As Ohio continues to experience economic growth and population shifts, its multifamily housing market remains a focal point for both investors and developers. The demand for rental properties is climbing, driven by a combination of demographic shifts, economic revitalization, and ongoing urban development. Here's a closer look at some of the key trends in Ohio’s housing market that investors need to know in 2025.

1. Population Growth and the Increasing Need for Housing

Ohio’s population is projected to grow by 12% between 2020 and 2030, with a rise in households from 117 million in 2010 to 142 million by 2030. As the state’s population continues to increase, the demand for housing, both multifamily and single-family, is expected to follow suit. According to recent data, over 455 listings in Cleveland are under $300,000, attracting a wide pool of first-time homebuyers. This surge in demand presents a tremendous opportunity for multifamily developers and investors to capitalize on the ongoing migration trends, particularly in high-growth areas like Cleveland, Columbus, and Cincinnati.

2. Affordable Housing in High Demand

Despite the population growth, affordability remains a key issue in Ohio’s housing market. The median monthly payment for a new home is now $800 higher than the average rent, a significant gap that makes renting a more accessible option for many Ohioans. As more people are priced out of the homeownership market, rental properties become increasingly attractive. Additionally, with rent growth stabilizing at long-term averages, multifamily housing is a safe investment in the state’s real estate sector.

3. Multifamily Investment Opportunities in Urban Revitalization

Urban areas in Ohio, particularly in Cleveland, are undergoing a massive transformation. The ongoing investments in infrastructure, healthcare, and tech are creating a fertile ground for multifamily housing developments. According to the Cleveland Federal Reserve, Ohio’s population boom, particularly in cities like Cleveland, is not just attributed to migration, but also to growing economic sectors, including healthcare, tech, and education. This shift is intensifying the demand for rental housing, and multifamily projects, especially those focused on transit-oriented development (TOD), are central to meeting that demand.

With high occupancy levels and a tight inventory that continues to constrain the housing market, Ohio’s multifamily sector remains competitive. The need for urban revitalization projects to address affordable housing is critical, and investors should focus on areas where new developments can fill the gap created by this ongoing demand.

4. Tight Inventory Drives Demand

Ohio’s housing inventory remains historically low, which has been key to maintaining stability in the housing market despite economic challenges. The limited supply of available homes for sale means that rental housing continues to be the go-to solution for many. With a decrease in homeownership rates and more renters seeking opportunities to buy homes, multifamily housing is set to remain a top priority for investors looking to meet the needs of a growing population in urban areas.

5. The Role of Technology and Remote Work in Housing Demand

Remote work and hybrid models are reshaping the demand for housing, with more people seeking affordable living options outside of traditionally expensive cities. As remote work continues to be a fixture in many industries, cities like Cleveland, Columbus, and Akron are seeing a rise in demand for suburban and exurban multifamily housing. These regions offer the best of both worlds - access to urban amenities without the high costs of living typically associated with larger metro areas.

For multifamily developers, these market shifts highlight the opportunity to invest in regions with high demand for flexible living spaces, ideally located near transportation hubs, workspaces, and leisure options.

6. What’s Next for Ohio’s Housing Market?

Looking ahead, Ohio’s multifamily housing market is poised for continued growth. The state’s diverse economy, ongoing urban renewal, and favorable living conditions continue to draw both businesses and residents. With over 599 listings between $350,000–$500,000 in Cleveland alone, investors are presented with significant opportunities for capitalizing on high-quality multifamily housing developments in some of the state’s most vibrant cities.

With the economic health of Ohio continuing to improve and population growth set to drive further housing demand, multifamily housing remains an exciting area of investment. Ohio offers long-term growth potential for those willing to strategically invest in areas undergoing revitalization and those focusing on high-demand developments like TOD.

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Sources:

• RentCafe, "Cities to Watch for Rental Activity in 2025" (https://www.rentcafe.com/blog/rental-market/market-snapshots/cities-to-watch-this-year)
• Cleveland Federal Reserve, "Boomerang Migration Trends and the Impact on Ohio’s Housing Market" (2025)
• U.S. Bureau of Economic Analysis, "GDP Growth Trends in Ohio" (2024)
• National Association of Realtors, "Housing Inventory and Affordability Reports" (2024)

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