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 Ranks Fifth Nationally in Apartment Construction as Population Growth Soars
Columbus, Ohio, has emerged as a significant player in the multifamily housing market, ranking fifth nationally for new apartment construction. Recent data from Redfin indicates that the Columbus metropolitan area issued approximately 42 building permits per 10,000 residents in the past year. This impressive ranking puts Columbus behind cities like North Port and Cape Coral in Florida, Austin in Texas, and Raleigh in North Carolina.
This surge in construction is part of a broader trend highlighted by initiatives focused on central Ohio’s rapid growth, anticipating that the region will see an addition of 1 million residents over the next 20 years. The Building Industry Association of Central Ohio estimates that this population spike will require about 14,000 new homes annually to meet the rising demand.
Carlie Boos, the executive director of the Affordable Housing Alliance of Central Ohio, explains that while the construction boom is seen as a positive development, it presents a “good-news, bad-news situation.” The region is still constructing only around half of the homes that are needed to adequately address demand.
The increased supply of apartments is beginning to affect the luxury rental market, leading to a decrease in previously high rents. However, the ongoing issue of unaffordable housing continues to be a challenge, particularly regarding starter homes for lower-income residents. It is advised that those facing housing challenges reach out to local resources, like Rentful614, for assistance.
On August 15, the Columbus Metropolitan Housing Authority (CMHA) approved several significant projects aimed at providing affordable housing for approximately 1,733 new residents. These projects are funded by $86.3 million in bonds and include the construction of 698 new units.
Among these initiatives is The Falls, a significant 220-unit complex that will be self-funded by CMHA—a first for the authority. Moreover, plans are underway to purchase Rosebrook Village in Reynoldsburg for $26 million, a strategic move to preserve the existing stock of affordable housing. Another CMHA project, AspireCOLUMBUS, is set to develop an 82-unit apartment complex in downtown Columbus primarily aimed at low- and middle-income families.
Over the past five years, Columbus has seen considerable apartment construction in its downtown area, with 8,090 new units built, which corresponds to approximately 40.4% of all new apartments. Before the pandemic, this number was about 35.7%, illustrating a notable increase in downtown living trends.
In response to population growth, many are opting to reside outside the downtown area. As such, the Housing Authority is exploring the possibility of additional mixed-use developments and apartment complexes throughout the city to accommodate this shifting demand.
However, constructing these new projects has raised concerns regarding costs. For instance, the average expense for the new 82-unit project is approximately $353,658 per unit, significantly higher than typical costs in Ohio. Contributing factors to this hike include compliance with green energy standards and specific requirements linked to low-income housing tax credits. Parking for the new complex is also a challenge, with only 70 spaces available for the 82 apartments, although additional paid parking options will be provided.
FAQ
What is driving the demand for new apartments in Columbus?
The rapid population growth in Columbus, projected to increase by 1 million residents over the next 20 years, is a primary driver impacting demand for new housing, with estimates indicating approximately 14,000 new homes will be required annually.
What types of housing are being built in Columbus?
Columbus is seeing a variety of construction efforts, including luxury apartments, affordable housing projects, and mixed-use developments to accommodate both high- and low-income residents.
How is the rental market affected by the increase in apartment supply?
With an increase in apartment supply, particularly in the luxury market, there has been a noted decline in rental prices, making renting more accessible for some residents, although the shortage of affordable housing remains a pressing issue.
Deeper Dive: News & Info About This Topic
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
Author: Construction TX News
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