Is Chicago's Luxury Apartment Market Cooling Off?

Posted by Leo Clark. on Saturday, February 22nd, 2020 at 12:48pm.

Luxury Apartment MarketThe recent building boom added 26,000 apartment units to Chicago and even though the city’s apartment market is still robust, some stats show it could finally be slowing down a bit.

According to data from Integra Realty Resources, the market is relatively flat right now after years of consistent gains, both in price and demand.

Specifically, Class A occupancy is hovering around 93.2 percent, down slightly from 93.5 percent at the end of 2018.

Despite levels maintaining across the board, though, the South Loop is one neighborhood that is getting more competitive. The high-profile project dubbed NEMA Chicago just opened recently and more development is also on the way closer to the South Branch of the Chicago River.

In addition, demand in Class B buildings, or buildings that are less expensive, seems to still be on the rise, as are rent prices inside these buildings. According to the same report, new rent in a Class B downtown building was up 5.4 percent year-over-year.

Leave a Comment