Q2 2025 Columbus Multifamily Market Report
Market Overview
In Q2 2025, Columbus saw vacancy rates climb to a 20-year high of 8.9%, marking the third consecutive quarter of increases as new supply outpaced demand. Over the past year, net absorption hit a three-year peak of 5,900 units, but deliveries surged to 8,000 units, pushing inventory higher and widening the gap between overall and stabilized vacancy. Class B properties bore the brunt, with 4,800 units delivered and vacancy rising to 9.5%, while Class A saw restrained deliveries and a slight vacancy dip to 9.3% amid stronger demand. Rent growth slowed to 2.2% year-over-year—below the 10-year market average but still above the national 1.0% benchmark—bringing average market rent to $1,380/month, the highest regionally yet 22% under the national average. Submarket performance varied, with stronger rent gains in Bexley/Whitehall and Northeast Columbus, while Downtown lagged due to high vacancies from 2023’s delivery cycle.
Construction remained elevated, with 2,400 units completed in Q2 alone, the largest quarterly volume in two years. Delaware County led in annual deliveries with 31% of the total, followed by Upper Arlington and Downtown. Although construction starts have slowed, about 9,100 units —4.1% of inventory—were still underway, well above the national 2.8% benchmark. Projects like The Galaxy at Polaris, adding 600 units by year-end, reflect developer optimism, though downtown faces stiff competition from suburban mixed-use communities offering similar amenities at lower rents.
Overall, while Columbus’s demand fundamentals remain healthy, the persistent supply influx continues to challenge vacancy and rent performance, a trend likely to shape the market for the rest of 2025.
Effective Rent
Source: CoStar Group, Inc.
Construction Overview
Source: CoStar Group, Inc.
Supply & Demand Dynamics
Source: CoStar Group, Inc.
By the Numbers
- Sales Volume: $147M
- Rent Growth: 2.1%
- Vacancy Rate: 8.9%
- Cap Rate: 6.7%
- Market Asking Rent Per Unit: $1,379
- Units Under Construction: 9,231
- Units Delivered: 2K
- Units Absorbed: 1.7K | Q2 2025 | Source: CoStar Group, Inc.
Sales
Columbus’ multifamily investment market maintained steady momentum, contributing to a combined $306 million in sales over the first half of the year, more than double the volume recorded during the same period in 2024. The quarter was marked by an uptick in transaction activity, including the notable $78 million sale of three recently delivered buildings at Kaufmann Development’s Gravity 2.0 project in Downtown, now rebranded as Horizon West by buyer Normandy RE.
Institutional capital showed renewed interest, comprising 40% of the buyer pool over the past 12 months, well above the three-year average of 23%. The overall increase in deal flow underscores growing investor confidence, particularly in newly built or value-add assets, and signals a shift toward more active capital deployment in Columbus’ apartment sector.
Columbus Multifamily Sales Trends
Source: CoStar Group, Inc.
