Ohio’s multifamily market is undergoing a transformation that more seasoned investors are beginning to notice. While coastal markets continue to draw attention with sky-high valuations and razor-thin cap rates, the Buckeye State is quietly building a narrative of sustainable demand growth rooted in genuine economic fundamentals. For investors seeking strong risk-adjusted returns in an uncertain environment, the underlying forces driving Ohio’s momentum deserve serious analysis.
The Absorption Reality: Demand That Defies Expectations
Ohio absorbed 15,890 multifamily units in the 12 months through March 2025, maintaining an impressive 95.5% statewide occupancy rate. This isn’t simply a strong number; it represents genuine velocity in a market that many overlook. Columbus captured 6,536 net move-ins, representing over 41% of statewide absorption. Cincinnati followed with 4,641 units, while Cleveland added 3,161 units to the occupied inventory. Source
What makes these figures particularly compelling is the context. This absorption occurred while developers delivered approximately 4,700 new multifamily units in Columbus during just the first three quarters of 2024, representing a 30% increase over historical averages for the same period. The market isn’t just absorbing units, it’s digesting significant new supply without breaking occupancy momentum. Source
Cincinnati’s occupancy jumped 1.2 percentage points to reach 95.8%, the highest among the three major metros. Meanwhile, Columbus maintained stable occupancy despite facing the largest construction pipeline in the state. This divergence reveals different supply and demand equilibria across markets, offering investors strategic entry points matched to their risk profiles. Source
Why Ohio Is Winning the Migration Battle
The migration story requires a nuanced understanding. While Ohio saw 56.3% of movers leave versus 43.7% moving in during 2024, the composition of who’s arriving matters more than the net figure suggests. Columbus added 61,601 net new residents from international migration over the past four years, positioning it as a Midwest population growth leader. The metro’s growth rate in 2024 ran 38% higher than the national average, outpacing peer cities including Indianapolis. Source
The demographic profile tilts younger and more educated. Millennials and Gen Z, priced out of coastal markets, are choosing Ohio metros for their combination of employment opportunities and livability. Columbus benefits from Ohio State University’s pipeline of younger renters who often transition into the local workforce. Nationally, Gen Z accounts for 30.5% of all renters, and their concentration in affordable metros with job opportunities drives sustained rental demand. Source
The affordability advantage is quantifiable and substantial. Ohio’s median home price sits at $242,700, approximately 42% more affordable than comparable properties in gateway markets when adjusted for local wages. Median rent averages $1,444 statewide, well below coastal comparisons. Columbus averages $1,310 monthly for multifamily units, while Cincinnati reached $1,353. These figures represent genuine value relative to local income levels. Source
Cincinnati ranked 29th in overall affordability among 100 metros, performing particularly well in cost of goods, where it placed ninth nationally. Cleveland’s overall cost of living runs 9% below the national average, with housing costs 19% cheaper than typical American markets. For renters evaluating where to live and work, these differentials matter enormously.
Rent Growth in a Supply Heavy Environment
Despite 17,816 units currently under construction statewide, rent growth hasn’t collapsed. Cincinnati posted the strongest performance at 3.1% year-over-year growth, reaching an average of $1,353 monthly. Columbus achieved 2.9% growth, while Cleveland recorded 2.3% gains. The statewide average reached $1,310.80 per month. Source
Columbus earned recognition as one of the top five markets nationally for multifamily rent growth, demonstrating pricing power even while absorbing one of the nation’s most aggressive construction pipelines relative to existing supply. Industry analysts project 3.2% rent growth and 95% occupancy over the next 12 months for Columbus, optimistic forecasts backed by fundamental demand rather than speculation. Source
The supply response is moderating at a strategically advantageous moment. Multifamily housing starts dropped nearly 40% in 2023 and 2024, reducing the risk of prolonged oversupply. Anticipated starts in 2025 represent thoughtful development responding to sustained demand rather than speculative overbuilding. Source
The Employment Foundation Nobody Discusses
Ohio added 34,300 nonfarm jobs in 2024, a modest 0.6% increase, bringing total employment to 5,650,400. Private employment rose by 22,800 positions. These aren’t headline-grabbing numbers, but they represent something more valuable for real estate investors: predictable stability.
Columbus deserves particular attention. Revised employment data revealed the metro ranks fourth nationally for year-over-year job growth, with manufacturing alone adding 3,100 more jobs than initial estimates suggested. The metro hosts approximately 1.16 million workers, with unemployment consistently below 4% statewide. Ohio maintains over 273,000 job openings as of April 2025, indicating sustained labor demand. Source
This employment base spans manufacturing, healthcare, education, technology, and logistics. Economic diversification insulates rental demand from sector specific shocks that can devastate markets dependent on a single industry.
Investment Dynamics and Relative Value
Investment volume reached $336 million in the 12 months through March 2025, an 8% year over year increase. More interesting than volume is the pricing dynamic. Midwest multifamily properties, including Ohio markets, historically trade at cap rates approximately 45 basis points above national benchmarks. With national multifamily cap rates expected between 5.0% and 6.5%, Ohio markets offer enhanced yield for investors willing to look beyond traditional gateway cities
.Columbus attracted the largest transactions, including Reynolds Asset Management’s $34.93 million acquisition of a 432-unit property, alongside significant purchases by institutional players like Tailwind Group and Azura Capital. Transaction velocity and pricing suggest sophisticated capital recognizes Ohio’s value proposition: stable occupancy, positive rent growth, and yields exceeding compressed coastal markets.
Columbus’s vacancy rate tightened to 5.2% by the fourth quarter of 2024, comparing favorably against the 5.8% national average vacancy rate over the past 15 years. This tightening occurred despite significant new supply, underscoring the strength of underlying demand. Source
The Opportunity Window
The most compelling investment opportunities often arrive wrapped in modest headlines and overlooked geographies. Ohio’s multifamily story isn’t about explosive growth or speculative momentum. It’s about stable, sustainable demand meeting supply at a moment when valuations reflect concern rather than complacency.
For investors watching coastal markets deliver single-digit unlevered returns while bearing significant downside risk from tech sector concentration, regulatory uncertainty, and climate exposure, Ohio offers a different equation. Mid single digit rent growth, occupancy in the mid 90s, cap rates that provide actual yield, and economic diversification that dampens volatility create an attractive risk return profile.
The 15,890 units absorbed over the past year, the 95.5% occupancy rate, and the 2.9% to 3.1% rent growth across major metros represent exactly what sophisticated investors increasingly prize: predictable cash flows, positive arbitrage between construction costs and market rents, and demographic tailwinds that don’t require heroic assumptions to underwrite.
A 40% decline in construction starts in recent years has set the stage for potential supply tightening by 2026, creating a strategic entry window for investors who understand the cycle. Assets acquired at today’s valuations, already shaped by supply concerns, could see meaningful upside as absorption remains steady and the development pipeline continues to moderate over the next 18 to 24 months.
Conclusion
Ohio’s multifamily surge isn’t a boom waiting to bust. It’s a fundamental rebalancing driven by real economic forces, demographic shifts, and relative value that sophisticated investors can quantify and capture. If you’re ready to explore how Ohio’s multifamily opportunities can enhance your portfolio’s risk-adjusted returns while providing the stable cash flows that anchor long-term wealth building, now is the time to take action. Connect with experienced operators who understand these markets at the ground level, who can identify the specific submarkets and asset classes positioned to outperform, and who have the track record to execute on the opportunity that exists today. The window is open, but windows don’t stay open forever.
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