Market Report
Cleveland Multifamily Market Report
1Q 2026
Steady Hiring Sustains Apartment Demand
as Construction Pullback Fuels Class A Recovery
Multifamily outlook stable despite headwinds. Metro apartment fundamentals improved in 2025, with suburban submarkets standing out for rent growth that ranks among the best in the country. The CBD, meanwhile, began to recover modestly from elevated vacancy levels. This, despite persistent demographic headwinds, as Cleveland led the nation in household consolidation amid weak population growth and net migration. Looking ahead, vacancy should remain tight due to a pullback in 2026 deliveries, particularly in East Cleveland, and recent multifamily permit activity, which ranked among the lowest nationally at the end of last year. This constrained pipeline may help sustain Class A tightening after upper-tier vacancy fell below 2024 levels, dropping by nearly 300 basis points by mid-2025. Moreover, job creation in retail trade and local government — where median salaries are at or below $65,000 — may reinforce Class B and C fundamentals this year. This may be most visible in Medina County, where more retail openings could bolster already solid Class B and C conditions.
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