$1,308
average rent
95.0%
average occupancy rate
$212.5M
ytd sales volume
average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 1,469
QUARTERLY COMPLETIONS
YTD: 2,794
Average Monthly Mortgage Payment
Average Monthly Rent
Despite a 2.1 percentage point drop in apartment occupancy over the 12 months ending in June, the Columbus metro area maintained a robust occupancy rate of 95.0%, demonstrating its resilience. Submarket variation was minimal, with occupancy rates between 94.3% and 95.5%. Furthermore, the second quarter brought a positive shift as Class B property occupancy increased by 20 basis points from the previous quarter, signifying a rise in demand for mid-priced housing. Given the projected demand surge, we anticipate a rebound in occupancy rates soon, reinforcing a positive market outlook.
Columbus showcased strong performance in the second quarter of the year, with rents rising 4.6% year-over-year to reach $1,308. The annual growth rate varied across submarkets, peaking at 11.5% in North Central Columbus and reaching a low of 2.8% in the Gahanna/Northeast Columbus area. When comparing asset classes, the growth was less disparate. Class C units, typically the most affordable, led with a 5.7% increase, followed by Class A at 5.0%, and Class B at 3.9%. Among the 10 submarkets monitored by RealPage, the Downtown Columbus/University District retained its position as the priciest, with rents surging to $1,638.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Downtown Columbus/University District | 94.3% | -2.2% | $1,638 | 5.1% |
| Dublin/Hilliard | 95.4% | -2.7% | $1,470 | 4.4% |
| Gahanna/Northeast Columbus | 95.2% | -1.9% | $1,294 | 2.8% |
| Grove City/South Columbus | 94.9% | -2.4% | $1,171 | 5.3% |
| North Central Columbus | 95.5% | -1.9% | $1,021 | 11.5% |
| Reynoldsburg/Far East Columbus | 95.1% | -1.5% | $1,210 | 2.9% |
| Southeast Columbus | 94.4% | -2.7% | $1,000 | 6.4% |
| Upper Arlington | 95.3% | -2.4% | $1,342 | 4.0% |
| West Columbus | 95.4% | -1.0% | $1,184 | 6.1% |
| Westerville/New Albany/Delaware | 95.0% | -2.3% | $1,444 | 3.0% |
| Columbus, OH | 95.0% | -2.1% | $1,308 | 4.6% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
Data from Real Capital Analytics shows that individual conventional multifamily transactions in Columbus, OH, totaled approximately $212.5 million in the first half of 2023. Despite a 41% year-over-year drop in volume, this figure aligns with pre-pandemic transaction averages, indicating that investors continue to pursue and close deals. While a rapid rise in interest rates has softened sales activity nationwide, Columbus has remained resilient, closely mirroring pre-pandemic sales volume trends. In fact, Columbus’ trade volume is about 25% above its five-year historical average for this period, underscoring the market’s relative stability. Examining the investor landscape, private investors maintain their position as the dominant market players, accounting for all individual transactions in the first half of the year.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In May 2023, the job market in the Columbus, OH Metro area exhibited remarkable strength, as reported by the Bureau of Labor Statistics (BLS). The addition of 16,200 new positions showcased a job growth rate of 1.4%, surpassing the rate of 1.0% reported in March. Various sectors within the region experienced substantial job gains, with the Mining, logging, and construction sector leading the way by adding 6,100 new jobs, representing an impressive 12.6% annual increase. Following closely behind was the leisure and hospitality sector, which saw the addition of 4,700 jobs, expanding by 4.4%. In terms of unemployment, Columbus’s rate remained low at 3.0% in May, a decrease of 10 basis points from the previous year and well below the national average of 3.4%. These statistics underscore the resilience of Columbus’s economy, characterized by its diverse range of industries.
May Annual Jobs Created
May 23 Employment growth
May 23 Unemployment rate
3.4% us may rate
Change from May 2022
to May 2023: 6,100
Percent Change: 12.6%
Change from May 2022
to May 2023: 4,700
Percent Change: 4.4%
Change from May 2022
to May 2023: 3,800
Percent Change: 2.1%
Change from May 2022
to May 2023: 2,800
Percent Change: 6.7%
Change from May 2022
to May 2023: 2,500
Percent Change: 1.6%
| Sector | Change from May 2022 to May 2023 | Percent Change |
|---|---|---|
| Mining, logging, and construction | 6,100 | 12.6% |
| Leisure and hospitality | 4,700 | 4.4% |
| Government | 3,800 | 2.1% |
| Other services | 2,800 | 6.7% |
| Education and health services | 2,500 | 1.6% |
| Professional and business services | 0 | 0.0% |
| Manufacturing | -200 | -0.3% |
| Information | -500 | -2.7% |
| Trade, transportation, and utilities | -1,200 | -0.5% |
| Financial activities | -1,800 | -2.1% |
Columbus has consistently demonstrated solid rental performance, underpinned by a steady economy, even amidst recent economic fluctuations. Despite a temporary dip in demand during the latter half of 2022, the market is projected to rebound, with RealPage forecasting renters to absorb 7,500 units over the next four quarters. This will surpass the new unit inventory expected to be available over the same period. Of the 11,500 housing units currently under construction, 6,685 are slated for delivery by the end of Q2 2024. Factors such as high occupancy rates, strong annual rent growth, and moderate yet consistent apartment completions contribute to a positive outlook for the Columbus market.
