Luxury Living, a multifamily developer and marketing and leasing company for luxury apartments, reports the average Class A apartment rent exceeded $3,000 for the first time in 2024, with average gross rents increasing by 2.8% compared to 2023. Luxury Living tracks leasing data on larger assets in Downtown Chicago’s Class A market built since 2016. This dataset currently includes 84 properties and over 27,500 total units—and counting.
“We closely track Chicago’s Class A market as these properties set the standard for the entire sector,” said Aaron Galvin, Founder of Luxury Living. “By analyzing leased rentals rather than available units, we gain insight into the true dynamics of Chicago's multifamily market.”
Key findings from downtown Chicago’s Class A multifamily market in 2024:
- The average price per square foot (PPSF) increased by 2.1% to $3.94 in 2024, reflecting steady demand for rental units across Chicago’s core neighborhoods.
- Total rental volume increased by 33 percent, rising from 10,600 rentals in 2023 to 14,084 in 2024—an addition of nearly 3,500 units.
- Sixty-five percent of all rentals occurred between March and August.
"Seasonality is critical for multifamily operators to understand. We saw nearly two-thirds of all rentals occur during the prime leasing season from March to August. Optimizing lease expirations to align with this demand period significantly impacts occupancy rates and rental income," said Mark Ziemke, Director of Leasing Strategy at Luxury Living. “During the slower months of January and February, rents remain low, and concessions are still widely available. In the beginning of the year, renters can secure larger units at a lower effective cost—up to 16%+ below peak rates. This leads to increased absorption of larger one- and two-bedroom units, while demand for studios and convertibles slows.”
- Studio and convertible rentals made up a larger share of total leases. These unit types saw a 3.3% increase in rents compared to 2023, with their share of total rentals rising from 27% to 30%.
- One-bedroom rents rose 4.3% while two-bedroom rents increased by 3.4%.
- Three-bedroom units experienced a 3.2% rent increase, reaching an average monthly rent $308 higher than the previous year.
- The average apartment size increased slightly, from 777 square feet in 2023 to 781 square feet in 2024, with River North experiencing the most significant size increase (+3.3%).
- Nearly all submarkets experienced rent growth, ranging from a two percent increase in West Loop/Fulton Market to a five percent increase in River North, the highest in the city.
- The Loop/Lakeshore East submarket was the only area to experience negative rent growth despite a 10% surge in total rental activity.
How does Chicago compare nationally?
“While many markets across the country are seeing rent decreases, Chicago’s multifamily market grew in 2024, with rising rents and high demand,” said Galvin. “Without substantial new deliveries in 2025 and 2026, we anticipate a tight market with continued rent growth and minimal concessions. For the last ten years, downtown Chicago has added an average of 3,500 units per year. Over the next two years, we will see less than 1,000 total units delivered. This amount will result in the lowest new supply in decades with demand at an all time high. We expect rent prices to continue to increase substantially.”
For more in-depth insights, download the full report at multifamilyleasing.com/
