Multifamily Market Analysis – Columbus, Ohio – Q2 2025
The Columbus multifamily market saw continued strong demand in Q2 2025 with net absorption significantly above historical averages. However, record-level new deliveries pushed vacancy to its highest level in over two decades. Investment activity remained steady, with institutional capital representing a larger share of buyers and several notable high-value transactions closing during the quarter.
Market Annual Trends
- Delivered Units: 7,975 | Historical Avg: 3,702 | Forecast: 4,513 | Peak: 8,488
- Net Absorption: 6,123 | Historical Avg: 3,123 | Forecast: 4,371 | Peak: 8,540
- Vacancy Rate: 8.8% | Historical Avg: 7.0% | Forecast: 8.4% | Peak: 10.3% (2003 Q4)
- Asking Rent Growth: 2.2% | Historical Avg: 2.1% | Forecast: 2.7% | Peak: 7.6% (2022 Q2)
- Effective Rent Growth: 1.9% | Historical Avg: 2.1% | Forecast: 2.7% | Peak: 8.0% (2022 Q2)
- Average Asking Rent: $1,378 market-wide; $1,665 for 4 & 5-Star units, $1,392 for 3-Star units
- 3-Star Units: Vacancy reached 9.1% (highest in nearly 20 years); deliveries totaled 4,700 units, nearly triple pre-pandemic levels
- 4 & 5-Star Units: Vacancy declined 120 basis points to 9.4%, with 3,300 units delivered
- Under Construction: 8,976 units, representing 4.0% of inventory
- Key Development Areas: Delaware County accounted for 31% of units delivered; Downtown Columbus contributed 17%, and Upper Arlington 15%
Capital Markets Overview
- Total Asset Value: $32.6 billion
- 12-Month Sales Volume: $874.4 million
- Market Cap Rate: 6.8%
- Average Sale Price/Unit: $140,000
- Total Transactions: 118, involving 110 properties and 9,600 units
- Institutional Capital: Comprised 40% of the buyer pool, up from the 3-year average of 23%
- Top Sale: The Gardens sold for $170 million (1,064 units), marking a record price for Columbus
- Other Notable Transactions:
- Gravity 2.0 project traded for $78 million
- The Bradford at Easton sold for $61 million ($188,200/unit)
- Central Park Apartments sold for $57 million ($177,700/unit)
- Submarket Highlights:
- Northeast Columbus: $394.3M sales volume, 6.3% cap rate, $137,796/unit
- Downtown Columbus: $181.2M sales volume, 6.2% cap rate, $227,427/unit
- Upper Arlington: $97.1M sales volume, 6.9% cap rate, $152,172/unit
Takeaways
Compared to Q1 2025, Q2 saw a continued rise in vacancy as new supply outpaced demand. While absorption levels remained strong, the influx of deliveries further pressured occupancy rates. Investment activity strengthened quarter-over-quarter, driven by increased institutional participation and several record-setting sales. The market’s long-term fundamentals remain supported by strong demand drivers, though elevated vacancy may persist as additional units are delivered through the remainder of the year.
Data Source: Costar Group
