Cleveland’s multifamily market experienced mixed results in 2023 through August. Rents were up 0.3 percent on a trailing three-month basis, to $1,156, lagging the U.S. average of $1,728. Rate development moderated, after remaining 30 to 40 basis points above the national average since April 2023, with June recording the best performance, up 0.8 percent on a three-month basis.
Year-over-year, unemployment in Cleveland clocked in at 3.5 percent in July, after reaching 4.4 percent in June, according to preliminary data from the Bureau of Labor Statistics. The national figure was also 3.5 percent. Over the 12 months ending in June, Cleveland added 14,700 jobs, a 1.1 percent expansion and 165 basis points behind the U.S. average. Employment growth showed signs of recovery after decreasing during the spring months. Gains were led by the education and health services sector, which added 11,400 jobs, up 4.6 percent year-over-year through May, followed by other services with 3,600 jobs, up 7.1 percent, and mining, logging and construction with a 4.2 percent year-over-year growth rate, or 2,400 new positions.
Cleveland had 4,150 units under construction as of August. Deliveries totaled 947 units, representing 0.6 percent of total stock, 60 basis points below the national average. Multifamily investment interest decreased, with transaction volume through August at $73 million and no sales recorded within the Lifestyle segment.
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