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Chicago Multifamily Investment Hits $1.9B in Q1 as Deal Volume More Than Doubles

Chicago multifamily investment sales reached $1.9B in Q1 2026, marking a 116.6% year-over-year increase.

By Colin Percy · May 26, 2026

The Chicago commercial real estate market saw a surge in activity during the first quarter of 2026, with multifamily investment volume reaching $1.9B. This performance represents a 116.6% increase compared to Q1 2025, positioning Chicago as the second-most active multifamily market in the U.S. behind the New York metro area. The quarter saw 58 total multifamily deals, an increase of 31.8% year-over-year, as investors favored larger complexes at higher valuations.

Key transactions included the $167M sale of a 1,115-unit high-rise at 5441 N. East River Road in O’Hare and the $126.1M sale of a 42-story downtown tower. Despite a tight vacancy rate of 5.1% and a limited development pipeline, with only 1.6% of inventory currently under construction, institutional interest remains high due to strong fundamentals. Stakeholders are also monitoring the transition of the Cook County Assessor’s office, as incoming assessor Pat Hynes intends to introduce more predictable assessment processes to the local tax environment.

Companies mentioned

broker

Avison Young

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