Cleveland, OH Multifamily Market Report Q2 2026

Cleveland Tightens to 3.7% as Ohio’s Priciest Rental Market Runs Out of Supply

Demand

Cleveland’s vacancy fell to 3.68% in Q2, down 90 bps from Q1, continuing a sharp decline from above 5.9% in early 2024. Employment growth has essentially stalled, with the metro adding only about 800 net jobs in 2025 and holding roughly flat into 2026, yet demand keeps outpacing the market’s thin supply anyway. Rent grew 2.88% YoY to $1,451, a deceleration from Q1’s 4.80% but still among the highest average rents in Ohio. South Cleveland and Strongsville/Medina are the tightest submarkets at 2.3% and 2.2% vacancy.

 

Supply

Cleveland’s construction pipeline has all but disappeared. Units under construction stand at just 1,430, only 0.82% of inventory, while TTM completions of 1,481 units are little changed YoY after peaking near 1,900 in 2023. At Q2’s absorption pace, the entire remaining pipeline could clear in under a single quarter, and permitting here ranks among the lowest of any major U.S. metro, which should keep vacancy tight through the rest of 2026.

 

Investment Market

Unlike the rebounds seen in some other Matthews™ markets, Cleveland’s investment activity cooled: TTM volume fell to $297.4M, down 10.4% YoY, with Q2 alone landing at just $38.6M against an unusually large year-ago comp. Cap rates crept higher to 8.01%, up modestly from 7.96% a year ago and among the highest in the Matthews footprint.

Price per unit held essentially flat at $78,300, down 0.4% YoY, a sign pricing has plateaued even as the operating story keeps improving. Buyers here have not yet caught up to what the vacancy and supply numbers are saying.

Volume

• TTM $297.4M, down 10.4% YoY
• Q2 $38.6M, down on lumpy comps
• Softest volume in this set

Pricing

• PPU $78.3k, down 0.4% YoY
• Cap rate near 8.0%
• Rent growth cooling but still positive