IRR-Cleveland Mid-Year Viewpoint 2015 Local Market Report - Multifamily
Cleveland’s multifamily market has thrived over the past few years with apartment vacancy in Cleveland at the ten year low averaging 2.9%. Factors increasing demand include a improving job market, affordability of rents, and the appeal of homeownership has declined making rental housing more favorable. New apartment development within the CBD and westside neighborhoods of Ohio City and Tremont has spurred, where an array of mixed-use conversion projects and new construction projects are currently underway.
Some notable projects in the CBD that have opened in late 2014/early 2015 include “The Nine” and “Residences at 1717”, which both projects being substantially pre-leased. Developers are continuing to work at keeping up with demand for housing in Downtown Cleveland. The market has continued to absorb new units as quickly as they become available with an additional 2,482 units planned to open within the next 18 months.
While the suburban market areas have been lagging with new apartment construction due to the appeal of urban living, a few new projects have been delivered in Beachwood including “The Vue” and "Four Seasons 4." Other suburban projects include “Chagrin River Walk” in Willoughby and "Brighton Chase" in Rocky River. These new projects are in high demand due to the lack of new modern inventory in the market areas.
Investors have been targeting multifamily properties in Cleveland in search of long-term safer investments. Well-located and modern larger class A projects are in high demand however some more risk oriented investors are also looking for deals on older properties in need of capital and repositioning. Overall demand for multi-family housing in the Cleveland market should remain strong, resulting in steady absorption, low vacancy and moderately increasing rental rates.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.