The number of new apartments available for rent in central Ohio next year is expected to fall by nearly half compared to this year, according to a new report from a real estate consulting firm.

This year there are approximately 9,100 multifamily units expected to become available for rent, but the region is expected to “see a sharp pullback in 2026, with only 5,153 units expected to come online,” according Colliers’ second quarter report on multifamily housing for the Columbus area.

In the second quarter of this year, “market vacancy fell to 3.8 percent, with demand expected to outpace supply as 2026 deliveries are projected to drop to just 56 percent of 2025 levels.”

Though there would be a significant drop from this year, the projected number for next year would be similar to the 5,344 new units that became available in 2024. The report did note that this year’s 9,100 new units would be a record for the region.

“Multifamily construction in Columbus remained robust in (the second quarter) despite elevated construction costs and persistent interest rates … though activity has been heavily front-loaded in the first half,” the report notes.

Colliers expects new construction to stabilize through the end of the year, with demand projected to outstrip deliveries early next year, which could lead to higher rents.

Colliers predicts the vacancy rate will remain at 3.8 percent through this year. The average rent of $1,389 is forecast to grow 2.6 percent.

“Due to development pressures, our team has revised down 2026 and 2028 delivery projections by roughly 300 units and 1,300 units, respectively, with the 2028 adjustment concentrated in high-cost urban projects and large master-planned communities,” the report notes.

Colliers does expect anticipated interest rate cuts by the Federal Reserve to boost construction, which would increase the number of new apartments that will become available in 2027. The consulting firm anticipates 8,638 new units coming online that year.

Currently there are 18,534 units planned and 11,289 units under construction in central Ohio.

Among newer properties, those built since the start of 2024, the occupancy rate averages 54.12 percent with rents averaging $1,722 per month.

The downtown Columbus and German Village market has the highest rent with an average of $1,735 per month, a 1.5 percent increase from a year earlier.

Columbus’ east side saw the biggest average rent increase in the second quarter with rents rising 5.3 percent to $1,298 per month. The area east of Westerville and New Albany, which includes much of Licking County, saw rents increase 4.2 percent to $1,142 per month.

The Hilltop neighborhood saw the biggest drop in average rent, declining 2.7 percent to $1,144 per month.

Olde Town East had the highest vacancy rate in the region in the second quarter at 30.2 percent followed by north Columbus at 20 percent.

Nationally, apartment demand continues to outpace supply, “a trend likely to intensify given ongoing development headwinds,” the report notes.