- Columbus effective rents rose 0.6% year over year in Q2 to $1,418, nearly double the first-quarter growth rate.
- Occupancy increased to 95.5%, while revenue growth reached 1.2% and Q2 sales volume rose 32% to $365M.
- Colliers forecasts multifamily construction starts will fall 48.8% in 2026 to 4,666 units.
GlobeSt.com reports that Columbus multifamily fundamentals improved in the second quarter as the market began absorbing a recent wave of new supply. Colliers measured effective year-over-year rent growth at 0.6%, bringing average effective rent to $1,418. That was nearly twice the 0.36% growth rate recorded in the first quarter.
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Demand Starts Absorbing New Supply
Other operating measures also moved higher. Occupancy increased from 95.2% to 95.5% year over year. Revenue growth reached 1.2%, up 10 basis points. Colliers said the results suggest demand is beginning to absorb recent deliveries, although rent growth remains below historical norms.
The market entered this period after a long expansion in apartment inventory. The Columbus MSA added roughly 78,144 units from 2010 through 2025. That increase represents 36.55% of the market’s current inventory.
The Details
Colliers expects the development pipeline to slow materially. The brokerage forecasts 4,666 multifamily construction starts in 2026, a 48.8% decline from the prior year. Elevated deliveries are still expected to keep near-term rent growth modest. However, fewer starts should support stronger occupancy and rents after the current wave is absorbed.
Development remains concentrated in several submarkets. Hilliard accounts for 16.54% of the pipeline. Downtown and German Village represent 15.79%, followed by North Columbus at 13.97%.
Investment Activity Holds Up
Apartment investment has remained active despite soft rent growth. Second-quarter sales volume reached $365M, up 32% from a year earlier. Colliers also identified workforce housing as an outperformer, with stronger occupancy and rent growth than the broader market.
Columbus added roughly 78,144 units from 2010 through 2025, expanding supply by 36.55%. That history helps explain why the projected slowdown in starts matters for the next phase of the cycle.
Why It Matters
Columbus is showing the early ingredients of a supply-led rebalancing. Rent growth is positive but still modest, occupancy is edging higher, and construction starts are projected to fall sharply. Those changes could reduce competitive pressure on existing properties once current deliveries lease up.
The combination also matters for investors. Transaction volume is rising even before rent growth has fully normalized, while workforce housing is already outperforming. That suggests buyers are still finding opportunities in a market where operating fundamentals are improving gradually rather than all at once.
What’s Next
Near-term rent growth is likely to remain restrained while elevated deliveries move through the market. Colliers expects stronger occupancy and rent growth after that supply is absorbed. The 48.8% projected decline in 2026 construction starts will be the key pipeline metric to watch.
