Presentation by Brandon Svec, Director of Market Analytics with CoStar Group.

1. #CAROUTLOOK
#CAROUTLOOK
2022
B R A N D O N
S V E C
Director of Market Analytics |
CoStar Group

2. Chicago Multifamily Update
A Recap of 2021 and Look Forward to 2022
January 2021
Brandon Svec, National Director

3. Chicago vs. US: Historical Job Growth
Source: CoStar, Oxford Economics End of 21Q4
(15%)
(10%)
(5%)
0%
5%
10%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Job
Growth
Y/Y
Chicago United States

4. Chicago Employment Change Since Q1 2020
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3
Percent
Change
Since
Q1
2020
Office Using Employment Total Employment
Source: BLS
As of Sept-21

5. Job Growth:Baseline vs. Moderate Upside
Source: CoStar, Oxford Economics End of 21Q4
(14%)
(9%)
(4%)
1%
6%
11%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Job
Growth
Y/Y
Chicago: Baseline Chicago: Moderate Upside

6. Unemployment Rate: Chicago vs. US
Source: Oxford Economics End of 21Q4
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Unemployment
Rate
United States Chicago

7. Chicago: Job Growth By Sector
Source: Oxford Economics End of 21Q4
3.9%
1.9%
-0.4%
3.0%
0.9% 1.6% 1.2%
24.0%
3.7%
0.9%
3.3%
(5%)
0%
5%
10%
15%
20%
25%
30%
Job
Growth
Average Annual Employment Growth (5 Years) Employment Growth (Y/Y)

8. Population Growth vs. US
Source: Oxford Economics End of 21Q4
(0.6%)
(0.4%)
(0.2%)
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Annual
Population
Growth
United States Chicago

9. Net Absorption: Quarterly
Source: CoStar End of 21Q4
-2.0K
0.0K
2.0K
4.0K
6.0K
8.0K
10.0K
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Net
Absorption
in
Units
Quarterly Net Absorption: Chicago

10. Net Absorption Trailing Four Quarters
Source: CoStar End of 21Q4
-5.0K
0.0K
5.0K
10.0K
15.0K
20.0K
25.0K
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Net
Absorption
in
Units
Trailing Year Net Absorption: Chicago

11. Quarterly Supply Change
Source: CoStar End of 21Q4
0.5K
0.0K
0.5K
1.0K
1.5K
2.0K
2.5K
3.0K
3.5K
4.0K
4.5K
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Net
Deliveries
in
Units
Quarterly Net Deliveries: Chicago

12. Supply, Demand and Vacancy
Source: CoStar End of 21Q4
-5.0K
0.0K
5.0K
10.0K
15.0K
20.0K
25.0K
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Net
Absorption
and
Net
Deliveries
in
Units
Vacancy
Rate
Net Absorption (Y/Y) Net Deliveries (Y/Y) Vacancy Vacancy Historical Avg

13. Apartment. Vacancy By Star Rating
Source: CoStar End of 21Q4
0%
2%
4%
6%
8%
10%
12%
14%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Vacancy
Rate
1 & 2 Star 3 Star 4 & 5 Star

14. Apartment Units Under Construction Over Time
Source: CoStar As of January 2022
0K
2K
4K
6K
8K
10K
12K
14K
16K
18K
20K
10 11 12 13 14 15 16 17 18 19 20 21
Units
Under
Construction

15. Chicago Submarkets With The Most Construction
Source: CoStar As of January 2022
0.0K 0.5K 1.0K 1.5K 2.0K 2.5K 3.0K 3.5K
Southwest Cook County
Southwest Lake County
Far Northwest Suburban Cook
Near North Suburban Cook
Porter County
Southwest Chicago
North Will County
Naperville/Lisle
North Lakefront
Downtown Chicago
Units Under Construction

16. Most Heavily Developed Submarkets Since 2017
Source: CoStar End of 21Q4
0.0K 5.0K 10.0K 15.0K 20.0K
Naperville/Lisle
Fox River Valley
Kendall County
West Cook
Elgin/Dundee
North Will County
Kenosha
Des Plains/Arlington Heights Corridor
Northeast DuPage County
North Lakefront
Downtown Chicago
Net Deliveries Since 2017

17. Baseline: Supply, Demand and Vacancy
Source: CoStar End of 21Q4
-5.0K
0.0K
5.0K
10.0K
15.0K
20.0K
25.0K
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Net
Absorption
and
Net
Deliveries
in
Units
Vacancy
Rate
Net Absorption (Y/Y) Net Deliveries (Y/Y) Vacancy Vacancy Historical Average

18. Rent Growth: Chicago vs. U.S. Average
Source: CoStar End of 21Q4
4.7%
5.4%
2.1%
(2.2%)
1.7% 1.3%
2.0%
2.5% 2.2%
3.5%
2.1% 1.8% 2.0% 1.7%
(1.9%)
8.4%
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
12%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Rent
Growth
Y/Y
Chicago US

19. Rent Growth, by Market
12.9%
12.9%
13.4%
14.9%
15.0%
15.7%
17.0%
17.3%
17.3%
17.6%
17.6%
18.7%
20.5%
20.5%
21.1%
21.5%
21.8%
23.0%
24.5%
24.6%
0% 10% 20% 30%
San Antonio
Denver
San Diego
Inland Empire
Dallas-Fort Worth
Tucson
Nashville
Miami
Orange County
Charlotte
Salt Lake City
Atlanta
Austin
Raleigh
Jacksonville
Fort Lauderdale
Phoenix
Las Vegas
Tampa
Orlando
Rent Growth, YOY
Note: Includes markets with 75K+ units inventory.
3.6%
4.9%
5.3%
5.7%
6.1%
6.2%
6.2%
6.3%
6.6%
6.8%
7.2%
7.7%
7.9%
8.0%
8.0%
8.1%
8.3%
8.5%
8.7%
9.2%
0% 20%
Minneapolis
East Bay
Pittsburgh
New York
Milwaukee
Cleveland
Northern New Jersey
Omaha
Los Angeles
Louisville
Kansas City
Detroit
Saint Louis
San Jose
Cincinnati
Columbus
Chicago
San Francisco
Oklahoma City
Portland
Rent Growth, YOY
Note: Includes markets with 75K+ units inventory.

20. Rent Growth By Star Rating
Source: CoStar End of 21Q4
(8%)
(3%)
2%
7%
12%
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Rent
Growth
Y/Y
1 & 2 Star 3 Star 4 & 5 Star

21. Rent Growth, BaselineForecast
Source: CoStar End of 21Q4
(4%)
(2%)
0%
2%
4%
6%
8%
10%
05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Rent
Growth
Y/Y
Chicago Annual Rent Growth

22. Submarkets With The Highest Rent Growth
Source: CoStar End of 21Q4
11.4%
11.5%
11.9%
12.0%
14.0%
0.0% 5.0% 10.0% 15.0%
Southwest Lake County
Far Northwest Suburban Cook
South Lake County IN
Southeast DuPage County
Downtown Chicago
Y/Y Rent Growth

23. Submarkets With The Lowest Rent Growth
Source: CoStar End of 21Q4
3.8%
2.8%
2.8%
2.0%
1.3%
0.0% 1.0% 2.0% 3.0% 4.0%
South Chicago
Near North Suburban Cook
Northwest Chicago
Southwest Chicago
Far North Chicago
Rent Growth Y/Y

24. Total Rent Growth Since Previous Peak (2007Q4)
Source: CoStar End of 21Q4
30%
31%
31%
31%
31%
32%
32%
32%
33%
36%
36%
37%
38%
40%
40%
40%
42%
43%
44%
45%
50%
22%
0% 10% 20% 30% 40% 50% 60%
Downtown Chicago
South Lakefront
Northeast Lake County
Aurora
North Lake County IN
East Suburban McHenry
Kendall County
Kenosha
Western McHenry County
Elgin/Dundee
Far Northwest Suburban Cook
Southwest Lake County
North DuPage County
South Chicago
Glen Ellyn to West Chicago Corridor
University Park
Naperville/Lisle
Southeast DuPage County
North Will County
Fox River Valley
South Lake County IN
METRO

25. Chicago Sales Volume By Property Type
Source: CoStar
$0.0B
$1.0B
$2.0B
$3.0B
$4.0B
$5.0B
$6.0B
$7.0B
$8.0B
$9.0B
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21*
Sales
Volume
Office Retail Industrial Multifamily

26. Quarterly Sales Volume
Source: CoStar End of 21Q4
$0.0B
$0.2B
$0.4B
$0.6B
$0.8B
$1.0B
$1.2B
$1.4B
$1.6B
$1.8B
$2.0B
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Sales
Volume
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter