Last week, a local developer said it was not moving forward with its $600-million project near Capitol Square in downtown Columbus.
The ambitious project would have included a 12-story residential tower at East State and South 3rd streets and another 12-story tower with residences on South 4th Street.
The Edwards Companies told WOSU that today's market conditions show now is not the right time for the project.
Local real estate expert Rob Vogt, principal and partner with Vogt Strategic Insights, said he expects other developers to make similar decisions on housing developments in the downtown area.
"They really realize much as Edwards has that downtown is saturated with product at this point and we do have to kind of take a pause and let some of this product be absorbed that's been built recently," Vogt said.
Vogt said that by comparison, the vacancy rate for apartments outside of downtown Columbus is about three to four percent.
Vogt also said the market conditions for downtown Columbus housing have been soft for a while.
"There is continuing to be demand for downtown housing. The problem I think is we've not seen much in the way of new employment growth downtown, which is one of the primary drivers of demand for downtown apartments," Vogt said.
"And we've seen vacancy rates consistently 10 to 15 percent overall over the past several years as a result of all this new product that has come into downtown," Vogt said.
Vogt also mentioned developments near downtown Columbus, such as Grandview Yard and Grandview Crossing, which have apartments plus bars and restaurants, creating a walkable environment similar to the downtown area plus parking.
A Downtown Columbus Inc. report said the downtown region had 13,500 residents at the end of 2025.
