Last month the value of all residential construction starts in the Chicago-Naperville-Joliet metro totaled nearly $392 million, with multifamily starts accounting for the majority of this volume.
According to data from Dodge Data & Analytics, two high-rise rental projects broke ground last month that accounted for $237 million of the $392 million total.
Based on the city of Chicago’s pipeline, multifamily projects, and more specifically high rises, should continue to account for the majority of residential construction, this despite the estimated 6,700 units slated to come online this year.
The majority of single-family starts should be in the form of downtown condo towers, rather than detached single-family homes.
In Streeterville, Related Midwest is nearing commencement of a 67-story high-rise project that will feature a mix of condos and rentals, 65 units and 20 units, respectively. The project is slated for completion sometime next year.
CMK Companies represents another developer with a condo project lined up, this one in the South Loop neighborhood, according to CoStar. A 28-story condo tower is also being proposed for the Gold Coast.
According to CoStar, four Chicago neighborhoods have multiple proposed projects, mainly multifamily, lined up for this year. These neighborhoods and the developers with proposed projects include:
- South Loop: Draper and Kramer Development Services, Crescent Heights, Keith Giles
- The Loop: Magellan Development Group (two projects), Next Realty
- River North: Onni Group, Centrum Partners, John Buck Company, JDL Development
- Fulton Market: JDL Development, F&F Realty, Greenstone Capital
In Logan Square, Henry Street Partners is set to begin a two-tower, 217-unit project after recently receiving $46 million in construction financing.
In January 2015, residential construction starts in the Chicago-Naperville-Joliet metro totaled only $139.9 million.
During the first month of this year total construction spending in the metro, including residential and non-residential starts, totaled $578.6 million. Of that total, residential construction accounted for nearly 68 percent of all starts volume.
