Asset Class Focus
Chicago Multifamily
Market Fundamentals
Stable, demand-driven performance supported by limited new supply, accelerating rent growth, and constrained development pipelines.
Asset Class Focus
Anchored by the Economic Scale of Chicago
The nation's third-largest metro area provides long-term economic resilience across market cycles, supporting consistent housing demand across established residential neighborhoods.
Market Fundamentals
Tight Supply Conditions Support Sustained Performance
Following active construction years, Chicago has entered a phase of severe supply-side moderation. The metro is on pace for its lowest volume of new deliveries in over a decade.
With only 9,800 units currently under construction (just 1.7% of total inventory vs. a 2.5-3.0% national average), the market remains deeply undersupplied. This constrained environment is driven by high barriers to entry and limited land availability.
Chicago Market At-A-Glance
Vacancy Rate
4.7%
Annual Rent Growth
3.5%
Annual Absorption
~8,200 units
New Deliveries
~4,900 units
Units Under Construction
~9,800 (1.7%)
Market Inventory
~570,000 units
5-Year Avg. Rent Growth
3.8%
Chicago Market At-A-Glance
Vacancy Rate
4.7%
Annual Rent Growth
3.5%
Annual Absorption
~8,200 units
New Deliveries
~4,900 units
Units Under Construction
~9,800 (1.7%)
Market Inventory
~570,000 units
5-Year Avg. Rent Growth
3.8%
Demand-Driven Stability
Sustained absorption continues to outpace new deliveries (8,200 units absorbed vs. 4,900 delivered in 2025).
Structurally Undersupplied
Only 9,800 units (1.7% of inventory) are under construction, sitting well below the 2.5–3.0% national average.
High Barriers to Entry
Limited land availability and measured underwriting permanently constrain new development.
Strong Fundamentals
Steady renter demand ensures occupancy stability and consistent rent growth in workforce neighborhoods.
Chicago Market Overall and Stabilized Vacancy
Source: Colliers Offering Memorandum
Chicago Market Rent per Unit Trend
Source: Colliers Offering Memorandum
Chicago Market Deliveries and Demolitions
Source: Colliers Offering Memorandum
Supply Moderation
Measured Development Pipeline & Accelerating Rent Growth
The Southwest and Southeast Chicago neighborhoods exhibit demographic characteristics consistent with established, household-driven rental markets. Average household sizes across these submarkets exceed citywide benchmarks.
Decade-Low Deliveries
On pace for just 5,100 deliveries in 2025—the lowest since 2012. Projections indicate only 6,400 additional completions in 2026.
Sustained Landlord's Market
Demand consistently exceeds supply. Vacancy sits at 4.7% (vs. 8.3% nationally) and is expected to compress toward 4.4%.
Outpacing the Nation
Chicago posted 3.5% annual rent growth, vastly outperforming the 0.3% U.S. average. Every submarket recorded gains above the national average.
Economic Drivers
Diverse Economy & Global Connectivity Underpin Market Strength
Balanced Industry Mix
No single industry accounts for >15% of employment, ensuring resilience against sector-specific downturns and supporting consistent housing demand across income levels.
Global Infrastructure
Anchored by O'Hare International (3rd-largest U.S. trading port) and serving as North America's central freight interchange.
Corporate & Academic Hub
Home to 24 Fortune 500 headquarters, 400+ major corporate tenants, and a world-class university talent pipeline feeding growth sectors.
Key Economic Highlights
9.6 million population within MSA
24 Fortune 500 headquarters
2 international airports
6 major railroads + 10 interstates
29,000 employees in Medical District
$700 B+ regional GDP
"Backed by a $700 billion regional economy, world-class infrastructure, and a balanced industry base, Chicago stands as one of the nation's most durable multifamily markets."
The Process
How to Invest with Z & Y Capital
We value long-term partnerships. Our onboarding process is designed to ensure alignment before capital is ever deployed.
Discovery
We schedule a call to understand your financial goals and determine if our strategy aligns with your portfolio needs.
Review
Qualified investors receive access to our current offerings, including detailed underwriting and market analysis.
Commit
Review legal documents (PPM), sign subscription agreements, and fund your investment.
Prosper
We execute the business plan. You receive quarterly updates and cash flow distributions.
Partner with Z & Y Capital
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DISCLAIMER: This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer will be made only by means of a confidential offering memorandum and related subscription documents.
Past performance is not indicative of future results. Real estate investments involve a high degree of risk, including the potential loss of principal. Z & Y Capital LLC does not provide tax, legal, or accounting advice. Prospective investors should consult their own professional advisors before making any investment decisions.
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