Now Columbus Ranks High Among Best US Markets for Fantastic Apartment Rent Growth

Columbus Continues to See Strong Rent Gains

Columbus, Ohio, has solidified its position as one of the strongest-performing rental markets in the U.S., posting consistent rent growth despite broader economic challenges. As of the second quarter of 2024, apartment rents in Columbus have risen 2.9% over the past year, ranking the city among the top 10 U.S. markets with an inventory of at least 75,000 units, according to CoStar data.

Unlike many larger metros experiencing oversupply and declining rents, Columbus’s balanced supply-demand dynamic continues to support rent increases, particularly in key suburban submarkets.

Limited Completions Keep Vacancy Low

A modest construction pipeline has played a major role in Columbus’s steady rent growth. Over the past 12 months:

• 5,800 new units were completed—a 25% increase compared to the five-year pre-pandemic average.
• In contrast, national apartment completions nearly doubled the pre-pandemic average during the same period.
• New unit absorption in Columbus outpaced supply, with newly occupied units increasing by 19% above the pre-pandemic average.

This controlled supply expansion has helped sustain low vacancy rates, giving landlords pricing power in most submarkets.

Suburban Areas Driving Columbus’s Rent Growth

Some of Columbus’ largest apartment hubs have seen especially strong rent growth, fueled by low vacancies and high demand:

• Northeast Columbus: Rent growth at 4.1%, with vacancy rates 150 basis points below the metro average.
• Bexley-Whitehall: Rent growth at 3.8%, with demand well above pre-pandemic levels.

Both areas have seen 12-month rental demand surpass new supply, allowing landlords to push rents without sacrificing occupancy.

Downtown Columbus Faces Temporary Weakness

Unlike its suburban counterparts, downtown Columbus has struggled to maintain rent growth. The urban core is the only submarket posting negative rent growth, largely due to:

• Elevated vacancy rates were caused by a surge in new apartment completions over the past year.
• Increased competition among landlords, limiting the ability to push rents higher.

However, with the construction pipeline set to slow significantly, even downtown Columbus is projected to see a return to positive rent growth as demand rebounds and new deliveries decline.

Rent Growth in Columbus Expected to Continue

With persistently high interest rates limiting new construction, Columbus is expected to experience continued rent gains as supply tightens over the next 12 to 18 months. As a result, rent growth in Columbus may soon surpass pre-pandemic levels, particularly in high-demand suburban areas.

For investors, Columbus presents a stable rental market with sustained long-term demand, making it a resilient option in an evolving real estate landscape.