Cincinnati Multifamily Market Report
Demand Surge Prompts Dramatic Rent Reversal
As Downtown Makes Up Lost Ground
Tightening vacancy contributes to rising rents downtown. Cincinnati has welcomed new households consistently over the past decade. The metro continued to see elevated in-net migration through the pandemic, and is predicted to welcome 6,500 new residents in 2022. Household expansion, expected to be up 0.9 percent this year matching 2021’s two-decade high, means more residents are looking for apartments while vacancy is tight, producing strong rent growth. Given recent price hikes in the housing market and a preference toward the flexibility of apartments, the renter pool remains strong. As demographic trends drive demand across all areas of the metro, Central Cincinnati, in particular, saw a pronounced drop in vacancy over the past year, as area offices reopen and more activity returns to the core. Developers focus on downtown. This year, about 40 percent of metrowide completions are expected to come online in Central Cincinnati, despite the submarket only accounting for 8 percent of total stock. Record deliveries here may ease the pace of rent gains, which have sprung back following sharp declines in 2020 and early 2021. Rates grew more than 20 percent year-over-year in the first quarter of this year.