Cincinnati Multifamily Market Report
Households Increasingly Lean Toward Renting;
Elevated Construction Reflects Tight Conditions
Home purchase barriers aid apartment demand. In 2020, Cincinnati was named by some publications as one of America's hottest housing markets. Now, rising mortgage rates and single-family home prices have many residents reconsidering the value proposition of homeownership. In the first half of this year, the affordability gap — the difference between a mean monthly rent payment and a mortgage obligation on a median priced home — nearly doubled to $785. This drastic difference in costs, paired with the flexibility and amenities that apartments provide, is driving demand for rentals. In the past 12 months ended in June, more than 3,900 units were absorbed, surpassing the total of the prior eight quarters. While apartment vacancy will end the year slightly higher than the 2021 year-end rate, it will still remain one of the tightest among major U.S. metros.