This stability confirms that rent growth is a pricing story, not a unit mix story.

Total leasing volume declined 7.9% year-over-year, a notably smaller contraction than the double-digit monthly declines observed from May through October 2025. This suggests leasing activity may be stabilizing as the market approaches the spring leasing season, with reduced inventory continuing to drive lower absorption.

Unit-Type YoY Rent Increases:

  • Studios/Convertibles: +7.6% in gross rent / +4.1% in PPSF / +3.2% in SF
  • 1 Bedrooms: +4.5% in gross rent / +4.8% in PPSF / -0.3% in SF
  • 2 Bedrooms: +3.0% in gross rent / +3.3% in PPSF / -0.2% in SF

Conclusion

February 2026 data delivers a clear signal heading into the spring leasing season: pricing power in Downtown Chicago’s newer Class A properties is not only intact, it’s holding at the market’s slowest moment of the year.

While total leasing volume declined 7.9% year-over-year, that contraction is notably shallower than the double-digit monthly drops recorded from May through October 2025, suggesting the floor may be forming ahead of the seasonal acceleration. Rent growth of 5.1%, essentially matching the full-year 2025 average, during a month when the market is at its quietest, is a more meaningful data point than the headline number alone implies.

The three-metric picture is consistent: gross rent up, average SF stable, PPSF up 4.1%. That combination leaves little room for a unit-mix explanation. The growth is real, and it’s showing up everywhere. Property-level concentration exists in select submarkets, but pricing momentum is running across unit types, price points, and nearly every corner of the market.

In 2025, rents didn’t begin to move meaningfully until mid-March. If February is already showing 5.1% growth before that acceleration kicks in, the setup for Q2 is compelling. Operators with stabilized assets are well-positioned and with minimal new supply coming online in 2026, pricing is likely to continue increasing 

Chicago Class A Multifamily Market Update — YoY October 2025 Rental Data

Posted on by llcrmarketing

Luxury Living consistently tracks leasing data on larger assets in Downtown Chicago’s Class A Market built since 2016. This dataset currently includes 85 properties and 28,500 total units—and counting. These properties set the tone for the entire market.

October 2024 vs. October 2025

There have been several major supply-related storylines in the Chicago multifamily market throughout 2025. 

  • How is the lack of supply impacting rents? 
  • How is the lack of supply affecting available inventory, resident retention, and the absorption of different unit types? 
  • How will the unprecedented shortage of new Class A deliveries reshape leasing velocity, lease-up timelines, and the competitiveness of existing buildings?

Throughout the year, we have published a range of data points illustrating why rents have climbed to record levels. 

The most consistent theme has been supply and demand. Demand has not waned, but supply is at an all-time low. 

Let’s first take a look at how the lack of supply is impacting rents.  

The tables below show YoY data for October 2024 and October 2025 for the most common unit types: Studios through 2 bedrooms, which historically represent more than 97% of units leased.

Average rent is up 10.1% ($289 per unit). This is the highest rent increase we have seen in a single month. 

Average Gross Rent — By Submarket — Studios through 2 Bedrooms

  • Average gross rent increased 10.1% YoY, rising by $289 across all downtown Class A submarkets.
  • Streeterville led all submarkets with a 17.0% YoY increase, driven by a higher share of larger unit types compared to 2024.
  • Loop/Lakeshore East posted a 15.0% increase, the second-highest YoY gain, reflecting continued rent growth in the most rent-suppressed submarket in Q4 2024.
  • River West saw a 13.7% jump, further exemplifying the impact from concession-laden West Loop/Fulton Market in Q4 2024.
  • West Loop/Fulton Market increased 12.1%, while increasing 7.9% in average SF.
  • River North increased 9.1%, a meaningful gain that aligns with the submarket’s steady 1 bedroom and 2 bedroom absorption, along with a decrease in efficiency rentals compared to 2024. 
  • Perhaps the most impressive, the South Loop achieved a 6.6% increase, while having near-equal average SF compared to 2024. 
  • Gold Coast/Old Town recorded the lowest increase at 4.7%, partially due to a 33% decrease in efficiency units leased in 2025 compared to 2024, resulting in a 5.7% increase in gross rent for that unit type.

Average SF — By Submarket — Studios through 2 Bedrooms

YoY square footage up 2.6%, rising from 753 SF to 773 SF, showing a slightly higher share of unit types larger than 1 bedrooms leasing in submarkets like West Loop/Fulton Market, Loop/Lakeshore East, Streeterville, and River North. 

A 2.6% increase in average unit size has a noticeable impact on average gross rents. Smaller unit type absorption declined significantly year-over-year: studios and convertibles were down 38%, and 1 beds were down 31%, while 2 bedrooms declined only 18%. With fewer small units and a relatively stable share of 2 bedrooms, the overall unit mix shifts toward larger-unit absorption (2 Bedroom+). This shift naturally elevates average gross rents, even before factoring in rent growth.

  • West Loop/Fulton Market had the most significant increase of 56 SF (+7.9%), which is due to a 61% decrease in studio/convertible rentals, dropping from 69 in 2024 to 27 in 2025. 
  • Loop/Lakeshore East had the second-highest jump of 47 SF (+6.0%), which is also due to a significant decline (-68%) in studio/convertible rentals in October.
  • Streeterville grew 29 SF (+3.2%), maintaining its status as the submarket with the largest average units.
  • River North increased 23 SF (+3.0%), assisted by a 4.7% increase in 2 bedroom SF compared to 2024. 
  • Gold Coast/Old Town increased 5 SF (+0.7%), showing minimal variance YoY, but plenty of movement by unit type.
  • River West decreased 7 SF (-1.0%), due to a 50% reduction in 2 bedroom absorption YoY. 

Tracking unit mix is crucial for evaluating rent fluctuations in the market, as SF directly impacts gross rents. 

Average PPSF — By Submarket — Studios through 2 Bedrooms

October 2024 represented a unique moment in the market, when several lease-ups were pushing hard to reach stabilization. Instead of offering concessions, many properties chose to reduce rents outright, which sharply depressed achieved pricing heading into Q4.

To show how dramatic this dynamic was: 

In 2024, average PPSF fell to $3.80 in October 2024, compared to $4.02 in August and $3.90 in September. Achieved PPSF in October 2024 was down 5.5% from August 2024 and down 2.6% from September 2024—not quite falling off a cliff, but certainly a steep and unusual drop.

This year’s 7.3% increase in PPSF is partially driven by limited supply, but it also reflects a “double bounce” effect as the market corrects back upward from last year’s artificially depressed pricing.

Operators across the city are seeing exceptionally strong renewal rates and trade-outs as a result, and this dynamic is expected to continue into early 2026. 

Unit-Type Analysis — Studios through 2 Bedrooms

Reviewing leased data down to the unit type will provide additional insight into YoY variances. 

Monthly absorption has been rapidly declining since May, but October recorded the steepest year-over-year reduction at 31%, marking the sharpest contraction of the 2025 leasing season. While nearly one-third of the total rental volume from 2024 has vanished, the mix of units being absorbed also shifted.

As a share of total rentals, studios/convertibles declined 3.0%, while 2 bedrooms increased 3.4%, and 1 bedroom absorption remained essentially flat. Studios and convertibles saw the most significant drop, with 98 fewer rentals, representing a 38% YoY decline compared to October 2024.

Unit-Type YoY Rent Increases:

  • Studios/Convertibles: +9.0% in gross rent / +7.8% in PPSF / +1.1% in SF
  • 1 Bedrooms: +6.8% in gross rent / +7.8% in PPSF / -0.9% in SF
  • 2 Bedrooms: +7.8% in gross rent / +7.0% in PPSF / +0.7% in SF

Despite the sharp differences in absorption, PPSF increases were relatively consistent, ranging from 7.0% to 7.8%. Gross rent increases showed more variation, from 6.8% to 9.0%, primarily driven by shifts in unit mix and the larger average square footage in the 2025 data set.

The combination of unit-type absorption patterns and a 2.6% increase in average square footage contributed to gross rent and PPSF growth that exceeded typical seasonal expectations. The underlying dynamic is clear: with fewer smaller units available, and a higher proportion of larger floor plans absorbing, both gross rent and PPSF naturally pushed higher.

Conclusion

October’s results reinforce what we’ve seen all year: demand is strong, but the market simply doesn’t have enough new supply to absorb it. With available Class A inventory down 36.5% since January, every metric in this report points back to the same underlying issue: renters are competing for fewer options.

Rents rose sharply across nearly every submarket, with average gross rent up 10.1% and PPSF up 7.3%. A shift toward leasing larger units also played a meaningful role, as average square footage increased 2.6% year-over-year.

Unit-type absorption helps explain the jump. Studio and convertible absorption dropped 38%, while 2 bedroom absorption held more steady, pushing the overall mix toward larger homes that command higher rents. PPSF growth was consistent across all unit types, landing between 7.0% and 7.8%.

This is also a “double bounce” year. October 2024 pricing was unusually depressed due to multiple lease-ups dropping rents to reach stabilization, creating an artificially low baseline. The 2025 recovery reflects both genuine rent growth and a correction back to normal pricing levels.

Looking forward, this dynamic should continue through early 2026. With so little new supply delivering, renewal strength and trade-outs will remain elevated. 

Chicago Class A Multifamily Market Update — YoY August 2025 Rental Data

Posted on by llcrmarketing

Luxury Living consistently tracks leasing data on larger assets in Downtown Chicago’s Class A Market built since 2016. This dataset currently includes 85 properties and 28,500 total units—and counting. These properties set the tone for the entire market.

AUGUST 2024 vs. AUGUST 2025

Supply constraints in Chicago’s multifamily market continue to shape availability and pricing. Since January 1, 2025, available inventory has dropped 38.4%, declining from 2,649 units in the first week of the year to 1,641 as of September 10, 2025. 

Collectively, this set of properties is 97.5% leased, though several properties remain below the 95% benchmark. Strong performance from the upper tier is sustaining the overall average.

Our July 2025 Multifamily Market Update highlighted an unprecedented average gross rent increase of 7.2%. In August, growth moderated to 5.0% year-over-year (+$147), reflecting a more sustainable pace. 

Similar to unit-mix rental patterns we have been tracking in the South Loop, a high quantity of upper-end 2 bedroom rentals have spiked rents in River North, dramatically impacting the market averages. 

To further exemplify this point, when River North is excluded from the set, gross rents only increased 2.2% YoY. 

Now let’s dig in to see how this happened.  

The tables below show YoY data for August 2024 and August 2025 for the most common unit types: Studios through 2 bedrooms, which historically represent more than 97% of units leased. 

Average SF — By Submarket — Studios through 2 Bedrooms

With YoY square footage essentially flat (within 1 SF) the data provides an accurate basis for comparison. However, when broken down by submarket, there are three major outliers: Gold Coast/Old Town, River North and River West. 

  • Average SF was flat, down only 1 SF, but significant variances in three submarkets show the impact of tracking submarket-specific data.
  • River West led with a difference of +9.3% (+64 SF), which is due to twice as many 2 bedroom rentals in August 2025 compared to 2024, and half as many studio/convertibles rentals in 2025.
  • River North followed with a +8.4% variance (+62 SF), driven by a larger share of high-floor premium 2 bedroom rentals at a single flagship River North property in 2025.
  • Conversely, Gold Coast/Old Town was down -5.3% (-40 SF), due to a 35% decrease in YoY studio/convertible rentals.
  • The remaining four submarkets were all nearly equal, within ~1%.

Tracking unit mix is crucial for evaluating rent fluctuations in the market, as SF directly impacts gross rents. 

Average Gross Rent — By Submarket — Studios through 2 Bedrooms

  • Gross rent increased by 5.0% YoY, with the average gross rent rising by $147.
  • River North led the way (+21.1%), which is directly connected to the 2 bedroom absorption in this submarket.
  • River North experienced a 6.3% increase in annual gross rent due to this anomaly.
  • River West had a large increase, rising $394, due to wide variables in unit-mix ratio.
  • Streeterville had an impressive $277 YoY increase, with nearly even average SF. 
  • Average SF in West Loop/Fulton Market declined 1.3%, driving a mild $53 YoY rent increase.
  • Rents in Gold Coast/Old Town declined $29, driven by a 40 SF reduction in average unit size.

Expanding on River North, 2-bedroom absorption was at parity YoY, but average gross rents increased $680 (+14.1%), led by a higher quantity of premium upper-floor inventory.

Q — How much did the gross rents in River North impact the overall numbers?

A — When River North is excluded from the August data, gross rents only rose 2.2% ($2,915 up to $2,979). 

The 2 bedrooms in River North provided a “disproportionate contributor” to perceived rent growth.  

Digging Deeper

South Loop and West Loop/Futon Market accounted for 52% of the total rentals in August, and the two submarkets had modest gross rent increases of +3.8% and +1.8%, respectively. These are the two most competitive submarkets in Chicago due to the significant amount of new properties added over the last 10 years. The amount of inventory also creates a barrier to increasing rents, due to higher levels of competition, unlike in River North and the Gold Coast/Old Town. 

The extreme dip in absorption in Streeterville (-51%) can be attributed to a lease-up in 2024 that was fully stabilized in 2025. 

Gold Coast/Old Town (-7) and South Loop (+7) were the only two submarkets within 5% variance from 2024. 

Reviewing leased data down to the unit type will provide additional insight into YoY variances. 

August had another sizable drop of 14.1% in absorption in 2025 compared to 2024, continuing the trend of YoY decreases in total monthly rentals starting in May. This marks the fourth consecutive month with double-digit percentage declines in monthly absorption, and this trend is likely to continue through the end of the year due to the ultra-limited supply in Chicago. 

Unit-type variations: 

  • Studio/convertible rentals dropped 18%, with 70 fewer rentals compared to August 2024.
  • 1 bedroom rentals dropped 11%, with 71 fewer rentals compared to August 2024. 
  • 2 bedroom rentals dropped 17%, with 36 fewer rentals compared to August 2024. 

As a percentage of total rentals, 1 bedroom units increased slightly to 53% of total rentals, while studios/convertibles declined 2%. Meanwhile, 2 bedrooms held steady at 17% of the market.

As we continue to monitor current availability, only 21% of the current inventory is designated as studios or convertibles, far below the monthly demand for this unit type. 

Conclusion

Chicago’s Class A multifamily market remains resilient amid extremely tight supply. Available units are down 38.4% year-to-date, with the full set of 85 properties at 97.5% leased heading into the slowest leasing months of the year. While many properties sit below the 95% benchmark, strong performers continue to lift overall averages.

Rent growth eased from July’s 7.2% surge to 5.0% in August, though River North’s premium 2 bedrooms drove a 21.1% gain. Excluding this submarket, rents rose just 2.2%, underscoring the outsized impact of a single contributor.

Submarket results were mixed: Streeterville posted solid gains, West Loop/Fulton Market saw only modest growth, and Gold Coast/Old Town declined due to smaller unit sizes. South Loop and West Loop/Fulton Market together represented over half of total rentals, reinforcing their dominance in the market. 

As we continue into the slower leasing months, we are most interested in seeing how the limited supply contributes to YoY rent growth. This is generally a time when lease-ups push to stabilization, offering heavy concessions to increase velocity. 

This will be the first Q4 where that variable will not factor into the leasing landscape, potentially leading to historic rent growth. 

Chicago Class A Multifamily Market Update — YoY July 2025 Rental Data

Posted on by llcrmarketing

Luxury Living consistently tracks leasing data on larger assets in Downtown Chicago’s Class A Market built since 2016. This dataset currently includes 85 properties and over 27,500 total units—and counting. These properties set the tone for the entire market.

JULY 2024 vs. JULY 2025

Supply constraints in Chicago’s multifamily market are driving notable fluctuations in availability and pricing. Since January 1, 2025, available units have declined by 37.8%, dropping from 2,649 in the first week of 2025 to 1,647, as of August 11, 2025.

The vast majority of properties continued to stay above 96% leased in July, with a sizable group of properties at 99% leased and very little exposure. High-retention, historically low supply and increased demand is leading to all-time occupancy percentages in Q4 2025 for the upper-end properties in Chicago. 

  • Question: How is historically low new supply impacting rents in 2025?
  • Answer: Gross rents increased 7.2% in July 2025 from July 2024. 

Now let’s dig in to see how this happened.  

The tables below show YoY data by unit type for July 2024 and July 2025 for the most common unit types: Studios through 2 bedrooms, which historically represent more than 97% of units leased.

July had an unprecedented 15.3% drop in absorption in 2025 compared to 2024, continuing the trend of YoY decreases in total monthly rentals starting in May. This marks the third month in a row with double-digit-percentage declines in monthly absorption, and will likely continue through the end of the year due to ultra-limited supply in Chicago. 

As a percentage of total rentals: 

  • Studio/convertible rentals were down 22%, with 113 fewer rentals compared to July 2024.
  • 1 bedroom rentals were down 16%, with 105 fewer rentals compared to July 2024. 
  • 2 bedroom rentals were even, with 1 more rental compared to July 2024. 

This is extremely abnormal, but does explain the massive 7.2% growth year-over-year rent growth, as the 2 bedroom total remained consistent, while there was a 218-unit reduction in studios/convertibles and 1 bedroom rentals. 

The higher share of 2 bedroom rentals caused average SF to rise 2.3%, which historically would negatively impact and gross PPSF. Not this year: 

  • YoY GROSS PPSF: +4.7%

2025 Trend: 

Older assets (built 2016–2021) that previously competed with lease-ups offering deep concessions are emerging as some of the market’s biggest winners. To stay competitive, these properties held rents flat and even offered $0 renewal increases. Now, after 2–3 years of rent suppression, they are capitalizing on significant tradeout potential, and the gains have been substantial. 

While this surge will eventually level off, it doesn’t diminish the remarkable year-over-year rent growth achieved. Chicago’s persistent supply constraints are enabling these older assets to catch up, raising the floor for gross rents. The ultimate ceiling, however, remains to be determined as affordability and income qualification needs to be considered. 

Digging Deeper

Overall averages paint a clear picture of YoY rent growth. However, there are important nuances when analyzing data at a submarket level, and even more nuanced when looking at the unit-type level.  

Average SF — By Submarket — Studios through 2 Bedrooms

  • Average SF was up 2.3%, with all submarkets increasing, showing the impact of the unit-type variances for the month.
  • Streeterville led with a 10.9% increase, due to a 14% increase in 2 bedroom rentals YoY.
  • South Loop was up 3.8%, with ultra-premium, upper-floor 2 bedroom rentals creating an imbalance.
  • West Loop/Fulton Market had the lowest average SF increase, rising 1.4%.
  • Four remaining submarkets all rose, ranging from 2.4% to 2.6%. 

Seasonality historically plays a significant role in average SF. As rents rise during the prime leasing months, average SF tends to drop due to rising rents. For example, renters who can afford a 1 bedroom in January and February, potentially end up leasing a convertible during the prime season due to affordability and income qualification. 

Due to the limited lease-ups, there was a significant gap in availability for these unit types, and 2 bedrooms had a greater market share of total rentals. 

Average Gross Rent — By Submarket — Studios through 2 Bedrooms

  • Gross rent increased by 7.2% YoY, with the average gross rent rising by $212, both of which are historic increases.
  • Streeterville led rent growth with an 14.7% increase (+$498), due to a 14% increase in 2 bedroom rentals YoY
  • River North and Gold Coast/Old Town saw increases of 8.7% and 8.6%, respectively, where rents from older assets had the highest tradeouts of any submarket in the city. 
  • Loop/Lakeshore East capitalized on its momentum from Q2, with gross rents rising 7.9%.
  • West Loop/Fulton Market had the smallest gross rent increase, which corresponds to the lower average SF increase. 

While the raw numbers are real, looking into the reasons why is critical to understanding fluctuations in the market. The proportion of 2 bedroom rentals is having a direct impact on the overall numbers. 

Digging Even Deeper

Reviewing the leased data down to the unit type will illustrate this even further.

Studios/convertibles and 2 bedrooms posted the strongest YoY gains in July 2025, rising 6.9% and 6.6%, respectively. Much of this growth stems from older assets with previously suppressed rents bringing pricing back to market. 

When this is segmented down to only studios/convertibles and 1 bedrooms, which represented nearly 80% of the total rentals, the combined gross rent increase was 4.4%. 

Newer properties that leased up over the past two years also saw rent growth, though closer to 3%, while many still required concessions to compete. 

1 bedrooms have led the market with the highest rent growth and have maintained strong momentum in the first half of 2025, with rents increasing 4.5%. By July 2024, this unit type had already approached its ceiling, which explains the more moderate YoY growth observed now. 

The current market correction will continue through the remainder of 2025 and into June 2026, with Chicago’s multifamily floor steadily rising before eventually leveling off. Identifying the true drivers of these increases is essential to avoid overcommitting to prevailing narratives.

We will revisit the data in August, but current trends suggest that ongoing supply constraints will keep driving notable fluctuations in multifamily performance. For now, the volatility favors landlords, creating opportunities for strategic pricing and retention gains.

Chicago Class A Multifamily Market Update — YoY May Rental Data

Posted on by llcrmarketing

Luxury Living consistently tracks leasing data on larger assets in Downtown Chicago’s Class A Market built since 2016. This dataset currently includes 84 properties and over 27,500 total units—and counting. These properties set the tone for the entire market.

May 2024 vs. May 2025

Supply constraints in Chicago’s multifamily market are driving notable fluctuations in availability and pricing. Total available units have declined by 29%, dropping from 2,649 in the first week of 2025 to 1,888 as of June 9.

The vast majority of properties were above 96% leased in May, which is usually a time when there is a significant amount of movement with expiring leases and relocation renters heading to Chicago. 

How is this impacting rents in 2025?

The table below shows YoY data by unit type for May 2024 and May 2025 for the most common unit types—studios through 2 bedrooms represent more than 97% of units leased. 

There were 16.3% fewer rentals in May 2025 compared to May 2024, which can be directly attributed to the significant lease-up activity occurring at this time last year, with next to nothing this year. 

As a percentage of inventory leased, all unit types are within 1% of the totals from 2024, showing consistency in demand in Chicago. 

Average SF was down slightly (-6 SF), which had an impact on the gross PPSF for 2025. 

  • GROSS RENTS: +3.8%
  • GROSS PPSF: +4.6%

At a high level, this rent growth is outstanding for downtown Chicago. 

Digging Deeper

Overall averages paint a clear picture of YoY rent growth. However, there are important nuances when analyzing data at a submarket level. 

Average SF — By Submarket — Studios through 2 Bedrooms

  • The Average SF YoY is only showing a total difference of -6, but looking deeper, all submarkets showed a decrease in average SF except one—Gold Coast/Old Town at +48
    • This is critical information as it clearly indicates rising rents in the market are forcing renters to lease smaller, more affordable inventory. 
  • Streeterville and River West saw the biggest declines, at -53 and -41 SF, respectively
    • Renters with tightening budgets are leaning toward smaller, more affordable unit types  
  • All other submarkets are within 8 SF from the previous year, with River North nearly matching its previous total
  • Gold Coast/Old Town is the only submarket with an average SF above 800
    • This is due to an extreme drop in studio/convertible rentals from 2024

Average Gross Rent — By Submarket — Studios through 2 Bedrooms

  • Gross rents increased by 3.8% YoY, with the average gross rent rising by $117, signaling strong rental demand and extremely limited supply. 
  • Gold Coast/Old Town led rent growth with an 11.2% increase (+$359), continuing its trend from April
  • South Loop saw a sizable increase of 7.1% over May 2025, which can be attributed to nearly 20% of all leasing activity coming from a single premier tower. 
  • River North achieved a YoY increase of 5.4%, which is a result of being the highest leased submarket in the city
  • On a gross rent basis, Streeterville rents dropped 4.8% YoY, which can be directly attributed to the 6.4% drop in average SF.
  • Despite a large drop in average SF of 41 SF, River West is showing stable YoY rents for May 

Limited supply is significantly impacting gross rents in all submarkets, but not all are experiencing collective growth. We’ll review again in June, which will likely show similar trends of dwindling supply with strong rent growth.

Chicago Class A Multifamily Market Update — YoY April Rental Data

Posted on by llcrmarketing

Luxury Living consistently tracks leasing data on larger assets in Downtown Chicago’s Class A Market built since 2016. This dataset currently includes 84 properties and over 27,500 total units—and counting. These properties set the tone for the entire market.

April 2024 vs. April 2025

The supply constraints in Chicago multifamily in 2025 are causing significant market fluctuations. Availability has dropped nearly 30% since the beginning of the year, while asking rents have increased nearly 5%. 

The vast majority of properties were above 96% leased in May, which is usually a time when there is a significant amount of movement with expiring leases and relocation renters heading to Chicago. 

How is this impacting rents in 2025?

The table below shows YoY data by unit type for April 2024 and April 2025 for the most common unit types—studios through 2 bedrooms represent more than 97% of units leased. 

The total units leased, the percentage of total, and the average SF are all essentially identical. These metrics being consistent helps stabilize the data and show that it is not being skewed. 

  • GROSS RENTS: +4.3%
  • GROSS PPSF: +4.3%

At a high level, this rent growth is outstanding for downtown Chicago. 

Digging Deeper

Overall averages paint a clear picture for YoY rent growth. When analyzing data at a submarket level, there are important nuances. 

Average SF — By Submarket — Studios through 2 Bedrooms

  • The Average SF YoY is identical at 753 SF, showing the consistency in rental demand compared to 2024
  • Gold Coast/Old Town saw the largest increase in average SF, up 3.5% YoY
  • River West had the largest decline, dropping 5.2% YoY to an average SF below 700—the smallest overall average unit size
  • Loop/Lakeshore East, South Loop and West Loop/Fulton Market were within 1% of its previous average SF

Average Gross Rent — By Submarket — Studios through 2 Bedrooms

  • Gross rents increased by 4.3% YoY, with the average gross rent rising by $128, signaling strong rental demand and extremely limited supply. 
  • Gold Coast/Old Town led rent growth with a 10.5% increase (+$330)
  • South Loop and West Loop/Fulton Market also saw a significant increase in gross rents of 5.6% and +5.3%, respectively
  • River North and Streeterville had minimal increases, but these two submarkets were offering the fewest concessions offered among all submarkets.

Limited supply is significantly impacting gross rents in all submarkets, but not all are experiencing collective growth. We’ll review again in May, which will likely show similar trends of dwindling supply with strong rent growth.