Cleveland Multifamily Market
Report

Complications to single-family ownership prolong renting. Average lease terms in Cleveland, particularly for new signings, were higher in the first quarter of 2024 than over the last two years as renters committed to staying put longer. New leases enabled multifamily net absorption in Cleveland to re-enter positive territory during the first quarter of 2024, after being negative in the second half of last year. This willingness to stay put coincides with just 2,100 homes listed for sale in March. Listings have not topped 4,000 in any month since the pandemic began. Single-family home inventory has shown no signs of drastically increasing as owners hold onto lower, pre-2022 mortgage rates. As a result, despite Cleveland having the second-lowest median home price among major U.S. markets, residents are staying in the renter pool longer. This dynamic could also boost demand for Class A units, where vacancy neared 8 percent in the first quarter, as sidelined home buyers opt for luxury apartments instead.