How is The Columbus Ohio Real Estate Market 2019?
The Columbus Ohio real estate market remains hot for investors and buyers alike in 2019. The real estate statistics in Columbus show us that while the construction is increasing, inventory is still scarce because of demand in those cities. This is causing the price increase of Columbus real estate.
Columbus, Ohio is the 14th largest city in the U.S. It is home to almost nine hundred thousand people. Forbes reported in 2018 that Columbus is a rare Midwest success story, a “Rust Belt” city that has truly transformed itself and has begun growing again.
It is the only large northern city to grow by more than 10% between 2010 and 2018. Compare this to many northern cities continuing to hemorrhage people, whether they are moving to the suburbs or the south.
This makes the Columbus housing market much healthier than Cleveland, Detroit and smaller Ohio cities from which it has drawn population. The Columbus Ohio real estate market is actually bigger than many think. Take the suburbs into account, and the Columbus housing market encompasses around two million people.
It is the second largest metro area in the state. We shall give you some Columbus Ohio real estate statistics, such as median home prices and available inventory, which will help you understand the way the local market moves in this region.
Columbus Ohio Real Estate Market Forecasts 2019 & 2020
We get to find that on Zillow, the median home value in Columbus is $157,500. Columbus home values have gone up 7.6% over the past year and the Columbus Ohio real estate market prediction is they will rise 4.0% within the next year. The median list price per square foot in Columbus is $135, which is lower than the Columbus Metro average of $138.
The median price of homes currently listed in Columbus is $194,900 while the median price of homes that sold is $159,200. The median rent price in Columbus is $1,295, which is lower than the Columbus Metro median of $1,350.
Here is the Columbus, OH real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 4.0% till July 2020.
Columbus Ohio Housing Market Forecast 2019 – 2021
The Columbus Ohio housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Columbus, Ohio is 87%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Columbus, OH is 87% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Columbus, Ohio Real Estate Market Forecast.
Columbus Ohio Real Estate Market Trends
Columbus Ohio real estate market trends indicate an increase of $4,800 (3%) in median home sales and and a -8% drop in median rent per month over the past year. The average price per square foot for this same period rose to $120, up from $117.
Trulia has 2,314 resale and new homes for sale in Columbus, OH, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median rent per month for apartments in Columbus for Dec 9 to Jan 9 was $1,100. Average price per square foot for Columbus was $120, an increase of 3% compared to the same period last year.
The median sales price for homes in Columbus for Oct 10 to Jan 9 was $150,000 based on 1,880 home sales. At present, the median sales price in Columbus is $175,700. Homes are selling for about $136/sqft.
As per the real estate company named Redfin, the Columbus housing market is very competitive. Homes in Columbus receive 1 offers on average and sell in around 40 days. The average sale price of a home in Columbus was $195K last month, up 8.3% since last year.
The average sale price per square foot in Columbus is $123, up 7.0% since last year. Homes typically receive 1 offer. Homes for sale in the Columbus housing market sell for around list price and go pending in around 40 days. Hot homes in Columbus, Ohio can sell for about 3% above list price and go pending in around 28 days.
There are 2,955 homes for sale in Columbus, OH on Realtor.com. Additionally, there are 1,308 Columbus rentals for sale. In July 2019 the Columbus housing market was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.
According to Realtor.com’s real estate data, in July 2019, the median list price of homes in Columbus, OH was $204.9K, trending up 10.2% year-over-year. The median listing price per square foot was $126. The median sale price was $223.4K. On average, homes in Columbus, OH sell after 48 days on the market. The trend for median days on market in Columbus, OH has gone up since last month, and slightly up since last year.
On Movoto.com, the median list price in Columbus is $224,900. The median list price in Columbus was less than 1% change from August to September. Columbus’s home resale inventories is 1,379, which increased 3 percent since August 2019. The median list price per square foot in Columbus is $137. August 2019 was $139. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in September.
Columbus Ohio Single Family And Multi-Family Homes
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units. As per the real estate company called Neigborhoodscout.com, the median house price in Columbus, OH is $163,981, which indicates that home prices in Columbus are near the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Columbus, accounting for 46.43% of the city’s housing units. Small one or two bedroom single-family detached homes are the most common housing units in Columbus, Ohio.
Columbus has a mixture of owner-occupied and renter-occupied housing. Other types of housing that are prevalent in Columbus include large apartment complexes or high rise apartments, duplexes, homes converted to apartments and a few row houses.
Currently, there are 1,242 single family homes for sale in Columbus, OH on Zillow. Additionally, there are 662 single family homes for rent in Columbus, OH. Under potential listings, there are about 99 Foreclosed and 393 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Columbus, OH Foreclosures And Bank Owned Homes 2019
As per the Columbus foreclosure data by Zillow, in Columbus, 4.5 homes are foreclosed (per 10,000). This is greater than the Columbus Metro value of 2.8 and also greater than the national value of 1.2. The percent of delinquent mortgages in Columbus is 1.2%, which is higher than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Columbus homeowners underwater on their mortgage is 8.0%, which is higher than Columbus Metro at 6.2%.
|Foreclosures in Columbus||845|
|Homes for Sale in Columbus||1,789 (RealtyTrac)|
|Median List Price||$195,000 (2% ⇓ vs Jul 2018)|
There are currently 845 properties in Columbus, OH that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,789. In August 2019, the number of properties that received a foreclosure filing in Columbus, OH was 34% higher than the previous month and 38% higher than the same time last year.
Best Neighborhoods to Invest in Columbus Ohio Rentals
If you are looking to invest in the Columbus Ohio rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Columbus Ohio rental real estate and you should be able flip it for a lump sum profit.
When looking to invest in Columbus Ohio real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Columbus investment property should be low. The neighborhoods in Columbus must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 193 elementary schools, 94 middle schools, 82 high schools and 63 private & charter schools. There are 192 neighborhoods in Columbus.
Some of the best neighborhoods in or around Columbus, Ohio are Upper Arlington, North Linden and Grandview Heights. Upper Arlington has a median listing price of $450K, making it the most expensive neighborhood. South Linden is the most affordable neighborhood in Columbus with a median listing price of $59K.
Here are the best neighborhoods to invest in Columbus Ohio rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).
N 4th St / E 11Th Ave
N 4th St / E 2nd Ave
Summit St / E 11Th Ave
W Spring St / Neil Ave
City Center / Franklin U
Neil Ave / W 2nd Ave
N High St / W Lane Ave
Bryden Rd / S Nelson Rd
Bryden Rd / S Champion Ave
King Ave / Hunter Ave
Is Columbus Ohio a Good Place to Invest in Real Estate?
Now that you know where Columbus is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should You Invest in Columbus Ohio Rental Real Estate?
Many real estate investors have asked themselves if buying a rental property in Columbus is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Columbus Ohio housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Columbus but we have collected ten evidence based positive things for those who are keen to invest in the Columbus Ohio rentals in 2019.
Investing in Columbus rentals will fetch you good returns in the long term as the home prices in Columbus have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Columbus real estate market which can help investors who are keen to buy an investment property in this city.
1. Columbus Ohio Real Estate Is Appreciating for Many Reasons
A city that’s losing people is typically going to see property values decline, though desirable neighborhoods may see steady or slight increases in valuation. The Columbus Ohio housing market is seeing steady growth due to slow population growth. Between 2013 and 2018, property values have increased. In 2017, they increased a whopping 9.2%.
Housing prices in the Columbus Ohio real estate market are expected to increase another 7% in 2019. This is partially due to the demand for older, renovated homes in established, walkable neighborhoods. The limited supply of family-friendly homes in these areas is driving up their prices.
2. Real Estate Investor Friendly Policies Make It a Great Opportunity
One interesting factor driving property valuations in the Columbus Ohio real estate market is city tax abatements in downtown neighborhoods. The city is encouraging people to buy up properties and renovate them, whether to rent out or live in themselves.
Another point in favor of Columbus is that they didn’t crack down on private rentals like AirBnB. For example, they decided in 2018 not to limit the number of days people could rent their homes out on AirBnB and similar sites.
3. It is Landlord Friendly
Ohio is rather landlord friendly, in the same category as Idaho and North Carolina. That makes it much more landlord friendly than neighboring Midwestern states and far better than Pennsylvania. There are no laws regarding pets, payment grace periods or re-keying.
Interest owed on deposits is modest. Rental agreements are recommended but not required for short leases. There is no statutory limit on late fees but they must be “reasonable”.
4. The Economy Is Healthy
We’ve already mentioned that Columbus, Ohio is considered a “Rust Belt” city that’s unique for rebound. It enjoys unemployment rates around 4%, but this is phenomenal compared to the surrounding area. The US saw incomes grow 22% between 2010 and 2016.
Columbus metro area incomes grew roughly 25%. The city’s economy is healthy enough to retain many young people and attract some coming here to work, but it isn’t so hot that the bubble may burst.
Most of the Columbus housing market growth has been younger people moving there from Ohio. This includes but isn’t limited to those who came for school but decided to stay.
5. The Sizable Student Market Is a Boon to Investors
Columbus, Ohio is the state capital. This means there are several universities in the city. Franklin University hosts nearly five thousand students. Capital University has about three thousand students. Ohio Dominican University is home to nearly two thousand students.
There are nearly 40 colleges within fifty miles of Columbus. And the sheer variety of colleges in the area means that investors can rent to the large population of students in the Columbus Ohio real estate market without worrying about their property values rising and falling based on the popularity of a flagship school.
6. The Demographic Momentum Will Keep the Market Strong
Between kids attracted to the Columbus Ohio housing market for school and work and choosing to stay to start their own families, the Columbus market enjoys a median resident age of 32.3.
This is seven years less than the median age for the state of Ohio. We can expect the next generation growing up here to stay, as well, fueling demand for the Columbus housing market.
7. The Tax Climate Is Balmy
Ohio’s effective property tax rate is 1.56%. That’s higher than the national average. However, Ohio is better than its peers for real estate owners, since its property tax rates are lower than those in several surrounding Midwestern states.
Property tax rates do vary between counties, so you may pay lower property taxes for investment property in the suburbs as in downtown Columbus.
8. The Low Cost of Living Attracts and Keeps Residents
Columbus, Ohio has to compete with many other surrounding cities in the Midwest. However, one point in its favor is the lower cost of living. That attracts residents who earn just as much here as in Chicago but don’t have to pay as much for things.
The annual salary is a little less than the national average, but rents and housing are even lower – and much lower than hotter markets like Chicago.
9. Housing Prices Are a Bargain
Average housing costs in the Columbus Ohio real estate market are $171,000 relative to the national average of $222,000, according to US News and World Report. However, the large rental market means the median rent is around $850 a month. This yields a decent return on investment for real estate owners.
10. Redevelopment Is Ongoing and Everywhere
There are at least ten major redevelopment projects planned around Columbus, Ohio. These projects total to an estimated billion dollars. Each of these redevelopment projects will increase demand for homes in the area. In neighborhoods with new luxury condos, shopping and employers, everyone’s property will be worth more.
This allows real estate investors to invest in the Columbus Ohio real estate market in one or multiple locations, depending on their budgets and preferences. Nor do you have to worry about the one multi-family housing unit you bought collapsing in value because the mega-project in downtown was delayed or fell through for lack of funding.
Columbus Ohio Real Estate Investment
Maybe you have done a bit of real estate investing in Columbus, OH but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Columbus real estate investment opportunity would be a key to your success. If you invest wisely in Columbus Ohio rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Columbus Ohio rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Columbus, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Columbus, OH. The Columbus housing market is a bright spot in a declining region. It mixes smart redevelopment, quality of life, and growth to create a stable, slow-growing market that will be thriving well into the foreseeable future.
If you’re looking to buy Columbus investment properties, it makes sense to do so when inventory levels are high. The surplus of available opportunities can lead to softer negotiations with sellers. Columbus has a lower cost of living than the national average. Homes downtown tend to sell at higher prices than those on the city’s south side.
There are many neighborhoods to consider for buying properties in Columbus. Properties in Worthington and downtown Columbus have higher than average median home prices, and their relatively low crime rates add additional appeal.
Places like Victorian Village, where home prices remain higher than many other places in the city, support a strong local market, and they can signify a lower level of risk.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Columbus real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
Apart from the Columbus Ohio housing market, you can also invest in Charleston, SC. The Charleston housing market is certainly benefiting from a local economy that has gained worldwide attention. The Charleston housing market contains multiple, sizable renting populations aside from a growing workforce that cannot afford to buy local single family homes.
The strong job market and relatively limited space is driving up rents and home values. According to report published on Charlestonrealestate.com, the feeling is that the Charleston real estate market will have an adequate demand for housing in 2019.
However, increased inventory and lower buying power will result in lower sale prices and signify a buyer’s market. A buyer’s market indicates that buyers have greater control over the price point.
Another market that we suggest is the housing market in Colorado Springs, CO. The Colorado Springs housing market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come.
Forget the Mile High City and invest in the Colorado Springs real estate market. The Colorado Springs real estate market is notable for how affordable it is compared to many other cities in the Rockies.
The median home price is around $260,000, and the median rent is roughly a thousand a month. That is about 10% higher than the national average, but the average price of a home in Denver passed half a million dollars in 2018. In short, you can buy two homes in Colorado Springs for the price of one in Denver.
The double digit price gains in Denver will push people to Colorado Springs, as well, since relatively few earn the $90,000 a year income needed to afford the average Denver home.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Low cost of living
Real estate friendly policies
https://www.dispatch DOT COM /business/20180713/columbus-wont-cap-rental-days-as-rules-for-airbnb-type-properties-near-finish-line
Overview / demographics
Market Trends And Forecast https://www.zillow.com/Columbus-oh/home-values https://www.realtytrac.com/statsandtrends/foreclosuretrends/oh/franklin-county/columbus https://www.neighborhoodscout.com/oh/columbus/real-estate https://www.movoto.com/columbus-oh/market-trends https://www.redfin.com/city/4664/OH/Columbus/housing-market https://www.trulia.com/real_estate/Columbus-Ohio/market-trends https://www.realtor.com/local/Columbus_OH https://www.movoto.com/guide/columbus-oh/columbus-real-estate-market-trends-and-statistics