Q1 2025 Columbus Multifamily Market Report

Multifamily Overview

Columbus multifamily has emerged as one of the fastest-growing markets in the Midwest, thanks to its affordability and strong job market, driving increased demand for housing. Demand for mid-tier rental units has risen significantly in recent quarters. Much of this surge is due to delayed demand from the pandemic era, particularly among first-time renters. As a result, net absorption for Class B apartments has doubled compared to pre-pandemic norms. However, despite this recovery in demand, the vacancy rate for Class B units has reached a 20-year high of 9.1%, driven by a surge in new supply—nearly three times higher than typical pre-pandemic levels over the past six months. This vacancy rate also exceeds the national average for similarly rated Class B units by 140 basis points.

Economic Overview

Although Columbus has seen vacancy rates rise to historic highs due to record-setting new supply since 2020, the volume of new deliveries has remained relatively modest compared to the national average. This more restrained level of construction has helped sustain solid rent growth, placing Columbus among the top ten U.S. markets for rental rate increases. In the first quarter of 2025, annual rent growth eased slightly to 2.6%, which is 40 basis points lower than the typical yearly growth observed between 2015 and 2019.

Vacancy rates in Columbus are projected to remain elevated in the near term. While above-average population growth is expected to support ongoing household formation, the city’s active construction pipeline is anticipated to maintain new housing deliveries at levels significantly above the historical norm. Broader macroeconomic conditions also introduce downside risks to the forecast. Although the local economy benefits from resilient non-cyclical employment sectors and a growing advanced manufacturing presence, Columbus retains notable exposure to weaker-performing segments, particularly discretionary retail.