At Strato Living, we track the heartbeat of Chicago’s high-end rental market to guide our clients, partners, and investors.
This update focuses on Class A multifamily properties in the downtown core, including the Central Business District, River North, West Loop, Streeterville, and South Loop.
Our reporting period: January 2025 through October 2025.
Data sources: publicly reported metrics, leasing comps, and internal Strato Living observations.
Market Context
Limited New Supply
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2025 has seen the fewest new downtown apartment deliveries in 20+ years, with fewer than 300 units expected to be added city-wide.
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This supply gap supports stronger pricing power for existing Class A towers.
Rent Performance & Vacancy
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Average effective rent in Class A downtown assets rose from ≈ $3.45 / SF in January to ≈ $3.63 / SF by October, a ~5.2 % YoY increase.
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Occupancy in stabilized properties climbed slightly to ~95.8 %, reflecting healthy absorption despite economic headwinds.
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Concessions (e.g., free rent) compressed further, down from ~0.75 % of rent at the start of the year to ~0.5 % by fall.
Submarket Insights
| Submarket | Rent Growth vs. Jan 2025 | Occupancy Trend | Notes |
|---|---|---|---|
| River North | +5–6 % | ↑ to 96 %+ | Premium location, strong demand from relocations |
| Central / Loop | +4–5 % | Stable ≈ 95 % | Core CBD remains resilient |
| West Loop / Fulton Market | +6–7 % | ↑ mid-95 % range | Amenity-rich new builds push pricing higher |
| Streeterville | +4–5 % | ↑ 95 %+ | Waterfront access continues to appeal |
| South Loop | +3–4 % | ~94 % | Growing with new tower deliveries but slightly lagging core |
What’s Driving the Market
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Supply Bottlenecks
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Minimal new deliveries support rent stability and limit concessions.
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Operating Cost Pressures
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Rising taxes, insurance, and maintenance push owners to capture more rent to protect NOI.
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Shifts in Renter Preferences
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Premium amenity packages, wellness spaces, and modern design continue to command rent premiums.
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Macro Considerations
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Interest rates and broader economic signals remain key wildcards; a softer job market could temper rent growth.
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Strato Living Perspective
At Strato Living, we’re leveraging these insights to help renters and partners make smarter moves:
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Renters: guiding clients to competitive options in high-demand submarkets.
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Owners / Investors: advising on pricing strategies, marketing mix, and lease-up pacing.
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Developers: monitoring unit-type performance to shape future design and amenity decisions.
Our team’s close ties to the downtown leasing community help us stay ahead of shifts as they happen.
Outlook for Late 2025 & Early 2026
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Moderate but positive rent growth is expected to continue into early 2026.
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Concessions likely to remain limited for the best-located Class A buildings.
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Submarket divergence may widen—premium towers in River North and West Loop should outperform, while more peripheral Class A stock may face competitive pressure.
Final Takeaway
From January through October 2025, the downtown Chicago Class A multifamily market has delivered steady rent gains, high occupancy, and reduced concessions—driven by scarce new supply and solid demand.
Strato Living will continue to publish timely insights to help clients and partners navigate Chicago’s dynamic rental market.
