Columbus Emerges as a Major Player in Apartment Construction

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 High in Apartment Construction Amid Population Growth

Columbus, Ohio, has recently gained recognition for its significant surge in new apartment construction, now ranking fifth nationally for multifamily building permits issued per capita. According to a report by Redfin, the Columbus metropolitan area has issued an impressive 42 building permits for every 10,000 residents over the past year.

The cities leading the pack in apartment construction include North Port and Cape Coral in Florida, as well as Austin, Texas, and Raleigh, North Carolina. This rapid growth is part of a broader trend that highlights the increasing demand for housing in central Ohio, which is supported by the “Boomtown” initiative focused on the region’s expansion.

Projected Population Growth and Housing Needs

Over the next two decades, central Ohio is anticipated to see a population increase of 1 million residents, which in turn will necessitate the construction of approximately 14,000 new homes annually, according to the Building Industry Association of Central Ohio. This demand calls for an urgent response to the housing situation, especially as the area continues to develop rapidly.

The current construction boom is viewed as a mixed bag. Although it signifies progress, it is critical to note that Columbus is only delivering about half of the housing required to meet the growing demand. The surge in apartment supply has begun to influence the luxury rental market, leading some areas to see a decrease in previously soaring rents.

Challenges in the Housing Market

Despite the positive developments in the construction sector, there remains a pronounced deficiency in starter homes and affordable housing options for lower-income residents. This issue underscores the importance of finding creative solutions to address the ongoing housing challenges faced by many individuals and families in the region.

For those grappling with housing difficulties, resources such as Rentful614’s website offer guidance and support aimed at tackling these significant challenges.

New Affordable Housing Initiatives

On August 15, the Columbus Metropolitan Housing Authority (CMHA) took crucial steps to enhance affordable housing availability by approving several projects that aim to provide housing for 1,733 new residents. These initiatives are funded by an investment of $86.3 million in bonds and include the construction of 698 new units.

A standout project, known as The Falls, will feature 220 units and marks a significant milestone as it will be self-funded by the CMHA for the first time. Additionally, plans are underway to purchase Rosebrook Village in Reynoldsburg for $26 million to maintain affordable housing options in the community.

Another project, AspireCOLUMBUS, is set to develop an 82-unit apartment complex in downtown Columbus specifically designed for low- and middle-income families.

Downtown and Surrounding Areas: Shifts in Living Preferences

Columbus has witnessed a notable boost in downtown apartment construction, with approximately 8,090 new units added in the past five years, accounting for 40.4% of new apartments constructed. This figure marked a rise from the 35.7% of apartments built downtown prior to the pandemic, indicating a shift in living preferences.

A growing number of residents, influenced by population trends in neighboring regions, are opting to reside outside of downtown Columbus, prompting the Housing Authority to explore mixed-use developments and additional apartment complexes across the city.

Cost Considerations and Parking Challenges

The rising costs associated with constructing new developments, such as the 82-unit project, have raised eyebrows, with the average price per unit reaching approximately $353,658, which is significantly above typical construction costs in Ohio. Factors contributing to this increase include adherence to green energy standards and specific requirements associated with low-income housing tax credits.

Furthermore, the issue of parking is on the horizon as only 70 spaces will be allocated for the new 82 apartments, necessitating the availability of additional paid parking options.

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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