Columbus Emerges as a Major Player in Apartment Construction

Columbus, Ohio, August 21, 2025

News Summary

Columbus, Ohio, ranks fifth in the nation for apartment construction, driven by rising demand from a growing population. With projections of 1 million more residents in the next two decades, local authorities are approving measures to enhance affordable housing options. Recent developments include a mix of luxury and affordable housing projects, addressing the need for more units. While downtown construction surges, challenges persist regarding costs and availability of low-income housing. The city’s focus remains on meeting the housing demands of its expanding population.

Columbus Emerges as a Leader in Apartment Construction

Columbus, Ohio, has recently made headlines for its rapid growth in apartment construction, now ranking fifth nationally for multifamily building permits issued per capita. This surge in development reflects the city’s increasing population and the urgent demand for new housing.

Construction Boom Analysis

According to recent analysis by a leading research firm, the Columbus metro area issued an impressive 42 building permits per 10,000 residents in the past year. This places Columbus just behind cities such as North Port, Florida; Cape Coral, Florida; Austin, Texas; and Raleigh, North Carolina in the national ranking.

As part of an initiative focused on the region’s expanding housing market, experts note that Central Ohio is projected to see a population increase of 1 million residents over the next two decades. To accommodate this influx, the Building Industry Association of Central Ohio estimates that approximately 14,000 new homes must be constructed annually. However, current construction efforts are only meeting about half of this critical need.

Impact on Housing Market

The construction boom is already influencing the local rental market. As the supply of apartments increases, particularly in the luxury sector, rents that have traditionally been on the rise are beginning to decline. Nevertheless, the city is grappling with a persistent shortage of starter homes and affordable options for lower-income residents, leading to a complex housing crisis.

Local advocates are urging those facing housing difficulties to seek assistance through resource initiatives aimed at alleviating these challenges.

Affordable Housing Efforts

On August 15, significant strides were made when an essential governing body in Columbus approved multiple projects aimed at creating affordable housing for 1,733 residents. These initiatives are funded by an impressive $86.3 million in bonds, enabling the construction of 698 new housing units.

A standout project, known as The Falls, will consist of 220 units and is notable for being the first self-funded effort by the Columbus Metropolitan Housing Authority (CMHA). Additionally, plans are underway for the acquisition of Rosebrook Village in Reynoldsburg at a cost of $26 million. This purchase aims to preserve much-needed affordable housing in the area.

Another exciting development on the horizon is AspireCOLUMBUS, an 82-unit apartment complex set for downtown Columbus, specifically catering to low and middle-income families. However, there are worries about the construction costs for this new project, averaging around $353,658 per unit, a figure that significantly exceeds typical expenses throughout Ohio. Factors driving these costs include compliance with stringent green energy standards and requirements tied to low-income housing tax credits.

Downtown Growth Trends

Columbus has seen a remarkable uptick in apartment construction downtown, with an impressive 8,090 new units added over the last five years—representing 40.4% of all new apartments. This marks an increase from 35.7% prior to the pandemic, showing a shift in urban living trends. However, due to emerging growth patterns in surrounding suburbs, many new residents are opting to settle outside the downtown area, leading to a more decentralized housing market.

In response to the evolving landscape, the CMHA is actively exploring additional mixed-use developments and apartment complexes throughout the city. Despite these efforts, challenges remain, particularly regarding parking availability, with only 70 spaces allocated for the proposed 82 apartments in AspireCOLUMBUS, necessitating additional paid options.

Key Takeaways

• Columbus ranks fifth nationally in apartment construction.
• The city issued 42 permits per 10,000 residents in the last year.
• Annual housing demand is approximately 14,000 new homes; current construction meets about half.
• CMHA approved projects for 1,733 new residents with bonds totaling $86.3 million.
• Costs for new affordable units average $353,658 per unit.

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Additional Resources

• 10TV: Columbus Ranks 5th Nationally in Multifamily Housing Permits
• Dispatch: CMHA’s Recent Plans for Affordable Housing
• NBC4: Columbus Ranks Among Top 10 Cities in Downtown Apartment Construction
• Dispatch: Columbus Housing Authority Sole Funder on 220-Unit Refugee Road Complex
• Wikipedia: Affordable Housing