average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
individual transactions
QUARTERLY DEMAND
YTD: 2,939
QUARTERLY COMPLETIONS
YTD: 4,830
In the third quarter of 2023, the Columbus apartment market saw strong seasonal demand, with renters absorbing a net positive 1,390 units—surpassing pre-pandemic historical third-quarter performance for absorption.
Notably, seven out of ten submarkets reported positive absorption, with the Downtown Columbus / University District leading all submarkets, as renters filled 721 units.
In Q3 2023, the Columbus apartment inventory grew by 2,100 units. The Downtown Columbus / University District submarket accounted for 824 of these new units constituting 39% of the total deliveries for the quarter.
In recent quarters, developers have concentrated on the Downtown submarket, which has become increasingly popular among young renters. A total of 1,848 units have been introduced here over the past year, more than twice the number of units delivered to all other submarkets combined during the same period.
The Columbus apartment market is set for sustained growth in the coming quarters, fueled by key drivers such as Ohio State University and the forthcoming opening of Intel’s microchip fab site. These elements are projected to maintain demand, despite an anticipated increase in new unit deliveries.
Rental demand will be concentrated in the Downtown Columbus / University District, Westerville / New Albany / Delaware, and Grove City / South Columbus submarkets, aligning with the locations of Ohio State University and Intel’s upcoming fab facility.
The Columbus, OH apartment market is projected to see a significant expansion in inventory, with an anticipated growth of 6,685 units over the next Four quarters.
The Downtown Columbus / University District and Reynoldsburg / Far East Columbus submarkets are expected to lead this growth, with the anticipated delivery of 2,174 and 1,076 units, respectively.
Average Monthly Mortgage Payment
Average Monthly Rent
Despite a 1.3 percentage point decrease in apartment occupancy over the 12 months ending in September, the Columbus metro area maintained a strong occupancy rate of 94.8%, showcasing its market resilience. Submarket fluctuations were minimal, with occupancy rates spanning between 93.4% and 95.2%. Additionally, the third quarter marked a positive turn, as occupancy in Class A properties rose by 20 basis points compared to the previous quarter, signaling a growing demand for luxury housing options. Given the projected increase in demand, expect occupancy rates to rebound in the near term, further bolstering the positive outlook for the Columbus apartment market.
In the third quarter, Columbus easily surpassed the national average for rent growth, which stood at 0.4%. The metro experienced a healthy 2.7% year-over-year increase, raising the average rent to $1,321. This performance was not uniform across all submarkets; North Central Columbus led with a 7.8% increase, while the Westerville / New Albany / Delaware area saw more modest growth at 0.8%. When analyzed by property class, the growth figures showed divergence. Class C units, recognized for their affordability, led with a 4.2% increase, followed by Class B properties at 2.9%. Class A units trailed at 1.2%, likely impacted by the influx of new apartment developments and a strategic focus on maintaining occupancy over increasing rents in this segment. Notably, the Downtown Columbus / University District continued to command the highest rent levels, with an average rent of $1,657, making it the priciest among the city’s 10 submarkets.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Downtown Columbus/University District | 94.6% | -0.7% | $1,657 | 1.2% |
| Dublin/Hilliard | 95.1% | -1.8% | $1,464 | 1.3% |
| Gahanna/Northeast Columbus | 95.3% | -0.3% | $1,336 | 4.8% |
| Grove City/South Columbus | 94.7% | -2.0% | $1,192 | 3.1% |
| North Central Columbus | 94.5% | -1.7% | $1,029 | 7.8% |
| Reynoldsburg/Far East Columbus | 95.1% | -0.6% | $1,222 | 3.0% |
| Southeast Columbus | 93.4% | -2.7% | $1,016 | 5.4% |
| Upper Arlington | 94.6% | -1.4% | $1,347 | 1.9% |
| West Columbus | 95.2% | -1.0% | $1,198 | 4.7% |
| Westerville/New Albany/Delaware | 95.2% | -1.0% | $1,468 | 0.8% |
| Columbus, OH | 94.8% | -1.3% | $1,321 | 2.7% |
Units Under Construction
Units UC Delivering In the Next 4 Quarters
According to Real Capital Analytics data, individual multifamily transactions in Columbus, OH, amounted to around $306.1 million during the first three quarters of 2023. Despite experiencing a 52% year-over-year decline in volume, this figure is consistent with transaction levels seen before the pandemic, indicating ongoing investor activity. While rising interest rates have slowed sales nationally, Columbus has remained resilient, closely resembling pre-pandemic sales trends. In fact, Columbus’ trade volume aligns with its five-year historical average for this period, underscoring the market’s stability. In terms of investors, private individuals continue to dominate, accounting for all individual transactions this year.
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual transaction $2.5M +
In August 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 8,600 new positions showcased a job growth rate of 0.8%, surpassing the rate of 1.0% reported in March. Various sectors within the region experienced substantial job gains, with the government sector leading the way by adding 5,400 new jobs, representing a notable 3.1% annual increase. Following closely behind was the mining, logging, and construction sector, which saw the addition of 4,700 jobs, expanding by an impressive 9.4%. In terms of unemployment, Columbus’s rate remained low at 3.4% in August, a decrease of 30 basis points from the previous year and well below the national average of 3.9%. These statistics underscore the resilience of Columbus’s economy, characterized by its diverse range of industries.
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 |
|---|---|---|
| Government | 5,400 | 3.10% |
| Mining, logging, and construction | 4,700 | 9.40% |
| Leisure and hospitality | 3,600 | 3.30% |
| Other services | 1,700 | 4.00% |
| Education and health services | 0 | 0.00% |
| Information | -400 | -2.20% |
| Financial activities | -500 | -0.60% |
| Manufacturing | -700 | -0.90% |
| Professional and business services | -1,900 | -1.00% |
| Trade, transportation, and utilities | -3,300 | -1.40% |
Columbus, OH, offers a more affordable lifestyle across multiple dimensions when compared to Chicago, IL. Notably, the lower housing and transportation costs make it particularly appealing for those looking for an economical alternative without sacrificing urban amenities. Given these factors, Columbus presents itself as a financially viable option for residents, especially young professionals and families.
92.1
$2,671
87.2
98.7
92.7
$327,500
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.
Despite experiencing a temporary dip in demand in the latter half of 2022, the Columbus rental market is poised for a rebound, supported by a resilient economy. RealPage forecasts that renters will absorb 7,893 units over the next four quarters, outpacing the number of new units expected to come online during the same period. Currently, there are 11,544 housing units under construction, with 6,781 slated for delivery by the end of Q3 2024. Contributing to this positive outlook are factors such as high occupancy rates, robust annual rent growth, and a steady pace of apartment completions. Overall, Columbus has consistently demonstrated a strong rental performance, even amidst recent economic fluctuations.
