Market Report
Cleveland Multifamily Market Report
2025 Investment Forecast
New Projects Aim to Boost Downtown Appeal;
Investors Capitalize on High Yields and Low Entry Costs
Strong suburban performance in Cleveland may be joined by downtown resurgence. Aided by limited new supply, six of Cleveland’s nine suburban submarkets saw vacancies below 5 percent heading into 2025. Availability is higher in the closer-in submarkets, however, as the gap between local and downtown rents has narrowed. Pressure in these submarkets near the CBD has led to an overall suburban vacancy rate that was 100 basis points above the ten-year average of 4.6 percent exiting last year. Downtown Cleveland’s vacancy rate neared 10 percent at the end of 2024, but major projects like Sherwin-Williams’ new headquarters and the $3.5 billion riverfront development will likely boost long-term downtown housing demand. Development may have the opposite effect on the adjacent East Cleveland submarket. As the most active multifamily construction area outside of downtown — with about 700 units delivering in 2025, or one-third of market additions — the submarket entered this year with one of the highest local vacancy rates.
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