To RPBG Members, Colleagues and Friends:

From time to time, we ask RPBG Directors to submit a lead article for our newsletter.

This month we are pleased to feature this market update from RPBG Director, Bill Cassin, Apartment Investment Advisers, an investment firm that focuses exclusively on the sale of apartment buildings in the Chicagoland area.

Also, please be on the look out for invitations from the NBOA for tickets to the 13th Annual Summer Soiree. Use the same link to support the NBOA's work as serving as a sponsor.

Mike Glasser

RPBG President

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

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Member Spotlight

Photo Of The Month

Speaking on the mic: Tenzin Chozom, one of five Sullivan students who qualified for Future Business Leaders of America national competition this week.

At our Feb. meeting, the RPBG responded to an appeal by a group of students from Roger C. Sullivan High School seeking funds to send a team of 30 students downstate to participate in the state's Future Business Leaders of America competition. Impressed by the students' enthusiasm, the RPBG raised the full $5K requested.

At our May meeting, we heard from the students again, this time to learn that five Sullivan FBLOA team members have qualified for nationals in Anaheim, California, happening this week!

We wish the team continued success.

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