By Yanitza Brongers-Marrero, Moody Nolan
Rent growth in cities across the Midwest is booming, encouraging developers and municipalities alike to ramp up investment in the region. As interest shifts away from coastal markets that became overbuilt during the pandemic, the Midwest’s stability and growth potential are coming into sharper focus.
Columbus, Ohio, is leading the charge with adding 30,348 new residents in the past year, a 1.4 percent growth rate that outpaces both the national (1 percent) and Midwest (0.6 percent) averages, according to the latest U.S. Census estimates. Projections suggest the region could gain another million residents by 2050, underscoring its long-term demand for housing.
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Chicago, meanwhile, remains the Midwest’s economic engine. The metro area ranks third in the U.S. by GDP at $860 billion and saw a 4.6 percent year-over-year rent growth in June, according to CoStar. The city also added 22,164 residents from mid-2023 to mid-2024, marking the seventh-largest population gain in the U.S.
Together, these cities, along with Minneapolis, are shaping the next chapter of multifamily investment and housing innovation in the Midwest.
What are the major influences you’re seeing fuel the growth in demand for multifamily projects in the Midwest?
Being five years out from the onset of the pandemic, which prompted many people to leave urban centers for more remote or coastal lifestyles, we’re now seeing that pendulum swing back. Cities that saw major population spikes during the pandemic are starting to cool due to a mix of overbuilding, affordability concerns and return-to-office mandates.
Meanwhile, Midwest cities are benefiting from renewed interest, thanks to their cost, stability, quality of life, affordability and accessibility. Significant economic development and less risk for extreme weather also make this region more attractive.
What opportunities or challenges does this shift present?
This resurgence isn’t without challenges. Rising interest rates, elevated construction costs and a shortage of skilled labor have increased the cost of development. As a result, delivering high-quality affordable housing and market-rate housing requires more innovation and stronger collaboration between designers, developers and municipalities. We’re also seeing that municipalities across the Midwest are having to revisit zoning codes, parking minimums and density requirements to support this demand. In many cities, unlocking development potential depends on proactive planning departments and long-term partnerships.
Is the bulk of development coming from ground-up projects, or is adaptive reuse/renovation playing a significant role as well?
Both ground-up projects and adaptive reuse/renovation remain strong in the market. While new builds still lead the way for larger multifamily projects, adaptive reuse is gaining momentum, especially office-to-residential conversions in legacy downtowns with aging commercial real estate. The benefits are clear: sustainability, cost reduction and preservation of architectural character.
With the increase in housing development, what role does design play in preserving the architectural language and integrity of these areas?
Design has a vital role in ensuring that growth doesn’t erase character. The Midwest has a rich architectural heritage, and development should seek to build upon it rather than replace it.
In Columbus, our work on Topiary Park Crossing aimed to do exactly that. Located downtown near historic homes and cultural landmarks, the project integrates modern workforce housing into its setting by responding to local massing, materiality and street rhythm.
How do you foresee the upward trajectory of the market impacting community engagement and revitalization?
The increased investment in multifamily development presents a unique opportunity to provide housing that truly enriches the lives in a community through thoughtful design that incorporates local context and insight from current residents. By understanding what a community needs, not just implementing one-size-fits-all solutions, designers can create impactful developments that not only provide shelter, but the resources and support for residents to flourish.
One example is Poindexter Village in Columbus, a redevelopment of a historic public housing site into a mixed-income, mixed-use community. It includes 335 units across townhome, garden and apartment buildings, as well as live-work spaces, a new intergenerational center and partnerships with service providers that help residents access employment, childcare and health services.
Strategically placing housing in areas with existing community assets and services helps create healthier environments where residents can achieve their full potential. This approach is mirrored in Cincinnati’s Avondale Town Center, a mixed-use, mixed-income redevelopment with neighborhood retail and services — all designed to support long-term community wellness.
How can Midwest cities balance the increase in demand while prioritizing affordable and workforce housing?
That balance is critical and urgent. For example, much of Chicago’s recent development has focused on luxury Class A housing, particularly in neighborhoods like the Loop, West Loop and River North. According to CoStar, the city saw a 4.2 percent year-over-year rent increase in May 2025, placing it third nationally behind Brookline, Massachusetts, and Hollywood, Florida. This upward trend is echoed in Zillow’s June 2025 data, which shows asking rents reaching $2,354, a 5.9 percent annual increase.
These figures reinforce the need for more balanced development strategies, including expanding market-rate and mixed-income housing options to stabilize rent pressures and meet the needs of a broader cross-section of residents.
This momentum reflects a broader regional trend and reinforces the need to diversify housing options across the Midwest. Developers should prioritize market-rate and mixed-income projects that help stabilize renter costs and reflect the full spectrum of urban housing needs, and not just the luxury tier.
In Chicago, Moody Nolan served as design architect for 43 Green, a transit-oriented, mixed-income development, and as architect of record for one of the residential buildings within the larger Roosevelt Square redevelopment. Both projects demonstrate how community-focused design and investment can better serve diverse populations.
Public investment in affordable housing yields both financial and social returns — from job creation and tax revenue to improved quality of life and reduced inequality.
We’re also seeing greater demand for seniors and multigenerational housing that supports aging in place and family caregiving. We have completed and worked on several permanent supportive housing projects across the Midwest, including Swope Village in Kansas City for residents exiting homelessness, and Scholars House in Columbus for youth aging out of foster care and pursuing higher education.
How are municipalities shaping the future of multifamily development in the Midwest?
Municipalities are increasingly active players in driving multifamily growth, whether through policy reform, public funding, tax incentives or partnerships. Across the Midwest, cities are reevaluating zoning, tax credits and infrastructure investment to support more equitable development. In our experience, housing is a powerful economic driver: it attracts employers, supports workforce growth and ultimately enhances the overall quality of life.
Looking toward the future, what does this demand indicate for the market long-term?
As development costs rise, we expect a shift toward smaller units with shared amenities which need to be balanced by walkable, service-rich locations near transit, schools and healthcare. That tradeoff, paired with strong community connections, will appeal to the next generation of renters seeking purpose and belonging.
Projects like Columbus Commons, Topiary Park Crossing, The Banks and River & Rich were all designed to strengthen walkability and neighborhood connectivity.
Demand is likely to stay strong, especially as Gen Z and millennials continue to favor renting over homeownership due to affordability and lifestyle flexibility.
Today, multifamily is no longer a short-term solution. It’s becoming a long-term choice.
As architects, our role is to guide that growth with empathy, equity and insight rooted in community input — helping turn the Midwest’s momentum into lasting, inclusive progress.
Yanitza Brongers-Marrero is housing practice leader at architectural firm Moody Nolan. This article originally appeared in the August 2025 issue of Heartland Real Estate Business magazine.