Central Ohio Housing Market Update
“These are the highest home prices on record,” said 2017 Columbus REALTORS® President Mic Gordon. “Central Ohio is experiencing one of the hottest housing markets we’ve ever seen!”
In fact, the average Central Ohio home sold for $226k last month, a 5% increase over last year. That’s a nice statistic, but what does this really mean? Perhaps the homes that sold this year were just bigger and nicer than last year. Seems like a reasonable explanation, right? However, the average price per square foot actually increased by 7% from 2016 to 2017. In fact, average home sizes fell from 1,902 SF in 2016 to 1,867 in 2017. So not only are houses selling for more money, but on average, these houses are actually smaller than the ones that sold last year!
But why is this? Are these price increases really sustainable, or is this just another real estate bubble that’s about to burst? I’ve had this question myself, and decided to really look into it.
As I mentioned in the past, Columbus is a HOT city. Hundreds of people are moving here each week, and population growth doesn’t seem to be slowing down. It’s obvious demand for housing is increasing, but this demand can be difficult to quantify. That said, here are some interesting statistics to consider. This data comes from a 2016 report by the Department of Housing and Urban Development for the entire Columbus Metropolitan Area.
- Population Growth Per Year: 24,468
- New Households Per Year: 8,810
- New Homes Built Per Year: 5,982
- Housing Deficit: 2,828
The last number is the one I find interesting. The housing deficit is the difference between the number of homes and apartments being built, and the number of families moving to Central Ohio. People are moving here faster than houses can be built, which is putting a ton of pressure on the housing market. Exactly 2,828 families per year will move here without a place to live, which is causing two unique trends:
- Outward growth. Many people are finding homes in outlying areas such as Delaware, Newark, and Marysville.
- Rehabbing old neighborhoods. There are 50,000 vacant or distressed homes in Central Ohio that are finally getting revitalized. These are primarily in urban centers such as Franklinton, Driving Park, and Old Town East.
In conclusion, I think the evidence is quite clear. The Columbus real estate market is truly on the up and up for the foreseeable future. For better or for worse, change is coming and it will be exciting to see what’s to come over the next few years.
6827 Bishop’s Crossing Circle, Dublin OH 43016
4 bedrooms, 2.5 baths, 3540 square feet
It’s almost August and you know what that means. It’s time for one of our city’s most anticipated events of the year – The Dublin Irish Festival! Who doesn’t love the sound of an Irish flute, the smell of Guinness in the air, and classic Gaelic craic from a traditional Irish storyteller? Without further ado, here’s what you need to know for this year’s Irish Festival:
- When: Friday August 4 through Sunday August 6
- Where: Coffman Park in Dublin
- Tickets: $10 ($15 at the gate)
- Beverage of Choice: Guinness of course
- Top Entertainers: Gaelic Storm, Mary Black, and We Banjo 3
For more information, visit dublinirishfestival.org. Hope to see you there!