Chicago’s multifamily market is evolving fast. While demand remains high, competition is fiercer than ever. With 7,200 new units entering the market this year and aging properties struggling to keep pace, property managers who fail to modernize risk higher vacancies and lost revenue.

The good news? Smart, strategic upgrades can deliver a strong ROI, boost retention, and keep your building competitive. Here’s what you need to know to stay ahead in Chicago’s multifamily market.

Key Considerations to Maximize Your Multifamily Construction Project

With strong vacancy rates holding at 5.3% and a steady pipeline of new supply, Chicago’s multifamily market remains stable, driven by sustained renter demand and positive absorption rates. The 7,200 new units set to hit the market this year will add to the city’s housing stock, yet well-kept, updated buildings continue to attract residents who value both modern conveniences and establishing communities. Even in a market with solid demand, however, demand alone does not guarantee occupancy—multifamily properties that prioritize tenant experience and retention is key.

According to a recent survey, the industry average resident retention rate is 58%, and turnover costs are estimated to be around $4,000 per unit when factoring in lost rent, advertising costs, and turn-over related cleaning and repair expenses. This means that every vacant unit not only represents lost revenue but an operational setback that property managers must work to fix. Proactively investing in apartment renovations that keep pace with modern living expectations can help offset lost revenue, keep tenants happier, and generate a strong ROI.

With this in mind, reinvestment drives both immediate and long-term value of the multifamily property. Owners typically target an average 20% ROI on unit improvements, with a payback period of 18 to 24 months. The ROI greatly depends on factors such as building size, market positioning, and the types of upgrades selected, but the high-impact, in-unit upgrades often support rent increases of $50 to $250 per month. This added revenue helps offset the financial strain of tenant turnover—and in many cases, may even help prevent it. Another key consideration is how these reinvestments contribute to the building’s overall value, strengthening its market position and relative market value.

As an active general contractor in Chicago, we’ve outlined key trends that we’re seeing in multifamily renovations and new construction, and how owners and property managers can stay ahead by creating spaces that stay current with tenant expectations.

Top Ways to Add Value in Multifamily Construction Projects

1. IN-UNIT UPGRADES
In-unit amenities are a major selling point in lease renewals and multifamily competitiveness. Even the smallest upgrades, such as modern appliances or a fresh coat of paint, can make all the difference. According to a recent survey by Turbo Tenant, the most sought-after in-unit amenities include range ovens, dishwashers, hardwood floors, and washer and dryer units either on-site or in the unit. These features not only make the property more appealing but also justify higher rents and contribute to lower tenant turnover. Here is a list of other in-unit upgrades to consider:

• Kitchen and bathroom modernizations continue to be the most high-impact investments.
• Laundry installations increase convenience and drive retention.
• Updated flooring and lighting breathe new life into aging units.
• Reconfigured spaces for work-from-home flexibility, such as converting a dining area into a remote office, address evolving tenant needs.

2. COMMON AREA UPGRADES
From urban high rises to spacious suburban apartments, outdoor spaces are increasingly in demand. Residents prioritize experiential and community-focused amenities—whether it’s hosting guests, meeting neighbors, or simply enjoying shared spaces designed for social interaction. Below are a few projects that can successfully add value to your multifamily property:

• Co-working lounges and conference rooms for remote workers and community events.
• Fitness centers and wellness spaces to promote healthy living.
• Upgraded outdoor dining areas with grilling stations, fire pits, and rooftop gardens.
• Pet-friendly buildings and complementary amenities add to the appeal, such as dog runners and washing stations.

3. SUSTAINABLE PRACTICES
In many new builds, green practices have moved from forward-thinking to foundational, offering cost-saving opportunities for both resident and owner alike. Since 2010, Illinois has been a leader in sustainable building, frequently ranking among the top 10 states for LEED certification and securing the top spot more often than any other state. In Chicago, developers and property managers recognize that green-certified buildings go beyond environmental benefits—they command higher rents, maintain lower vacancy rates, and realize a 10% or greater increase in asset value. See a few ideas below to stay competitive:

• LED lighting and high-efficiency HVAC systems reduce energy costs and improve building performance.
• Solar panels and green roofs lower utility expenses while promoting environmental sustainability.
• Improved insulation and modern window replacements enhance energy efficiency and indoor comfort.
• On-site EV charging stations offer convenience for residents and keep properties aligned with evolving transportation trends.
• Water-saving features to help cut down on waste.

4. COMMUNICATION
Through our work on multifamily renovation projects, we’ve seen firsthand how transparent communication directly impacts tenant satisfaction. When residents have access to property updates, maintenance requests, and lease information, it fosters trust, strengthens engagement, and enhances their overall living experience. A well-informed tenant is more likely to feel invested in the community, which increases retention and brings long-term stability.

We’ve experienced similar results through our own efforts to enhance client communication. Our client portal serves as a centralized hub for real-time updates, keeping all stakeholders aligned and informed throughout a project. The same principles apply in property management—efficient, accessible communication helps property managers manage expectations and elevate satisfaction. Here are a few effective communication strategies we’ve observed:

• Resident portals and mobile apps streamline rent payments, maintenance requests, and property-wide announcements.
• Automated messaging and reminders keep residents informed about lease renewals, scheduled maintenance, and community events.
• Maintenance tracking and response transparency reassure residents that their concerns are being addressed efficiently.
• Online review management and proactive outreach help build trust and enhance the property’s reputation.

5. TECHNOLOGY
Today’s residents prioritize convenience, and smart home technology is one of the simplest ways to add value to a property. It provides a personalized experience and more control over their environment, from optimizing energy efficiency, enhancing security, and simplifying daily living. ETI works alongside industry experts to incorporate top of the line technology into many of our full-scale renovation and new construction projects.

From our own experience, integrating technology into our business has increased efficiency by 15%. ETI’s project management software and technology-driven workflows has led to fewer bottlenecks, more accurate budget and timeline forecasting, and greater control of project outcomes. Below are a few smart technologies that can elevate resident experience and convenience in your multifamily property:

• Smart locks, video intercom, and keyless entry offer enhanced security and flexibility for tenants.
• Wi-Fi-enabled thermostats and lighting allow residents to customize their space while reducing energy consumption.
• High-speed internet and improved cell signal infrastructure support remote workers and tech-savvy tenants.
• Automated package lockers make deliveries more secure and convenient.
• Mobile rent payment options give tenants a user-friendly way to pay, reducing late payments and simplifying financial management.

How ETI Can Help

Every multifamily property has unique factors that influence which upgrades will provide the highest return—demographics, location, and market positioning all play a role in determining the most effective strategy. Whether it’s modernizing in-unit features, improving common areas, or integrating sustainability measures, strategic reinvestment is key to maintaining competitiveness and maximizing long-term value.

As a leading multifamily contractor in Chicago, we understand the complexities of balancing tenant expectations, operational efficiency, and investment goals. Our expertise in value engineering ensures that each project is approached with a cost-effective, high-impact strategy that aligns with both market demand and financial objectives to generate the most ROI.

Schedule a consultation to see how strategic reinvestment can maximize your ROI and position your property to stay ahead in Chicago’s multifamily market.