Properties Sampled 384 | Units Sampled 83,549 | Submarkets 9
2nd Quarter 2014 Columbus Apartment Trends
- Effective Rent $777
- Occupancy 96.3%
- Annual Job Change 10,200 jobs
- Annual Permits 3,453 units
- Annual Demand 4,313 units
- Annual Completions 4,024 units
2nd Quarter Columbus Performance Highlights
Columbus’s economy was one of the nation’s most stable during the recession, and the metro produced solid growth coming out of the downturn. General economic health propped up occupancy rates and spurred along rent growth levels in the Columbus apartment market. That attracted developers to the metro, causing construction volumes to soar to decade-high numbers. As many of those projects have begun to complete, increased supply volumes have started to impact overall fundamentals. On one hand, the metro has seen strong leasing activity among the new properties, which has helped to keep apartment fundamentals in healthy shape. But the market has seen some backtracking among middle-tier units in recent quarters, due perhaps in part to renters moving up to top-tier product. In 2nd quarter, however, middle- and lower-tier units saw solid occupancy improvement. Meanwhile, most market segments saw modest-to-moderate rent growth. Looking forward, apartment development will likely remain a limiting factor through 2014, particularly among the 2000+ product niche and the handful of high-development submarkets. But the impact shouldn’t be especially severe given Columbus’s demographic and economic tailwinds, which makes the Ohio state capital one of the Midwest’s most attractive apartment markets long term.
What changed this quarter? Eight-year high quarterly demand sent occupancy soaring 1.8 points to a 2nd quarter rate of 96.3%. That quarterly occupancy jump was the second highest nationally behind Toledo. Meanwhile, rent growth measured 1.1% quarter-over-quarter.
Source: MPF Research, www.mpfresearch.com