Cleveland Multifamily Report – Summer 2020

The metro's average rate went up 0.4 percent in three months, while the U.S. figure slid 0.2 percent.
Cleveland rent evolution, click to enlarge

The Cleveland multifamily market has remained relatively stable since the dawn of the COVID-19 pandemic. Due to steady demand amid tempering completions in the past few years, rents have stayed positive. On a trailing three-month basis through May, the average rent in Cleveland rose 0.4 percent to $955, while the national growth rate contracted by 0.2 percent.

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The coronavirus-mandated lockdown has exacerbated the metro’s already decelerating employment growth. In the 12 months ending in March, the professional and business services, leisure and hospitality, and government sectors lost 13,600 jobs. The metro’s unemployment rate hit 23.1 percent in April. Meanwhile, the region’s industrial backbone might play a key role in its rebound from the crisis. Akron-based GOJO Industries, which manufactures hygiene products, purchased a 325,000-square-foot facility in Maple Heights. The company has also hired additional workers for its other Ohio plants to meet the increased demand for hand sanitizers.

Cleveland sales volume and number of properties sold, click to enlarge
Cleveland sales volume and number of properties sold, click to enlarge

After peaking at $314 million last year, transaction volume in Cleveland slowed down significantly. In the first five months of 2020, multifamily deals totaled only 14 million. Deliveries have also been decelerating during the past few years, which is partly why rent growth has endured. Yardi Matrix expects rents to increase moderately by year-end.

Read the full Yardi Matrix report.