2018 will see an expected downturn in the Chicago market of approximately 4% from the high of 2016.

Whilst most sectors have remained consistent the residential market has taken the full force of that downturn with a year-on-year reduction of apartment construction reducing 45% from 7,233 units to 4,006. It is expected however, that the market will rebound significantly in 2019 with a number of high-rise towers in the works and an extremely active developer market. Projects such as the hyperloop and Foxconn are yet to make an impact on the local market, however the planned $5B Lincoln Yards development by Sterling Bay, Related Midwest’s 52 floor Equinox Hotel and Golub/CIM’s 1,422 foot Tribune Tower development are gaining a good head of speed. Construction labor has increased which has helped slow down the pace of escalation with more skilled availability however this could be seen as a stop gap with the 2019 expected jump in construction volume. Looking forward to 2020, the Chicago market is looking to settle down to modest growths of between 1% to 3%, so will continue to be a healthy market.

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