29 Jul 2025
The Radius+ team took a closer look at the Chicago-Naperville-Elgin, IL-IN-WI CBSA to see how its rental rates have trended over the past 2 years.
Chicago has seen remarkable resilience in its rental rates with them bouncing back at the end of Q2 this year. Part of this can be attributed to it being such a hard market to develop in.
In 2023 it added 3.4% new supply relative to the total supply, while in 2024, it only added 2.5% new supply relative to the total.
Chicago showed slow but steady economic growth, while Illinois as a whole reported persistent out-migration from the state, which could weigh on the employment growth of Chicago. However, despite these headwinds, rates seem to be rebounding as Chicago is a market difficult to develop new supply in.
