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Supply Additions Warranted as In-Migration Rises;
New Units Create Near-Term Growing Pains
Class A rentals face record-high supply pressure. Among major Midwest markets, Columbus expects the largest number of new residents through in-migration this year as over 15,700 people move into the metro on net. Consistent population growth should boost rental demand in the long-run; however, a substantial construction pipeline will create some headwinds in the coming quarters. Completions in 2023 will reach their highest level since at least 2000, and another 9,200 units are underway with delivery dates stretching into 2025. Metro vacancy, particularly in the Class A segment, may rise as a result of rapid stock expansion and new competition. As company developments with high-paying positions come to completion — such as Intel’s semiconductor factories and data centers for Microsoft and Google — top-tier property fundamentals will likely stabilize.