Q2 2026 MULTIFAMILY MARKET UPDATE
Written by: Jake Lord
Jake specializes in research capabilities, providing support for the Colliers Columbus Office, Industrial, and Retail 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 insights on the Columbus multifamily market in Q2 2026.
Key Takeaways
Year-over-year effective rent growth improved to 0.60%, with cautiously optimistic expectations for further acceleration as construction starts decline.
2025 Census data shows Columbus Metro added over 21,000 residents, doubling national growth trends.
Workforce housing continues to outperform discretionary product, with modest rent growth and generally stronger occupancies.
Units under construction or in lease-up total approximately 4.68% of market-rate inventory. About 1.03% of total inventory is actively under construction.
Updated construction data shows expected 2026 starts declining approximately 48.8% from 2025. Hilliard is now the most active development submarket.
Lease-up competition remains elevated, with estimated 7,803 units still moving toward stabilization and concessions likely to remain prevalent among newer properties.
Q2 2026 sales activity strengthened, with quarterly volume reaching approximately $365 million and increasing 32% year-over-year.
Regional Summary
The Columbus multifamily market remains attractive for capital deployment and expansion, although it continues to work through an elevated volume of recently delivered and developing units. Year-over-year effective rent growth increased from 0.36% in Q1 to 0.60% in Q2, occupancy rose from 95.2% to 95.5%, and annual revenue growth improved from 1.1% to 1.2%. These results suggest that demand is beginning to absorb the recent supply wave, but rent growth remains below historical norms. Demographic growth remains one of the market’s strongest long-term advantages. The Columbus MSA added more than 21,000 residents in 2025, bringing its population to approximately 2.24 million and producing a 1.0% growth rate—twice the national rate. International migration contributed 51% of the metro’s population growth, while natural growth accounted for another 35%.Labor-market conditions also strengthened by the end of the quarter. The Columbus MSA unemployment rate measured 3.3% in June, down from 4.5% one year earlier and representing the largest decline among major U.S. metropolitan areas. Employment growth remained uneven, with strong gains in mining, logging and construction offset by declines in professional and business services and education and health services. Property performance continues to vary considerably by vintage. Properties built since 2016 recorded 0.4% annual asking-rent growth and 17.0% vacancy, compared with 1.1% rent growth and 6.3% vacancy for Class B properties. Class C properties recorded 1.2% growth and 9.3% vacancy, supporting the continued resilience of workforce-oriented housing relative to newer discretionary product. Near-term supply remains the principal constraint, with an estimated 7,803 units in lease-up and another 2,206 units actively under construction. Combined, these units represent 4.68% of market-rate inventory. However, construction starts are projected to decline 48.8% from 2025 to 2026, providing a foundation for stronger occupancy and rent growth once the current lease-up inventory is absorbed.
Under Construction
The Columbus MSA remains an active market-rate multifamily development market, delivering approximately 78,144 units from 2010 through 2025, or 36.55% of its current 213,773-unit inventory. This expansion continued despite elevated interest rates and tighter construction financing. The market delivered approximately 8,950 units in 2025 and is expected to deliver another 9,753 units during 2026. However, construction starts are projected to fall from 9,119 units in 2025 to 4,666 units in 2026, representing a 48.8% decline and signaling fewer deliveries after the current pipeline is completed. Approximately 2,206 units are actively under construction, while another 7,803 units are in lease-up. Together, these 10,009 units represent 4.68% of market-rate inventory. The lease-up inventory carries an estimated weighted vacancy rate of 64.4%, indicating that significant absorption is still needed before operating conditions normalize. Development remains concentrated in several growth corridors. Hilliard accounts for 16.54% of the pipeline, followed by Downtown and German Village at 15.79% and North Columbus at 13.97%. Although elevated deliveries will likely keep near-term rent growth modest, the decline in construction starts should support stronger occupancy and rent growth once the current supply is absorbed.
Check out the full Q2 2026 Multifamily Trends report here!
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