average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 1,046
QUARTERLY COMPLETIONS
YTD: 2,344
Average Monthly Mortgage Payment
Average Monthly Rent
In the third quarter of 2023, Cincinnati’s market-wide occupancy declined by 1.4 percentage points year-over-year to 95.5%. This is notably down from its early 2022 peak of over 98%, yet still ranked within the top 10 performances among the nation’s 50 largest markets. The occupancy landscape differed across product classes: Class A units reported an occupancy rate of 94.8%, Class C units slightly outperformed with a 95.9% occupancy rate, while Class B properties achieved an average occupancy rate of 95.7%. Furthermore, four of Cincinnati’s submarkets exhibited particularly strong performance, recording occupancy rates of 96% or higher in the same period. Despite a mild year-over-year decline, Cincinnati’s market-wide occupancy remains robust, underlining the city’s relative resilience in the multifamily housing sector.
In the third quarter of 2023, Cincinnati’s annual change in average rent stood at an elevated 4.5%, a rate that is significantly above the pre-COVID historical norm of roughly 2% annual growth, ranking it second highest among the nation’s 50 largest markets, just behind Newark, NJ. Diverging performance among asset classes was evident, as Class B and Class C units substantially outperformed their long-term averages with annual growth rates of 5.8% and 6.5%, respectively. In contrast, Class A units underperformed, with a 1.6% growth rate compared to a long-term average of 2.9%. Among the city’s nine submarkets, four exceeded a 5% annual rent growth, led by North Cincinnati at 7.1%, while Central Cincinnati trailed with the weakest annual growth at 1.9%. This highlights both Cincinnati’s robust overall rent growth and areas that warrant closer attention.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Central Cincinnati | 93.3% | -2.8% | $1,762 | 1.9% |
| North Central Cincinnati | 93.7% | -2.4% | $1,405 | 2.5% |
| West Cincinnati | 96.2% | -1.6% | $1,026 | 6.8% |
| North Cincinnati | 95.4% | -0.6% | $1,227 | 7.1% |
| Butler County | 95.2% | -1.2% | $1,323 | 2.8% |
| Northeast Cincinnati/Warren County | 96.0% | -1.1% | $1,594 | 4.6% |
| Southeast Cincinnati | 96.4% | -1.0% | $1,226 | 5.9% |
| Campbell/Kenton Counties | 96.9% | -0.6% | $1,394 | 4.2% |
| Boone County/Erlanger | 95.2% | -1.7% | $1,259 | 5.8% |
| Cincinnati, OH Metro Area | 95.5% | -1.4% | $1,364 | 4.5% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
In Cincinnati, the multifamily transaction landscape for the first three quarters of 2023 presented a nuanced picture. While transaction dollar volumes increased approximately 7% year-over-year to around $188.6 million, the number of transactions significantly declined by 47% within the same period, with only 11 single-asset conventional apartment properties changing ownership. The decline in transaction volume this year appears to be offset by a increase in the average price per unit, which rose to approximately $185,137—a 50% annual growth. This robust escalation in unit pricing suggests that the properties changing hands were of superior quality compared to previous periods.
Although this average price per unit surpasses the Midwest regional norm of $159,400, it remains below the U.S. average of $219,700.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
As of August 2023, Cincinnati’s employment landscape has demonstrated promising growth, outpacing the national average in several sectors. The city witnessed a substantial increase in job creation with 29,900 new positions added, marking a 2.6% employment growth rate. Sector gains were most prominent in Leisure and Hospitality, which saw a robust 10.8% increase, adding 14,000 new jobs. Education and Health Services followed with a 4.4% growth rate, contributing an additional 7,400 jobs. Government and Manufacturing sectors also experienced healthy gains, growing by 2.8% and 2.7%, respectively. Cincinnati’s employment picture for August 2023 suggests a vibrant and growing job market, particularly favorable when compared to national trends.
August Annual Jobs Created
August 23 Employment growth
August 23 Unemployment rate
3.9% us August rate
| Sector | Change from Aug 2022 to Aug 2023 | Percent Change |
|---|---|---|
| Leisure and hospitality | 14,000 | 10.8% |
| Education and health services | 7,400 | 4.4% |
| Government | 3,500 | 2.8% |
| Manufacturing | 3,200 | 2.7% |
| Other services | 2,300 | 5.8% |
| Mining, logging, and construction | 1,600 | 3.1% |
| Trade, transportation, and utilities | 100 | 0.0% |
| Information | (100) | -0.7% |
| Financial activities | (900) | -1.1% |
| Professional and business services | (1,200) | -0.6% |
In a cost-of-living comparison between Cincinnati, OH and Chicago, IL, Cincinnati emerges as the more budget-friendly option for both renters and homeowners. With a Cost of Living Index of 96.9, Cincinnati sits below the national benchmark of 100, offering a generally more affordable lifestyle. Housing costs in Cincinnati are notably 42.5% lower than in Chicago, offering significant savings in a category that usually constitutes the largest portion of an individual’s monthly expenses. Although utilities in Cincinnati are marginally higher by 1.7%, transportation and healthcare are less expensive by 5.9% and 4.2% respectively. Overall, Cincinnati presents a compelling financial advantage in multiple categories of living expenses when compared to Chicago.
96.9
$2,244
86.8
96
104.6
$294,200
The “Cost of Living” index score provides a comparative assessment of the relative expense involved in maintaining a standard of living in a specific area, benchmarked against a national index score of 100.
Cincinnati has proven to be resilient, sidestepping the pronounced demand slowdown that plagued many other major U.S. markets in 2022. Furthermore, its annual rent growth climbed to the second-highest rank among the nation’s 50 largest markets in the third quarter of 2023. However, the market is expected to revert to its traditional, measured performance patterns in upcoming quarters. The influx of new supply is likely to curb pricing power and soften rent growth rates to align more closely with historical averages. This heightened inventory will particularly challenge the Class A segment, as the absorption of new products in Cincinnati typically takes longer than in faster-growing markets. Meanwhile, occupancy rates are projected to stabilize but may face pressures in submarkets with significant upcoming supply additions. Nevertheless, the outlook for Cincinnati remains decidedly positive over the next four quarters, anchored by its recent strong performance and the underlying fundamentals of the market.
