The dust is settling from the 2024 elections, and while headlines swirl with big-ticket issues, real estate investors and homeowners in Central Ohio are starting to calculate how policy shifts may impact their local market. As one of the fastest-growing real estate markets in the Midwest, Central Ohio consistently draws interest from both investors and prospective homeowners alike. Here’s what the new political landscape could mean for you.
1. Housing Affordability and Inventory: A Likely Focus Area
One of the core discussions leading up to this year’s election was the nation’s housing affordability crisis. In Central Ohio, the demand-supply gap has been increasingly problematic. A political focus on boosting affordable housing could introduce new incentives for developers to expand low- and moderate-income housing, potentially easing inventory constraints. As an investor, this means keeping an eye on possible tax credits or zoning adjustments that could spur multi-family or affordable housing projects in high-demand areas like Columbus.
2. Mortgage Rates and Financing Options
Interest rates have risen steeply over the past two years, impacting buyers’ affordability and driving many potential sellers to hold onto low-rate mortgages. Post-election, the Federal Reserve’s direction and federal housing policies could impact rates further. With a potential push for more accessible financing options, we may see relief for first-time homebuyers through expanded government-backed loan programs. For investors, this may open the door for increased rental demand, as high mortgage rates may continue to price out many prospective homeowners in the short term.
3. Infrastructure Investments: Bolstering Growth Potential
Infrastructure initiatives often gain traction post-election, and Central Ohio stands to benefit. The planned Intel manufacturing facility, tech parks, and continuous development along the I-71 and I-270 corridors make infrastructure an attractive topic for local and state politicians. Improved infrastructure means increased property values in surrounding neighborhoods, particularly for residential and commercial investments. This could result in more robust demand in areas previously overlooked, especially in the suburban pockets around Columbus.
4. Property Taxes and Regulatory Adjustments
Tax changes and local regulations are likely to reflect shifts in leadership at the county and state levels. If there is a political appetite for property tax adjustments or incentives to attract residents and businesses, this could mean a favorable outcome for homeowners and investors. However, increased property taxes to support local infrastructure or public services could eat into investor profits if rental rates do not increase proportionally. Paying attention to proposed tax policies and property reassessment schedules is key for accurate financial planning in the coming years.
5. Rent Control and Tenant Rights Legislation
Tenant rights have been a hot-button issue nationwide, and Central Ohio is no exception. While not currently under rent control, Columbus has seen a push for tenant protections in recent years. If tenant advocacy groups gain momentum with elected officials, we may see proposals around rent stabilization or stricter eviction protections. Investors should stay informed about these trends, as rent control policies could limit profitability in certain areas and create added complexity in managing rental properties.
6. Green Energy Initiatives and Sustainability in Real Estate
With increasing emphasis on sustainability and climate change, new green building codes, tax credits for energy-efficient upgrades, and eco-friendly zoning initiatives could become prominent. For property owners, this could mean opportunities for property value appreciation through energy-efficient enhancements. Investors could also see higher tenant demand for properties with solar installations or energy-saving technologies, especially in newer developments. However, eco-friendly building requirements might increase upfront costs, so weighing long-term ROI is crucial.
A Note to Homeowners and Investors in Central Ohio
Central Ohio remains a dynamic market with an ongoing inflow of tech and manufacturing jobs, appealing to both traditional homeowners and investors. As new leadership settles in, keep a close eye on how policies unfold and consider both short- and long-term impacts. For investors, this means balancing risk and reward with an eye on emerging regulations and shifts in buyer behavior. For homeowners, understanding property tax impacts and market demand in your area will be essential in navigating this evolving landscape.
Ultimately, Central Ohio continues to be a powerful market in the Midwest, driven by growth, innovation, and robust demand. The 2024 elections bring new variables to consider, but with careful attention to policy and market trends, there’s every reason to be optimistic about the future.
Kyle Alfriend has been investing in real estate for over 35 years, assisting over 3,000 clients in buying, selling, or investing in real estate.
For more tips 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