In Q4 2024, Chicago's rental market experienced a mix of trends, with notable shifts in both listing activity and rental prices. While listing counts for single-family homes continued to decline, multifamily and one-bedroom units saw steady increases in availability, suggesting a growing demand for smaller, more affordable living options. Rent prices across various property types showed continued growth, though three-bedroom and single-family rentals faced slight declines. Concessions became more prevalent, with a significant increase in listings offering incentives, reflecting a more competitive market. Overall, Chicago's rental market appears to be adjusting to evolving demand dynamics, with landlords increasingly offering concessions and smaller units gaining popularity.
We asked property managers in the Chicago area for insights into the market.
Key Takeaway: Most Chicago property managers expect rental prices to remain stable.
Data Summary:
Data Summary:
Deeper Diver: Chicago’s rental market appears to be entering a period of stability, with the majority of property managers expecting rents to hold steady into 2025. Only a small fraction foresee increases (22%) or decreases (1%), reinforcing the idea that pricing has reached an equilibrium. Leasing activity remains largely unchanged, with most managers reporting consistent applicant volume (71%), suggesting that supply and demand remain well-balanced.
Key Takeaway: Concessions in Chicago rentals have been on the rise, with Q4 2024 seeing 35% of listings offering incentives, well above the national average.
Data Summary:
Deeper Dive: The percentage of listings offering concessions in Chicago increased significantly in 2024, outpacing the national average. This rise indicates that landlords are more frequently using incentives to attract tenants in a competitive rental market.
Key Takeaway: Chicago's rental market has seen a longer time on market for single-family homes, but multifamily units have performed relatively in line with national averages.
Data Summary:
Deeper Dive: Chicago's single-family homes remained on the market longer than the national average, suggesting slower leasing activity. Multifamily units performed more in line with national averages, showing relatively healthy leasing speed, especially compared to single-family homes.
Key Takeaway: Rents have continued to rise across most property types, with multifamily units and one-bedroom apartments seeing consistent increases.
Data Summary:
Deeper Dive: Rents continued to rise across most property types, with one-bedroom units seeing the most notable increase. Multifamily rents showed steady growth, while three-bedroom units saw a slight decline, possibly due to shifting demand. Single-family rents stayed relatively stable, indicating a slight stagnation in that segment.
Key Takeaway: Listing counts across property types in Chicago generally showed fluctuations in the market.
Data Summary:
Deeper Dive: Listing counts for three-bedroom homes dipped slightly in Q4 2024, while two-bedrooms saw minimal growth. The most significant increase was in one-bedroom units, indicating rising demand for smaller, more affordable spaces. Multifamily listings also saw steady growth, while single-family listings experienced the largest decline, reflecting potential challenges in that market segment.
Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Rental Beast listing data covers a range of rental property types and owner types operating within the long-term rental market (generally considered to be leases with a minimum of three months). Single-family rentals (SFR) are considered to be properties with 4 or fewer units. Multifamily (MF) is more than 4 doors. Unless otherwise noted, our analysis uses the Chicago-Naperville-Elgin, IL, metropolitan statistical area (MSA) as the geographical unit.
Unique listings counts are based on rentals that were on-market at any point during the stated period. Rents are calculated based on these listings. Days on market (DOM) and concession analysis are based on these listings, with some data sources excluded due to DOM and concession info being unavailable or deemed to be unreliable. Concessions are incentives that entice renters to sign a lease (e.g., one month free, a gift card, etc.).
Our sentiment survey is based on phone conversations during Q4 2024 with rental building and community managers and property managers. Questions and answer choices:
DISCLAIMER. This report attempts to provide reliable and useful information; however, there is no guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Rental data used in this report are sourced and catalogued directly by Rental Beast, unless otherwise noted. Our analysis uses MSA as the geographical unit and is not reflective of all-U.S. measures. Information from this document may be used with proper attribution.
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