Don’t expect much new multifamily construction in the Chicago market this year. A new research report says that Chicago’s apartment construction pipeline is among the lowest across the United States.
That’s one of the bigger takeaways from Marcus & Millichap‘s Chicago Multifamily Investment Forecast Report for 2026, a report that the company released earlier this week.
According to the report, 2026 apartment deliveries are expected to fall below 4,000 units in the Chicago market. That’s the lowest this figure has been since 2012. Marcus & Millichap says that the lack of new supply should support continued low vacancy in the Chicago-area multifamily sector.
Marcus & Millichap predicts that multifamily vacancy in the Chicago area is projected to end 2025 at 3.8%, roughly 200 basis points below the metro’s long-term average, as limited new supply and demographic shifts create tighter housing conditions.
“Suburban submarkets in the Southwest Suburbs, including areas of Southwest Cook and Northwest Will counties, are poised to benefit from minimal new supply in 2026,” said Steven Weinstock, senior managing director with Marcus & Millichap and Chicago Oak Brook market leader, in a statement. “This dynamic supports rent stability and presents strong opportunities for investors.”
The report says that multifamily rents will increase this year, but not by much. Marcus & Millichap predicts that apartment rents in the Chicago market will grow modestly by 0.5% in 2026, with the average effective rent reaching $2,300 a month by the end of the year.
Investor activity remains strong, with Class-A rent growth in 2025 being the strongest since 2022, and private capital continuing to target high-amenity areas like River North up to Rogers Park.
“Downtown Chicago continues to attract investor attention thanks to strong lifestyle amenities and transit connectivity,” said Joe Powers, managing director with Marcus & Millichap and Chicago Downtown market leader. “Even as demographic headwinds pose some challenges to absorption, the neighborhoods remain strong due to a lack of new development and the ability to push rents on existing units.”
