Chicago apartment starts plunge as costs and rules reshape development

Recent permit activity in Chicago: 1361 West Chicago Avenue

A five-unit residential project has been permitted for construction at 1361 West Chicago Avenue in Noble Square, directly across from Eckhart Park. The site sits on a vacant parcel between older three- and four-story buildings. The permit, filed April 30, 2025 and issued August 28, 2025, calls for a four-story structure on grade with no basement and five dwelling units located on the upper floors. The ground floor will contain a single 807-square-foot retail space and the residents’ entrance. A rear setback reduction from 30 feet to 3 feet is part of the approved variation. Two covered parking spaces will be accessed from the alley, with five bicycle spaces inside the building. The project team includes Guider Group LLC as the architect of record and Erex, Inc. as the general contractor. Because the site is vacant, no demolition permit is required before construction begins. The presence of nearby transit options is noted, including CTA service on the 1300 block of West Chicago Avenue, the Blue Line approximately six blocks away, and multiple bus routes in the vicinity.

1000M: a condo-to-rental pivot and a landmark tower

The 1000M project sits on Michigan Avenue as a tall, high-rise rental tower with 738 units and a reported height of 805 feet. The tower has become a touchstone for how developers react to market forces: it began as a condo project, but the financial environment and changing demand led Time Equities and JK Equities to pivot to luxury rentals. The pivot followed a pause during the pandemic and the death of a key architect, with design shifts made to maximize light and a sense of openness. The building opened to renters last spring, and occupancy has been strong enough to support premium rental levels. The project is credited with bringing modern wellness and mobility features to its residents, including energy-efficient systems, extensive bike storage, and electric-vehicle charging stations, as well as facilities like a fitness center, yoga studio, and outdoor terrace. The financing journey included a shift in lender support and an unusual equity structure designed to attract tax-focused investors while accommodating a lower return profile. The development also benefited from the city’s willingness to adjust the historic district to accommodate the tower’s approved height. A 2025 CoStar Impact Award recognized 1000M for multifamily development in Chicago.

Key numbers for readers: construction started in December 2019 with foundation work; early pandemic financing was cut from a planned $300 million condo loan to about $200 million before the pivot; the project later secured additional financing to bridge gaps. The leasing and marketing plan targeted young professionals, empty nesters, and eco-conscious renters, using a mix of social media, renderings, virtual tours, and sneak-peek tours to attract tenants. Industry observers praised the project for its emphasis on light, mobility, and sustainability, noting the many professionals who contributed to bringing the development to completion.

Parking reform and zoning context in the city

In July, the city council enacted an ordinance to eliminate parking minimums for new projects within half a mile of a CTA or Metra line or within a quarter mile of a bus line. The reform is part of a broader push to remove zoning rules that block new housing, a move aimed at speeding development while addressing affordability and supply needs. The change is often discussed in the context of community meetings and ward-level tweaks to land-use rules, a process that can influence whether proposed housing moves forward. The report notes that parking facilities in many apartment buildings are generally less attractive than in earlier eras, which can affect how developers plan site features and transit-oriented strategies. The historic Marina City area is cited as part of the ongoing conversation about parking and urban density in Chicago.

Other context and ancillary notes

Overall, the market in 2025 reflects a blend of delayed construction starts, shifting capital strategies, and city-level reforms intended to unlock housing supply. The data draws from multiple sources that track projects, permits, and market signals across the region, highlighting how a few large projects and policy moves can influence the broader pattern of new housing development in a major city and its metro area.

Frequently asked questions

What is the overall trend for Chicagoland apartment construction in 2025?

Chicagoland saw a 60.4% decline in new apartment construction in 2025 compared with 2024, with about 3,756 new units projected for the year and a distribution of roughly 36% within the City of Chicago and the rest in the suburbs.

What is 1000M and why is it notable?

1000M is a tall rental tower on Michigan Avenue developed by Time Equities and JK Equities, originally slated as condos but redesigned and completed as rental units. It opened to renters in the spring following construction, and it is recognized for its design, sustainability, and mobility features, with a notable design pivot from a rectangular, stepped form to softer curves and a focus on wellness.

What is the purpose of Chicago’s parking-minimum reform?

The reform eliminates parking minimum requirements for new projects within half a mile of transit lines or within a quarter mile of bus lines, aiming to reduce barriers to new housing supply and align zoning rules with transit-oriented development.

What happened at 1361 West Chicago Avenue in Noble Square?

A five-unit residential project received a permit for a four-story building with ground-floor retail. The project includes two covered parking spaces, five bicycle spaces, and a rear setback reduction. It is located near Eckhart Park with nearby access to transit options and bike and pedestrian infrastructure.

What awards or recognition did 1000M receive?

1000M received a 2025 CoStar Impact Award for multifamily development in Chicago, reflecting its design quality and market impact.