Cleveland Multifamily Market Report
2024 Investment Forecast
Competition for Leases Still Tight in the Suburbs;
Investors Drawn by Cleveland’s Higher Yields
Close-in suburbs benefit from limited pipelines and lower rents. An elevated pace of rent growth in Cleveland — which extended through 2023 — has begun to direct renter demand to lower-cost submarkets. While the overall mean effective rent will decrease in 2024, it will not be enough to offset the growing cost disparity between suburban and downtown rents. Close-in neighborhoods, in particular, have appealed to renters looking to lower their mean monthly payment while staying near downtown. Westlake-North Olmsted-Lorain County is one such example. The area entered this year with a vacancy rate approximately 200 basis points below its long-term average. Limited proposed or underway projects here will likely keep this rate as one of the lowest in Cleveland. Conversely, at the end of 2023, vacancy in Central Cleveland was rapidly approaching 10 percent. Despite recent challenges, projects like Sherwin-Williams’ new global headquarters, which is slated to open in 2025, could fuel long-term demand for downtown housing.