Chicago, IL Multifamily Market Report Q2 2026
Chicago’s Vacancy Falls Below 3% as Apartment Deliveries Head for a 2012 Low
Demand
Chicago’s labor market has essentially stalled, up just 0.07% YoY through April versus 2.16% in 2022, yet renters keep showing up anyway. Vacancy fell to 3.0% in Q2, down 52 bps from Q1, as net absorption of 5,025 units ran nearly five times the quarter’s 1,064 completions. Rent reached $2,198, up 4.03% YoY, a deceleration from Q1’s 6.57% but still strong. South Cook County and Joliet/Will County lead the tightening at 1.9% and 2.1% vacancy, suggesting constrained supply is doing more work than job growth right now.
Supply
Chicago’s pipeline has become one of the thinnest in the country. Units under construction sit at just 11,895, only 1.54% of inventory, while TTM completions of 3,906 units are down 37.1% YoY, in line with citywide reports that 2026 deliveries are on pace for their lowest total since 2012. Streeterville/River North and The Loop still carry the heaviest pipelines, at 4.7% and 4.3% of inventory, so any near-term softness should stay concentrated.
Investment Market
Capital has come back to Chicago in a big way. TTM volume climbed to $7.06B, up 36.3% YoY and the highest TTM total in this dataset, surpassing the prior 2022 cycle peak of $6.78B. Q2 alone brought in $1.46B, up 23.5% YoY. Price per unit reached $208,794, a new cycle high and up 2.9% YoY, while cap rates barely moved, holding at 6.53% versus 6.54% a year ago.
With deliveries falling and rents still growing faster than the national average, buyers appear to be underwriting a supply story that only gets tighter from here.
Volume
- TTM $7.06B, up 36.3% YoY
- Q2 $1.46B, up 23.5% YoY
- Highest TTM volume in this dataset, above the 2022 peak
Pricing
- PPU $208.8k, up 2.9% YoY
- Cap rate essentially flat at 6.53%
- Rent growth cooled to 4.0% YoY in Q2
