Cleveland Multifamily Market Report

Complications to single-family ownership prolong renting. Average lease terms in Cleveland, particularly for new signings, were higher in the first quarter of 2024 than over the last two years as renters committed to staying put longer. This willingness coincides with just 2,100 homes listed for sale in March. Listings have not topped 4,000 in any month since the pandemic began. Single-family home inventory has shown no signs of drastically increasing as owners hold onto lower, pre-2022 mortgage rates. As a result, despite Cleveland having the second-lowest median home price among major U.S. markets, residents are staying in the renter pool longer. This dynamic, paired with demand for the sub-$950 per month rents offered by Class C properties, enabled multifamily net absorption in Cleveland to re-enter positive territory during the first quarter of 2024, after being negative in the second half of last year.