Reichle Klein Group’s 2024 Year-End Apartment Market Overview

The Toledo, Ohio market rate apartment market performed well generally in 2024 though there are mixed signals in the results of the Reichle Klein Group year-end 2024 survey of the market. The highlights are that rents are up, but so is vacancy. Meanwhile, more new units are coming to market.

The average asking rental rate rose to $1,013 at year-end, the first time it has crossed the $1,000 per month mark. This represents rent growth of 4.7% from the end of 2023, notably higher than the rate of inflation in 2024. Very solid rent growth and, by long term standards of 3% or less annual growth, very impressive growth. But, when compared with the 7.5% average growth over the past five years, it marks a sharp decline in the rate of growth.

To provide some perspective, including that of apartment renters, in December 2019 the average asking rental rate for the Toledo market was $736 per month, a $307 per month increase. The only other property type that has performed better in terms of rent growth in the Toledo market over the same period is industrial space. This, in part, explains the enduring demand for apartment investments in Toledo.

The other side of the coin is vacancies, which have risen. The vacancy rate at the end of 2023 was 3.8% and stands at 5.3% at December 2024. Some submarkets have experienced relatively modest increases over that time frame. Some that have seen significant new construction, like Perrysburg and the Central Business District, have experienced bigger jumps in vacancy. Perrysburg seems to be digesting new inventory better than downtown Toledo. In December 2023 the vacancy rate downtown was 6.4%, nearly twice as high as the market average. In December 2024 the vacancy rate downtown was 8%. The Holland/Maumee submarket, where new unit growth has not occurred at the same rate as either Perrysburg or downtown, has seen its vacancy rate more than double over the course of 2024.

The number of units under construction is up from year-end 2023 even after delivery of three communities in 2024. Perrysburg, where 400 units were under construction at year-end 2024, continues to be the most active submarket for new construction. Looking forward, new developments are proposed for Perrysburg, Maumee, Oregon and downtown.