Q1 2025 MULTIFAMILY MARKET UPDATE
- Colliers | Columbus
- Apr 29
- 2 min read
Written by: Collin Fitzgerald
Collin specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, Retail and Capital Market groups. He is responsible for executing data reports, maintaining a commercial property database, reporting quarterly trends, performing data analysis, and utilizing statistical information to predict future behavior in the market. Keep reading for his take on market trends in the Columbus multifamily sector.
Key Takeaways
Columbus maintained positive year-over-year rent growth amid steady demand and limited new deliveries.
Class A properties outperformed Class B and C in terms of rent stability and occupancy.
The region’s low unemployment rate (4.55%) and consistent GDP growth (2.59%) support continued investment appeal.
Regional Summary
The Columbus multifamily market in Q1 2025 remained resilient despite economic headwinds, characterized by stable rental performance and tempered new supply. Effective rent growth continued on an upward trend, supported by consistent demand in a region with a 4.55% unemployment rate and a 2.59% year-over-year GDP growth. While rent increases varied by submarket and asset class, overall performance reflected cautious optimism from both tenants and investors. The Class A segment, particularly in newer developments, maintained stronger pricing power, whereas older Class B and C properties faced more competitive leasing environments. Despite broader macroeconomic uncertainty, Columbus’ fundamentals remain strong, underpinned by steady job growth and demographic expansion.
Under Construction
Multifamily construction activity in Columbus remained active in Q1 2025, though there are signs of moderation compared to prior years. Columbus is expected to deliver 7,400 units through 2025, a near 40% increase from 2024. However, 2026 is expected to deliver 28% less units and the next three years are expected to average 12% below 2025 deliveries at 6,542 units per year. As Columbus' growth accelerates with major economic development projects starting to deliver, it's anticipated that this will drive rent growth above current expectations. The volume of new starts has slowed slightly, reflecting tighter capital markets and higher interest rates, yet several large-scale projects continue to move forward. Developers are concentrating on strategically located sites near job hubs and transit, with a notable focus on suburban submarkets that offer more affordable land and growing populations.
With Columbus reportedly adding 32,500 residents to the MSA through 2024, multifamily developers are engaged with strategic long-term project planning throughout the MSA despite the current macroeconomic uncertainty. The planned/proposed pipeline is substantial and includes projects that are anticipated to start within the next three years, or are part of large-scale multi-phase projects, which drives the unit count substantially higher. It's anticipated that some projects may never come to fruition and/or that some 'long-shot' proposals may require significant market maturation to start construction. Although construction timelines have lengthened due to supply chain and labor constraints, the ongoing demand for modern, amenity-rich rental housing continues to fuel the pipeline. This cautious yet persistent pace indicates long-term confidence in the Columbus multifamily sector.
Check out the full Q1 2025 Multifamily Trends report here!
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