The Chicago multifamily market remains one of the strongest in the country midway through 2025, with robust rent growth, competitive cap rates, and high investor interest. Despite broader economic uncertainty, Chicago continues to outperform many national peers due to its steady rental demand and limited new supply.
Tight Supply and Rising Rents in the Chicago Multifamily Market
Vacancy Rate: 4.7%, among the lowest in large U.S. metros
12-Month Rent Growth: 3.8%
Effective Rent Forecast for 2025: 5.3%
Average Asking Rent: $1,888/month or $1.60/SF
Absorption (12 Months): 10,153 units vs. 5,433 delivered
Units Under Construction: 8,286 (1.4% of inventory)
Chicago’s development slowdown, combined with population stability and international migration, continues to push asking rents higher across submarkets.
See our previous full-year analysis for comparison.
Aurora Submarket Insight: Suburban Value and Investment Stability
In suburban Aurora, IL, investment metrics show:
Effective Rent: $1.24/SF
Vacancy: 3.5%
Under Construction: 246 units (delivery expected Jan 2026)
Rent Growth (YoY): 3.4%
Recent Deals: Prices range from $77,000 to $190,000/unit depending on size and finish
Aurora’s affordability and low vacancy rates make it an attractive target for value-add multifamily investment.
Cap Rates, Price Per Unit, and Market Velocity
Sales Volume (Past 12 Months): $4.4 billion
Average Cap Rate: 6.2%
Price Per Unit: Typically ranges from $150,000–$275,000 in metro Chicago
Price Per SF: Averages $185–$325 depending on asset location and class
Although the transaction pace has eased from 2021 highs, Chicago’s multifamily investment market remains active, particularly in high-demand suburbs and core neighborhoods.
Multifamily Market Outlook: 2025–2026
With a historic slowdown in construction and continued population gains, rent growth is expected to accelerate. Submarkets with favorable fundamentals, like Aurora, Naperville, and Elgin, are poised to deliver higher returns for long-term investors.
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