Builders are on pace this year to construct the most apartments in central Ohio this century, according to new report from real estate consulting firm Marcus & Millichap.

Approximately 7,000 new apartment units are expected to be built this year, the firm notes in its latest report on the Columbus market.

“Deliveries in 2025 will mark a post-2000 record, with inventory growth ranking seventh among major U.S. markets at 2.8 percent. This pace of expansion will roughly align with the metro’s previous two years,” the report notes.

The region’s inventory of multifamily housing is expected to grow by about 3 percent for the third consecutive year before declining in 2026.

“A substantial share of this year’s new supply will cluster downtown. Heightened development here will likely keep vacancy above 7 percent in the urban core, though consistent demand from lifestyle renters should maintain tighter conditions at Class A properties than in Class B. Elsewhere, record completions near the New Albany-Westerville area may also slow local momentum after vacancy across all property classes fell below 5 percent over the year ended in March,” according to the report.

The company cites “strong job growth to start 2025, supported by major investments from Intel and Honda … underscores Columbus’ potential to outperform even if the national economy slows.”

Downtown Columbus and the New Albany-Westerville area each added about 2,000 units in the past year while approximately 1,000 units were completed in Reynoldsburg, though that area is expected to see a decline in apartment construction during the rest of the year.

Rents for apartments in central Ohio, meanwhile, continue to increase.

In the past year the average rent has grown 3.3 percent to $1,359 per month, according to the report.

“Historically tight vacancy should help rent growth remain stable in 2025, lifting the metro’s average effective rate to $1,390 per month by year-end. This will mark a third consecutive year of rent gains around 3 percent,” the report notes.

The region’s vacancy rate has fallen for five consecutive quarters, bringing the area’s rate to 5 percent as of March. That is the lowest vacancy rate in two years.

Downtown Columbus and the Dublin-Hilliard area were the only areas in the region in which vacancy rose last year. The number of new apartments in Dublin is also expected to slow this year.

The southern portion of Franklin County, meanwhile, “could sustain investment momentum following strong vacancy compression and rent growth last year. Limited new supply should keep local vacancy tight, while Anduril Industries’ planned facility near Rickenbacker International Airport enhances the area’s appeal. Grove City is also one of only five U.S. submarkets to achieve rent growth above 5 percent for five consecutive years as of March 2025,” the report notes.