Columbus Housing Market Trends and Forecast for 2024 – Norada Real Estate Investments

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Given the swift pace of home sales, competitive pricing, and a notable percentage of sales over list price, the Columbus housing market leans towards being a seller’s market. As of the latest data, home prices in Columbus have experienced an increase over the past year, indicating a trend of appreciation rather than a decline.

Central Ohio Housing Report

In December, the Columbus & Central Ohio Regional MLS recorded 1,917 closed sales, reflecting a 5.7 percent decrease compared to December 2022, according to Columbus REALTORS®. Despite a slight dip in closed sales, the median sale price experienced a robust 7.3 percent year-over-year increase, reaching $295,000.


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The market dynamics underwent a notable change in December. During the peak of summer sales, homes were spending approximately 17-18 days on the market. However, in December, this figure rose to 30 days, marking the highest since March.

The total inventory of homes for sale surpassed 3,000, indicating a 9.7% rise over the previous December. Notably, the supply stood at 1.4 months, reflecting a significant 27.3 percent increase year-over-year. New listings in December were in line with the traditional sluggishness of this period, with 1,434 new listings entered into the MLS, only a 1.6 percent decrease from the previous year.

Homes were observed to sell for 1.1 percent under the asking price, potentially setting the stage for negotiations at the offer table.

Market Insights 

Despite the competitive nature of the Columbus housing market, Patti Brown-Wright, the 2023 Columbus REALTORS® President, encourages prospective buyers to act promptly. Brown-Wright notes, “The Columbus housing market is as competitive as ever, but if you’re in the market for a home, buying now is a great idea. We’re a long way from being a buyers’ market, but if you’re shopping, I would recommend getting in the game quickly because we’re expecting a very busy spring.”

Columbus, Ohio, earned the accolade of being the No. 3 hottest housing market for 2024 according to Zillow. This recognition is reinforced by the inclusion of two other Ohio metros, Cincinnati (No. 2) and Cleveland (No. 8), in the top 10. Buffalo, N.Y., secured the top spot on Zillow’s list.

At the local level, specific areas within Central Ohio demonstrated distinct performances. For instance, Pickerington saw 25 closed sales at a median price of $449,900, marking a substantial 45% increase over the previous December. Marion experienced a 9.5% year-over-year increase in total sales. Obetz witnessed 12 closings with a notable 33.8% increase in the median sale price, reaching $356,425. Obetz also emerged as a standout performer with a 27.2 percent increase in new listings year-over-year and a remarkable 118 percent increase in the inventory of homes for sale, securing the fourth position in the region.

Yearly Comparison and Market Trends

Comparing 2023 against 2022, the housing market saw a 9.7 percent increase in the number of homes available for sale. However, factors such as higher mortgage rates and rising prices contributed to an 11.9 percent decrease in new listings, culminating in a year-end total of 32,022.

The median sold price for the year reached $302,000, reflecting a 4.1 percent increase over 2022. While the percentage of sold price to the last list price experienced a slight 1.5 percent decrease year over year, single-family home prices rose by 4.6 percent, and condo prices saw a notable increase of 6.7 percent. Out of the 27,592 sales in the year, 13.8 percent comprised condominiums.

Is Columbus Ohio a Seller’s Real Estate Market?

The following housing market trends are based on single-family, condo, and townhome properties listed for sale in Columbus on Realtor.com. Land, multi-unit, and other property types are excluded. In December 2023, Columbus, OH continues to be a seller’s market, characterized by more prospective buyers than available homes. This trend not only impacts pricing but also underscores the need for buyers to act decisively in a competitive market.

Median Listing Home Price Soars

One of the standout features of the Columbus, OH 2024 housing market is the surge in the median listing home price, reaching an impressive $275,000 in December 2023. This marks a significant uptick of 8.6% compared to the previous year. Homebuyers and sellers alike are experiencing the impact of this robust growth, shaping the dynamics of the real estate landscape.

Price per Square Foot: A Crucial Metric

Examining the median listing home price per square foot further emphasizes the market’s strength, with the figure standing at $186. This metric provides valuable insights for both buyers and sellers, offering a nuanced perspective on property values and affordability in different neighborhoods across Columbus, OH.

Sale-to-List Price Ratio Reflects a Seller’s Market

The sale-to-list price ratio stands at an impressive 100%, indicating that homes in Columbus, OH, sold for approximately the asking price on average in December 2023. This showcases a seller’s market, where demand outpaces the available inventory. For sellers, this represents a favorable environment to secure optimal returns on their properties.

Median Days on Market: A Key Indicator

The median days on market in Columbus, OH, averaged 47 days in December 2023. This metric is indicative of the time it takes, on average, for a property to sell. The upward trend in median days on market, compared to the previous month and slightly higher than the previous year, suggests evolving buyer behavior and market dynamics. Buyers and sellers should stay attuned to these changes for informed decision-making.

Columbus Ohio Housing Market Forecast for 2024

According to data sourced from Zillow, the average home value in Columbus stands at $232,847, reflecting a 4.9% increase over the past year. Homes in this vibrant market typically go pending in an impressively swift 11 days. While market conditions can change, the current data and forecast suggest stability and growth rather than an impending crash in the Columbus housing market.

Key Market Statistics (As of December 31, 2023)

  • For Sale Inventory: 1,475
  • New Listings: 569
  • Median Sale to List Ratio: 1.000 (As of November 30, 2023)
  • Median Sale Price: $222,650 (As of November 30, 2023)
  • Median List Price: $266,667 (As of December 31, 2023)
  • Percent of Sales Over List Price: 42.0% (As of November 30, 2023)
  • Percent of Sales Under List Price: 40.2% (As of November 30, 2023)

These figures provide a comprehensive snapshot of the Columbus housing market, showcasing its robust nature and the high demand for properties.

Columbus MSA Housing Forecast 

Looking ahead, the Metropolitan Statistical Area (MSA) forecast for Columbus, OH, indicates positive trends. As of December 31, 2023, the forecast predicts a growth rate of 0.1% by January 31, 2024, followed by a 0.7% increase by March 31, 2024, and a notable 4.4% rise by December 31, 2024.

The Columbus Metropolitan Statistical Area (MSA) encompasses several counties in Ohio, forming a significant economic and residential hub. The counties included in the MSA contribute to the overall vibrancy of the housing market. The MSA’s size and influence make it a key player in the regional real estate landscape.

Considering the competitive market and rising prices, prospective buyers may find it challenging. However, individual circumstances and priorities should guide decisions, and consulting with a real estate professional is advisable to make informed choices in this dynamic market.

Columbus Ohio Housing Market Forecast for 2024
Source: Zillow

Columbus Real Estate Investment Overview?

Columbus, Ohio, is one of the fastest-growing cities in the Midwest, with a population of over 900,000. The city’s real estate market has been on an upward trajectory in recent years, with home prices and rental rates rising steadily. This makes it an attractive destination for real estate investors looking for a stable and profitable investment.

Investing in Columbus real estate offers a wide range of opportunities, from single-family homes to multi-unit apartment complexes. The city’s diverse economy, low unemployment rate, and growing population make it a promising market for rental properties. According to Zillow, the average home value in Columbus is up over the past year. This suggests that property values are on an upward trend, which can be advantageous for investors seeking long-term appreciation.

One key advantage of investing in Columbus real estate is the affordability of properties compared to other major cities. While coastal markets like New York and San Francisco may have higher appreciation rates, they also have significantly higher price tags, making it difficult for many investors to enter the market. In contrast, Columbus offers relatively affordable properties with solid returns on investment.

Another factor that makes Columbus an attractive real estate investment destination is the city’s growing job market. The unemployment rate in Columbus is consistently below the national average, with a diverse economy that includes sectors like healthcare, education, and technology. This means there is a steady demand for rental properties from young professionals and families who are moving to the city to take advantage of job opportunities.

The Columbus real estate market is also attractive to investors due to the city’s robust infrastructure and transportation network. The city has a well-developed public transportation system, including buses, light rail, and bike-sharing programs, making it easy for residents to get around without a car. Additionally, the city is home to Port Columbus International Airport, which provides direct flights to many major U.S. cities.

When considering investing in Columbus real estate, it’s essential to note that the market can vary significantly from neighborhood to neighborhood. For example, the median home value in Italian Village is $397,113, while in Milo-Grogan, it is $114,460. Therefore, it’s essential to research individual neighborhoods and consult with a local real estate agent who has a deep understanding of the market.

In summary, Columbus offers a promising real estate investment opportunity, with affordable properties, a strong job market, and a growing population. While the market can vary by neighborhood, investing in Columbus real estate offers the potential for solid returns on investment in both the short and long term.

Top Reasons to Invest in Columbus Real Estate Market for the Long Term

Investing in real estate can be a lucrative long-term strategy, but it’s important to choose the right market. Columbus, Ohio, is a city that is increasingly becoming popular among real estate investors. Here are the top six reasons to consider investing in Columbus real estate market for the long term:

  • Strong Job Market: Columbus has a diverse economy and a strong job market. The city is home to several Fortune 500 companies, including Nationwide Insurance, American Electric Power, and Huntington Bancshares. The city also boasts a thriving technology sector, with companies like IBM and JPMorgan Chase had a significant presence in the area. With a low unemployment rate and a growing economy, Columbus is an attractive location for those looking to invest in real estate.
  • Growing Population: Columbus has experienced steady population growth over the past decade, making it one of the fastest-growing cities in the United States. This growth is expected to continue in the coming years, with estimates suggesting that the population will increase by 10% by 2030. A growing population means an increased demand for housing, which can translate to higher rental yields and property values.
  • Affordable Housing Market: Despite its strong job market and growing population, Columbus remains an affordable housing market, especially when compared to other major cities. The median home price in Columbus is currently around $227,481, which is significantly lower than in other cities like New York, San Francisco, or Los Angeles. This makes Columbus an attractive option for real estate investors looking to get in on the ground floor of an emerging market.
  • Strong Rental Market: Columbus has a strong rental market, with rental demand consistently outpacing supply. This has resulted in a relatively low vacancy rate, which has been hovering around 5% for the past few years. The strong rental market is good news for real estate investors, as it means they are likely to find tenants quickly and keep their properties occupied for longer periods. As of March 2023, the average rent for a 1-bedroom apartment in Columbus, OH is currently $975. This is an 8% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Columbus remained flat. The average rent for a 1-bedroom apartment increased by 2% to $975, and the average rent for a 2-bedroom apartment remained flat.
  • Favorable Tax Climate: Ohio has a relatively low tax burden compared to other states, making it an attractive location for real estate investors. Property taxes in Columbus are also relatively low compared to other major cities, which can help investors keep their expenses down and their profits up.
  • Thriving Arts and Culture Scene: Columbus has a vibrant arts and culture scene, with several museums, theaters, and galleries located in the city. The city also hosts several festivals throughout the year, including the Columbus Arts Festival and the Ohio State Fair. This cultural richness attracts more people to the city and makes it an even more attractive place to live, work, and invest in real estate.

Therefore, Columbus, Ohio, offers a combination of strong economic fundamentals, affordable housing, and a thriving rental market, making it an attractive option for real estate investors looking to make long-term investments. As with any real estate purchase, act wisely. Evaluate the specifics of the Columbus housing market at the time you intend to purchase.

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 areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Columbus.


Sources:

  • https://www.columbusrealtors.com/housing-reports
  • https://www.zillow.com/Columbus-oh/home-values
  • https://www.neighborhoodscout.com/oh/columbus/real-estate
  • https://www.realtor.com/realestateandhomes-search/Columbus_OH/overview

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