Columbus, Ohio Multifamily Market Analysis – Q1 2025
The Columbus multifamily market showed early signs of stabilization in Q1 2025, supported by moderating vacancy, steady rent growth, and a temporary surge in institutional investment activity. This summary outlines the latest market and capital trends based on CoStar’s most recent data, offering a data-driven snapshot of key shifts shaping Columbus’ multifamily landscape.
- Vacancy Rate declined by 30 basis points from late 2023, settling at 8.7%.
- Net Absorption totaled 6,142 units over the past 12 months — 20% above the pre-pandemic average (2015–2019).
- 12-Month Deliveries reached 7,346 units, 16% below pre-COVID norms.
- Rent Growth held steady at 2.3% YoY, placing Columbus among the top 10 apartment markets in the U.S. for rent growth.
- Mid-priced (3-Star) units saw demand surge, with net absorption more than doubling the pre-pandemic level. However, vacancy climbed to a 20-year high of 8.8% due to record new supply.
- High-end (4 & 5-Star) vacancy fell 150 basis points year-over-year to 9.5%, driven by a drop in new deliveries despite weaker absorption.
- Average Asking Rents by Tier:
- 4 & 5 Star: $1,620
- 3 Star: $1,368
- 1 & 2 Star: $1,022
- Population Growth in Columbus (2020–2023): 1.8%, compared to the national average of 1%, supporting housing demand fundamentals.
- Under Construction: 10,026 units are underway, representing 4.5% of total inventory — higher than the U.S. benchmark of 3.2%.
- Forecasted Pullback: Deliveries are expected to decline by 37% in 2025, which may tighten vacancy further.
- Submarket Demand Drivers:
- Southern Columbus: Accounted for 25% of net absorption, driven by logistics job growth in Groveport and Canal Winchester.
- Northeast Columbus: Represented 20% of absorption, led by development around Intel’s New Albany campus.
- Rent Growth by Segment:
- 4 & 5 Star: +1.4%
- 3 Star: +2.5%
- Top-Performing Submarkets: Bexley/Whitehall and Northeast Columbus (rent gains between 4%–6%).
- Only Negative Rent Growth: Downtown Columbus, affected by lingering high vacancy and previous oversupply, though recovery is expected in H2 2025.
- 12-Month Sales Volume: $700.4 million across 94 transactions.
- Total Units Sold: 8,800 units with an average of 93 units per deal.
- Average Price per Unit: $79,500, ranging from $25,400 to $400,800/unit.
- Market Cap Rate: Averaged 6.7%, with a range from 2.4% to 10.1%.
- Sales-to-Asking Price Gap: Narrow margin of -0.4%, showing stable pricing confidence.
- Occupancy at Sale: Average of 91.3%, with some deals closing at full occupancy.
- Record Sale: The Gardens sold for $170 million (1,064 units at $159,800/unit), marking the highest transaction ever for the region.
- Major Q4 Transactions:
- Buyer Profile Shift:
- Institutional investors comprised 56% of 12-month volume, up from a 5-year average of 22%.
- Private buyers dropped to 23%, down significantly from historical norms.
- Top Submarkets by Sales Volume:
- Northeast Columbus: $348M (24 transactions)
- Upper Arlington: $93.4M (20 transactions)
- Downtown Columbus: $81.3M (6 transactions)
Data Source: Costar Group
