As real estate investment strategies evolve entering 2026, rental market fundamentals are one of the clearest signals of where returns may outperform. Two of the industry’s leading data sources — RealPage Analytics and Yardi RentCafe — point to Chicago as a standout performer among large U.S. metros.

Chicago’s Rent Growth in Context

RealPage’s November 2025 market update shows Chicago among the markets experiencing significant year-over-year rent increases, contrasting with softer performance in supply-heavy Sun Belt metros. This rent growth trend reflects strong apartment demand relative to available inventory, a key driver for sustainable income returns in multifamily assets.

Meanwhile, RentCafe’s national rental competitiveness analysis ranks the Chicago metro and its suburbs as the second-most competitive rental market in the country. Only Miami outpaces Chicago in overall rental demand intensity, measured by occupancy rates, lease renewal rates, limited days vacant, and renters competing per unit.

What’s Driving Chicago’s Performance?

1. Tight Supply + Strong Demand
Chicago has seen a slowdown in new apartment completions relative to rent growth, especially compared to high-supply Sun Belt markets. This imbalance amplifies rent increases and supports higher occupancy.

2. Renewals and Occupancy
Elevated lease renewal rates in Chicago keep turnover low, pushing occupancy higher year-over-year and reducing vacancy risk — a critical positive indicator for investors focused on cash flow stability.

3. Midwest Appeal Relative to Coastal Metros
Compared with coastal hubs where rent growth has historically been dominated by tech demand, Chicago’s performance is anchored in its diversified economic base, affordability relative to peer metros, and strong corporate footprint — factors that support resilient rent growth.

Investor Takeaways for 2026

Chicago’s rent growth and rental competitiveness metrics make it a compelling market for multifamily investment. For investors evaluating portfolio allocation, the combination of these factors points to a favorable risk-reward profile heading into 2026:

• Above-average rent growth
• High occupancy and renewal rates
• Relative supply constraints

Chicago continues to stand out not just as a resilient market but as one capable of sustained rent growth relative to many large metros and remains an attractive destination for multifamily investment.