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.