Chicago’s fundamentals remained solid in the context of a wider economic slowdown. Rent development in the metro clocked in at 0.9 percent on a trailing three-month basis through July—60 basis points higher than the U.S. figure—with average rates at $1,895. On a year-over-year basis, Chicago ranked fourth among all major metros tracked by Yardi Matrix, at 5.2 percent. Overall occupancy remained high, at 95.6 percent as of June, 60 basis points above the U.S. rate.
Chicago’s unemployment rate was 4.3 percent in June. Although it inched up from the previous month, it remained 40 basis points lower than January’s figure. Meanwhile, the U.S. rate stood at 3.6 percent and Illinois at 4.0 percent. Job growth slowed, as the market felt the impact of economic headwinds. Over the 12-month period ending in May, the metro’s labor pool expanded 2.0 percent, with 81,900 jobs added. Most sectors recorded growth, led by leisure and hospitality (up 7.4 percent or 33,400 jobs) and education and health services (up 4.3 percent or 31,300 jobs).
Like most other major metros, Chicago’s development activity also slowed, with new inventory accounting for 0.7 percent of existing stock, or 2,691 deliveries, this year through July. The figure was down 54.0 percent year-over-year, however, the supply pipeline remained strong, with 15,298 units under construction and an additional 89,000 in the planning and permitting stages.
Read the full Yardi Matrix report.
