The multifamily sector remains resilient across the Midwest. It’s no different in the Cleveland market, where tenants continue to hunt for new apartment units in both the suburbs and downtown.
We spoke with Nick Soeder, president and principal broker of Cleveland’s Adams Lynch Associates, about the enduring strength of the region’s multifamily sector. Here is some of what he had to say.
How strong is the demand from renters for multifamily units in the Cleveland market?
Nick Soeder: We are seeing strong demand from renters still. Our vacancy rates might be a little above the national average. But this is because of so many apartment units coming online, especially in downtown Cleveland and in neighborhoods such as University Circle and Ohio City. All these new units have caused our multifamily vacancy rate to spike a bit over 8%.
Even with that higher vacancy rate, we are seeing increased monthly multifamily rents. Cleveland is one of the strongest markets for rent growth in the Midwest.
Are you seeing greater demand from renters in different parts of the market?
Soeder: The vacancy rate is lower in the suburbs, around 5%, give or take. The downtown apartment buildings and CBD apartments are higher-rent properties with more bells and whistles. In the suburbs, you can find space at a lower rent. You might also get more size. And you don’t have to add the cost of parking downtown, which can add another $100 or $200 a month to your cost. In the suburbs, you can just pull into a lot and walk up to your unit. That might account a bit for why we are seeing lower vacancies in the suburbs.
Are you still seeing a steady addition of new apartment units in the market?
Soeder: In 2025 there are more new apartment units coming online than in 2024. The number of new units scheduled for 2026 is a little lower. After that, we’ll see where it goes. There are still a lot of new units planned, with many developers targeting the suburban areas such as Lakewood and Middleburg Heights. There are several multifamily projects planned for Cleveland Heights, too. We are seeing a lot of planned activity for the suburban markets.
That’s not surprising. The City of Cleveland has had a population loss during the last 10 years. But when you look at greater Cleveland, areas like Lorain County and Medina County, you see population growth. You might start to see more development in those areas because of this. There is also more land available in those areas. It can often be easier to start a new development from the ground up than it is to convert an old office building and build in the city limits.
Overall, we are in a good place when it comes to multifamily demand. Developers are still interested in this sector.
I’ve read that Cleveland is leading the Midwest when it comes to the number of conversions from office and other outdated properties to multifamily. What impact is that having on the market?
Soeder: We have seen quite a few conversions to multifamily. We lost a lot of office workers over the years. What do you do with these large high-rise properties in the CBD? With the work-from-home folks and companies not needing as much office space, office conversions have become more popular. We have seen several downtown.
It can be challenging, though. I’m not a developer. But it’s certainly not as easy as having a piece of land and building from the ground up. It must be a developer that is really interested in building downtown or in the CBD to take on a project like that. It is not an easy process. Some of the downtown conversions have worked out well. But there are hurdles to overcome. Those buildings do have more character, though. There are pros and cons.
Are more people interested in living in downtown Cleveland?
Soeder: The downtown population has certainly increased over the last few years from where it was 10 years ago. We will see what happens. It’d be good to see better occupancy in buildings in the CBD and downtown. But it is a tremendous difference from where it was a decade ago. Now you see people out walking their dogs and going grocery shopping. There is activity even when there is not a game or concert. The demand for downtown multifamily is there.
Is demand strong enough to support the number of new multifamily units coming to the Cleveland market?
Soeder: It seems to be. People smarter than me are building these. They wouldn’t do it if they didn’t see the possibility. They wouldn’t be putting shovels in the ground if they didn’t think these developments would be successful.
