Columbus, OH Multifamily Market Analysis – Q3 2025
Columbus multifamily fundamentals remained resilient through Q3 2025 amid record new supply and steady investment activity. Vacancy rose modestly to 9.9% as 9,400 new units delivered over the past 12 months, while absorption reached 5,586 units. Annual rent growth eased to 1.2%, though still above the national average of 0.5%. Total sales volume for the past year stood at $844 million with an average market cap rate of 6.7% and price per unit of $143,000. Institutional capital retained roughly 40% of all buyer activity.
Market Annual Trends
(Historical = 10-year trailing average | Forecast = upcoming 12-month)
- Delivered Units (12 Mo): 9,437 | Historical Avg: 3,807 | Forecast: 4,139 | Peak: 9,629 (Q3 2025)
- Absorption Units (12 Mo): 5,586 | Historical Avg: 3,140 | Forecast: 4,178 | Peak: 8,507 (Q4 2021)
- Vacancy Rate: 9.9% | Historical Avg: 7.0% | Forecast: 9.0% | Peak: 10.1% (Q4 2003)
- Asking Rent Growth: 1.2% | Historical Avg: 2.1% | Forecast: 2.3% | Peak: 7.6% (Q2 2022)
- Average Asking Rent: $1,363/month (current period snapshot only)
- Under Construction: 8,011 units (3.5% of inventory) (current total)
- Top Submarket Deliveries: Delaware County (25% of new units), Upper Arlington (20%), Downtown Columbus (12%)
- Rent Performance by Submarket: Highest gains in Bexley/Whitehall (+4%) and Southern Columbus (+4.7%); weakest in Delaware County (-2.2%) and Downtown (-1.0%)
Capital Markets Overview
- Total Asset Value: $33.8 billion
- 12-Month Sales Volume: $844.2 million across 121 transactions
- Market Cap Rate: 6.7% (range: 2.4% – 10.0%)
- Average Sale Price/Unit: $143,400
- Average Sale Price: $13.6 million
- Average % Leased at Sale: 89%
- Institutional Capital Share of Buyers: 40% (vs. 23% 3-year avg)
- Most Active Buyers: Morgan Properties, Columbus Metropolitan Housing Authority, Normandy RE, and Nuveen
- Largest Transactions:
- The Gardens ($170M; $160K/unit)
- The Bradford at Easton ($59.1M; $182K/unit)
- Central Park Apartments ($48.8M; $167K/unit)
- Sawmill Crossing ($38.4M; $105K/unit)
- Gravity 2.0 (Horizon West) Portfolio ($78M total)
- Top Submarkets by Sales Volume:
- Northeast Columbus: $349M (6.3% cap)
- Downtown Columbus: $207M (6.1% cap)
- Upper Arlington: $95M (6.9% cap)
- Dublin/Hilliard: $87M (6.6% cap)
Takeaways
Compared to Q2 2025 report, vacancy has edged slightly higher from 8.8% to 9.9% as deliveries continued to outpace absorption. Rent growth decelerated from 2.1% to 1.2%, indicating early signs of softening in mid-tier 3-star inventory where new supply is concentrated. Investment activity, however, held steady with total sales volume nearly identical to Q2 levels. Institutional re-engagement and several notable downtown trades signal continued confidence in the long-term fundamentals of the Columbus market despite near-term supply pressures.
Source: CoStar Group, Columbus OH Multifamily Market Report & Capital Markets Report (October 2025)
