Bisnow: The midwest's days as 'The Poor Stepchild' of multifamily are over
29 June 2025
The only thing hotter than the record temperatures across the Midwest the last couple of weeks is the region’s multifamily sector.
Rent growth in Chicago and other major central U.S. cities is sizzling, topping reports analyzing the metric in markets across the country.
And big multifamily and investment executives are making big plays, betting conditions are ripe for the asset class's regional resurgence, despite macroeconomic headwinds hitting the sector at large.
“We've been the poor stepchild for a long time, and it seems now there's some interest,” said Tim Anderson, CEO of Chicago-based developer Focus.
“Places where people flooded to [during the pandemic] have been overbuilt, and I think the demographics and the job growth in those areas will self-correct over time. But right now, Chicago looks pretty attractive.”
Chicago saw 4.2% year-over-year rent growth in May, the third highest in the nation, behind Brookline, Massachusetts, and Hollywood, Florida, according to CoStar data. Other Midwest cities also far surpassed average national rent growth of 1% last month, with Indianapolis posting 2.6% growth and Madison, Wisconsin, hitting the 2.3% mark.
A growing number of capital sources are taking note and raising sizable funds to chase housing deals across the Midwest. Morgan Properties made a $500M Midwest multifamily bet in April, and Chicago-based Clear Investment Group is targeting $300M for a fund it launched in March aimed at workforce housing.