CHICAGO MULTIFAMILY MARKET UPDATE - 2Q 2025
By: Bill Cassin, Apartment Investment Advisers (AIA)
Rents Rising | Rates Peaking | Buyers Returning
"We're so back," as the kids say.
Liquidity has returned to the Chicago market for multifamily investment properties — evidenced by both velocity and values.
Typically, in a soft market, sellers keep price expectations steady while buyer bids evaporate — causing transaction volume to collapse. But 2025 is different: buyers are bridging the gap to make deals happen, and as a result, transaction velocity is climbing.
What’s Driving the Recent Buy-Side Enthusiasm in Chicago?
Rents Rising
After lagging the Sun Belt during COVID, Chicago rents have posted +5–7% annual gains since 2022 and limited new supply points to continued growth through this cycle. Many long-time investors haven’t seen a rental market like this in Chicago, ever.
Interest Rates
With the Fed signaling an end to rate hikes, buyers believe we’ve likely seen the top in rates and the bottom in values. If rates tick down, even modestly, and the rent growth continues I’d expect a buying frenzy and values blowing thru all time highs.
Local Policy Restricting Supply
Misguided intervention in the housing market w/ ordinances and proposed legislation (NW Preservation Ordinance, HB3564, rent control etc) are curbing future supply and supporting the value of existing assets.
Bottom Line
Chicago’s multifamily market is gaining momentum:
- Rents are rising
- Rates have likely peaked
- Policy is restrictive
Supporting Data
Chart: Median Rent Growth vs 10-Year Treasury Yield (2019–2024)
Neighborhoods: Rogers Park, Uptown, Edgewater, Lakeview, Lincoln Park
NEXT UP!
JULY HAPPY HOUR!
Tuesday, July 22
5:30-7:30 pm
Place: TBA
MEMBER SPOTLIGHT
ED WITTENSTEIN
WORSEK AND VIHON
Property Tax Law
I am a partner with Worsek and Vihon and have been an attorney with the firm since 1987. Our firm concentrates its practice on real estate taxation and represents property owners throughout Illinois with a focus on minimizing tax liabilities of our commercial, industrial and residential clients. This is achieved through negotiations with local assessors and by filing assessed valuation complaints at Boards of Review, Cook County Assessor's Office, Property Tax Appeal Board and circuit court. Regardless of the property type or size, we strive to assure our clients pay their fair share of taxes and no more.
RPBG'S 30TH ANNIVERSARY VIDEO
Watch our video showcasing RPBG's 30 year history. Learn how our organization was formed, of the challenges we faced and the opportunities we've been given.
CHARITABLE ENDEAVORS
Every year, the Rogers Park Builders Group strives to give back to the Rogers Park community in generous, creative and impactful ways. Below are a few projects from recent years that we are most proud.
BASKETBALL TOURNAMENT
For the 2nd year in a row, RPBG and some of its members covered the full cost for Sullivan High School's Annual Middle School Basketball Tournament. This free, double elimination tournament, provided a competitive and fun outlet for 120 Chicago area students. The youth were introduced to this terrific local high school and participated in classroom discussion focusing on Dr. Martin Luther King's legacy as well.
LIFE SKILLS CLASSROOM
One of RPBG's finest moments occurred in 2016, as the RPBG helped transform a regular classroom at Sullivan High School into a full fledged life skills space. Serving the students of the School's special needs program, which helps students with autism and Down Syndrome, the classroom includes a full kitchen, laundry and day bed. The students eagerly use this room to learn basic life skills and independent living.
FUNDRAISER FOR IMMIGRANTS
During Covid, our community partner, Northside Community Resources told us that many immigrant families living in Rogers Park were struggling, as they did not qualify for federal relief programs. RPBG and its members engaged in a special fundraising drive generating contributions totaling $18,000 to support our newest community members.
GLENWOOD ART FESTIVAL
Starting in 2002, RPBG has consistently sponsored the Glenwood Avenue Arts Fest, an important local festival, founded by our Board member Al Goldberg, which showcases our eclectic and creative community. Many of our members also support this summer street festival through booths and generous sponsorships.
CHICAGO HIGH RIDGE FOOTBALL TEAM
A tragic fire resulted in a local youth football program losing its equipment. RPBG's $2500 gift helped purchase new replacement items. Other local businesses and community members joined the RPBG in supporting this drive, which allows for the Hi Ridge Chargers to continue to compete, offering youngsters from around the neighborhood the chance to gain play tackle football, under the guidance of a set of skilled coaches.
RPBG believes that these sorts of time tested activities are what is needed to keep the neighborhood youngsters engaged and involved in challenging and fun activity.
RESTORED VINTAGE MUSICAL INSTRUMENTS FOR LOCAL H.S.
In 2019, Andrew, the Sullivan High School Music Director, told us that someone had uncovered 60 year old musical instruments in the school's basement. "If we can restore these," Andrew promised, "I can create a marching band and revive a rock 'n roll program. RPBG came through with funding, resulting in restoration of dozens of instruments. That Fall, Sullivan had a marching band and a successful rock 'n roll band program. RPBG also underwrote private music lessons in partnership with Loyola University Chicago and renown local music store, Flatts & Sharpe.
SULLIVAN GRADUATION PICNIC
Due to Covid, the Sullivan HS graduates in Spring, 2021 had no prom, and little fanfare to commemorate their important milestone. At Principal Thomas' request, the RPBG covered the cost of a pre-graduation picnic, attended by graduates and staff. Many students happily celebrated their accomplishment over tacos, pizza, raffle prizes and festivity with their friends and SHS's dedicated faculty.