MARKET SNAPSHOT
$1,309 3Q 2024
93.6% 3Q 2024
1,624 [YTD: 4,699]
2.8% 3Q 2024
-10 BASIS POINTS
1,852 [YTD: 4,629]
Approximately 4,700 multifamily units were absorbed on a net basis in the first three quarters of 2024, which was 30% above the average over the same period between 2015 and 2019.
Columbus continues to stand out among the largest multifamily markets in the U.S., with annual rent growth averaging nearly 3% over the past three quarters.
Looking ahead, the sharp decline in construction starts in 2024 is expected to drive tighter occupancy rates by late 2025 and into 2026.
Approximately 4,700 multifamily units were absorbed on a net basis in the first three quarters of the year, which was 30% above the average over the same period between 2015 and 2019. Mid-tier units experienced a strong rebound in net absorption, driven by pent-up demand and new household formations among younger renters as consumer confidence improves. On a submarket level, the Southern Columbus submarket led with nearly 1,200 units absorbed over the past 12 months, accounting for over 20% of the market’s total absorption during this period. The Upper Arlington and Downtown Columbus submarkets also saw significant renter demand, with annual net absorption of 855 and 738 units, respectively.
As of the third quarter of 2024, around 9,100 units are under construction in Columbus, representing 4.2% of inventory—on par with the national average but ahead of Midwest peer markets. Deliveries over the past year were concentrated in the Delaware County, Upper Arlington, Southern Columbus, and Downtown Columbus submarkets, accounting for two-thirds of delivered units over this period of time. The Southern Columbus submarket has experienced rapid growth since 2024, fueled by logistics job expansion in suburbs like Canal Winchester and Groveport, while Upper Arlington’s development is anchored by The Grandview Yard mixed-use project, home to Nationwide Insurance.
With net rental demand closely matching newly delivered inventory over the past three quarters, the average stabilized occupancy rate in Columbus has remained largely unchanged from a year ago. However, performance varied at the submarket level. Fairfield County saw a 70-basis-point increase in occupancy, the largest gain in the Columbus multifamily market during the third quarter, while Downtown Columbus experienced the steepest decline, with occupancy falling by 130 basis points year-over-year. While overall multifamily development in the metro has been moderate, Downtown Columbus has seen sustained inventory expansion over the last three years, contributing to its lagging performance. Looking ahead, the sharp decline in construction starts in 2024 is expected to drive tighter occupancy rates by late 2025 and into 2026.
Columbus continues to stand out among the largest multifamily markets in the U.S., with annual rent growth averaging nearly 3% over the past three quarters—well above the national average of 1.0%—driven by a relatively moderate pace of apartment development over the last three years. As of the third quarter of 2024, the metro recorded a 2.8% year-over-year rent increase, raising the average rent for new leases to $1,309. Only two submarkets—Madison County and Downtown Columbus—saw rent declines, while Morrow County led with a 7.1% increase. Growth in lower-cost areas has bolstered overall market performance as residents increasingly seek more affordable housing amid rising living expenses. Strong population growth and a notable slowdown in deliveries are expected to tighten market conditions in Columbus in the coming years, supported by the metro’s non-cyclical job sectors and a growing advanced manufacturing industry.
The Columbus metro area experienced steady economic growth in August 2024, with 2,300 jobs added—a modest 0.2% year-over-year increase, according to the Bureau of Labor Statistics (BLS). The Education and Health Services sector continued to lead job creation, adding 7,000 positions, reflecting a 4.1% rise. The Mining, Logging, and Construction industry posted the largest percentage growth, expanding by 8.3% with 4,300 new jobs. The city’s unemployment rate remained stable at 4.0%, 20 basis points below the national average.
August 2024 ANNUAL JOBS CREATED
AUGUST 2024 EMPLOYMENT GROWTH
AUGUST 2024 Unemployment rate
4.2% us August rate
Nominal Change
from August 2023
to August 2024: 7,000
Percent Change: 4.1%
Nominal Change
from August 2023
to August 2024: 4,300
Percent Change: 8.3%
Nominal Change
from August 2023
to August 2024: 2,800
Percent Change: 1.5%
Nominal Change
from August 2023
to August 2024: 1,400
Percent Change: 3.2%
Nominal Change
from August 2023
to August 2024: 300
Percent Change: 0.3%
| Sector | Nominal Change from August 2023 to August 2024 | Percent Change |
|---|---|---|
| Education and Health Services | 7,000 | 4.1% |
| Mining, Logging, and Construction | 4,300 | 8.3% |
| Government | 2,800 | 1.5% |
| Other Services | 1,400 | 3.2% |
| Leisure and Hospitality | 300 | 0.3% |
| Information | -800 | -4.3% |
| Manufacturing | -1,900 | -2.5% |
| Financial Activities | -2,100 | -2.5% |
| Professional and Business Services | -2,100 | -1.1% |
| Trade, Transportation, and Utilities | -6,800 | -3.0% |
Intel is constructing a semiconductor chip plant on a 1,000-acre site in Licking County, OH, scheduled for completion in late 2026.
Healthcare technology company Gifthealth will expand its operations in Columbus, OH, following project approval by the Columbus City Council in late 2024.
John Glenn International Airport has received approval for a $2 billion dollar expansion project.
As 2024 draws to a close, the Columbus, OH apartment market continues to outperform many U.S. markets, bolstered by strong economic growth and a well-balanced construction pipeline. Demand remains robust, with net absorption exceeding year-to-date completions. Columbus is emerging as a key investment hub in the Midwest, driven by its growing tech sector, Ohio State University, and business-friendly policies. The Education and Health Services sector is playing a crucial role in employment growth, further boosting housing demand. As businesses expand and the population grows, the need for housing will continue to rise, creating valuable investment opportunities. These commercial and residential developments are poised to fuel further economic growth, reinforcing Columbus’s appeal to both investors and residents.
Sources: Costar; ESRI; U.S. Census Bureau; Yardi Matrix; U.S. Bureau of Labor Statistics
