In the upcoming 2024 elections, there are more than 80 ballot measures in Central Ohio that could significantly impact real estate buyers, sellers, and investors. For a full breakdown of the issues, see this Columbus Dispatch article. Here’s a summary of the key issues and their potential impact on home owners, buyers, and investors:
1. Property Tax Reforms
Some counties in Central Ohio are voting on property tax levies or reforms, which will affect homeowners and investors. These could either raise taxes to fund local infrastructure, schools, or public services, or reduce them through exemptions for certain groups like seniors or veterans.
- Impact on Buyers: Potentially higher property taxes could increase the overall cost of homeownership, especially for first-time buyers. However, if taxes fund improvements in schools or infrastructure, property values may rise, benefiting long-term owners.
- Impact on Sellers: Higher taxes could discourage potential buyers, especially if they are cost-sensitive. But improvements funded by the tax increase may make homes in well-supported areas more attractive.
- Impact on Investors: Increased property taxes may cut into profits from rental properties, but those with long-term strategies may benefit from the corresponding rise in property values.
2. Affordable Housing Initiatives
Several proposals focus on increasing affordable housing, such as funding for housing developments targeted at low- and middle-income residents or incentives for developers to build affordable units.
- Impact on Buyers: More affordable housing could increase the supply of entry-level homes, making it easier for first-time buyers to enter the market.
- Impact on Sellers: An increase in the supply of lower-cost homes could put downward pressure on home prices, particularly in lower-priced neighborhoods.
- Impact on Investors: Developers may benefit from tax incentives, grants, or other forms of support for building affordable housing, making these areas attractive for investment. However, existing property owners may face increased competition if more affordable homes come onto the market.
3. Rent Control Initiatives
In response to rising rent prices, some municipalities may have rent control measures on the ballot that cap rent increases or offer tenant protections.
- Impact on Buyers: Rent control could make renting a more attractive option compared to buying, as tenants may find stable rental prices. This could soften demand for home purchases.
- Impact on Sellers: Rent control could reduce investor demand for multi-family properties, as landlords face restrictions on raising rents, potentially leading to slower home sales in areas with a high concentration of rental properties.
- Impact on Investors: Landlords may see reduced returns on rental properties if they cannot raise rents in response to rising costs. Investors may shift focus away from areas with rent control, lowering demand for investment properties.
4. Zoning & Development Regulations
Several local initiatives aim to modify zoning laws to allow for higher-density housing or restrict development in certain areas. These changes could reshape the local real estate landscape.
- Impact on Buyers: Looser zoning laws could result in more housing options, particularly multi-family and mixed-use developments, which could improve affordability and availability.
- Impact on Sellers: Increased housing development may lead to more competition and lower property values, especially in densely developed areas. However, sellers in high-demand, newly zoned areas could benefit from increased interest.
- Impact on Investors: Investors may find new opportunities in areas that allow for higher-density housing or commercial-residential development. However, those with existing properties in newly restricted areas may see a decrease in land value.
5. Infrastructure Bonds
Some localities are proposing infrastructure bonds to fund improvements to roads, public transportation, and utilities, which can impact property values and desirability.
- Impact on Buyers: Improved infrastructure can make previously less desirable areas more attractive, increasing property values and drawing in more buyers.
- Impact on Sellers: Sellers in areas benefiting from infrastructure improvements may see their property values rise as transportation and services improve.
- Impact on Investors: Infrastructure investments can drive long-term growth in property values, particularly in underdeveloped areas. Investors might target these regions for future appreciation.
These ballot issues could have long-lasting effects on the Central Ohio real estate market, impacting everyone from first-time homebuyers to seasoned investors. It’s important to stay informed about local measures that could shift the market dynamics.
Kyle Alfriend has been active in real estate for over 35 years, assisting over 3,000 clients in buying, selling, and investing in real estate.
For more information on buying, selling, or investing, or for a personal consultation, contact Kyle Alfriend, (614) 395-1776, or info@AlfriendGroup.com Or go to our website, AlfriendGroup.com.