Cleveland Multifamily Report – October 2022
While other fundamentals dampened, transactions topped last year's volume.
Cleveland’s multifamily market has experienced mixed results in 2022. Rents were up by 0.9 percent on a trailing three-month (T3) basis through August—to $1,131, lagging the U.S. average of $1,718. Rate development slowed nationwide, but Cleveland maintained 30 basis points above the national T3 figure. Year-over-year, however, the metro’s rents increased by 9.5 percent, below the national 10.9 percent rate.
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Unemployment clocked in at 4.7 percent as of August, down 130 basis points from January, according to preliminary data from the Bureau of Labor Statistics. Over the 12 months ending in June, Cleveland added 35,200 jobs—a 2.4 percent expansion—behind the U.S. rate by 230 basis points. Gains were led by leisure and hospitality (up 17,300 jobs, or 14.0 percent), followed by other services (up 4,900 jobs, or 9.9 percent) and manufacturing (3,600 jobs, or 2.4 percent). Cleveland’s mayor announced new economic initiatives that will rely on the city’s remaining $310 million in ARPA funding. The first batch of spending will use 33 percent of these funds across 15 key proposals, of which $50 million will be used for housing initiatives.
Cleveland had 3,898 units under construction as of August. Deliveries totaled 856 units, representing 0.5 percent of total stock and 80 basis points below the national average. Multifamily investment amped up, with transaction volume through August at $369 million, just shy of 2021’s total investment volume.