Columbus is an ideal market for real estate investors, and if you have not yet explored this as an option for growing and diversifying your portfolio of rental properties, now is the time to pay attention.
Smart investors have already arrived, and they understand the potential and the opportunities that Columbus provides. You should be here, too, and in today’s blog, we’re going to show you why this is an up and coming investment market for buyers at any level of their real estate journey. It’s a stable, easy-to-enter market for new investors and an attractive region for experienced investors looking to scale their investments and earn some extra profit.
Let’s talk about why you want to invest in Columbus, Ohio.
Columbus, Ohio is a Hot Real Estate Market
We aren’t the only experts talking about the benefits of investing in Columbus. Forbes has declared it one of the best metro markets in the country to invest in housing. Recently, Realtor.com listed Columbus as one of the hottest real estate markets for investors. This rating was based on market demand and the number of days a listing goes from active to under contract.
There is an overwhelming demand for homes in Columbus, thanks to affordability and the growing population of people who are moving here for jobs, schooling, and a better quality of life.
One of the most important reasons that investors are flocking to Columbus is that the market here is easy to enter. If you decide to buy property in California or Miami, you’re going to need a lot of money. In Columbus, a wider pool of investors have access to real estate. Compared to the average national listing prices for homes, Columbus properties are extremely affordable - even as home values steadily increase.
The economy is strong and stable. It’s also diverse, not relying on a single industry. You’ll find companies that operate in technology, finance, healthcare, and education. There’s a large pool of tenants, and they’re all looking for high quality housing. When you can provide it, you’re going to make some money.
Why Are Investors Buying Columbus Real Estate?
Columbus is an attractive investment market because of its low unemployment and its ability to provide great jobs. Intel has just purchased 3,700 acres to build a new campus which will bring in over 100 jobs that carry an average salary of $140,000 per year. The state government employs a lot of Columbus residents and there are some great companies headquartered in our area that covers a diverse spectrum of industries and activities.
Hospital research is also in high demand in Columbus, creating some great healthcare and health-tech jobs. Ohio State University is in Columbus, providing a large pool of student tenants and professionals and teachers who work at the university. Six other colleges and universities are in the area.
Many people don’t realize that Columbus is the 12th largest city in the country. We have all of the opportunity and the art, culture, entertainment, recreation, and infrastructure as other large cities. What we’ve managed to avoid are the high prices, suffocating traffic and congestion, and unfortunate crime rates.
All of this has created a huge demand for rental housing. It’s driving up rental rates, reducing vacancy rates, and allowing owners to retain their best tenants. This is a city that reflects smart growth. We’re getting larger, but we’re remaining affordable and we’re not sacrificing quality of life as we grow.
Columbus Real Estate Investing: Population and Demographics
One of the best reasons to invest in Columbus rental properties is that you’ll have a large and stable tenant pool. More people are moving into the area, and we don’t expect that increase in population to taper off anytime soon.
Here are some interesting statistics to consider:
The metro Columbus area grows by an average of 50 new residents every day.
The last report from the U.S. Census Bureau shows that the population of Columbus grew by 15 percent over the past decade.
That’s seven times more than the population of Ohio grew as a whole.
You don’t have to be an experienced investor to know that strong population growth is one of the key metrics for deciding whether or not a market makes sense for real estate investments. You want to be in a place where more people are coming in. The larger the population, the higher the demand for good rental housing.
Take a look at who is living in and moving to Columbus:
Around 906,000 people are living in the city of Columbus.
The Columbus metro area has a population of more than 2.1 million people.
The City of Columbus has more residents than the City of San Francisco.
Population growth in Columbus is 0.75 percent year-over-year.
Median household incomes grew by 4.93 percent year-over-year.
Median household income in Columbus is $67,207.
Columbus is well-located. There’s an international airport in the city and it’s within a one day’s drive or a one hour’s flight of many major cities and populations.
Columbus Real Estate and Rental Market Strength
Columbus has made every Top-10 list that looks at real estate growth and market rankings. According to Realtor.com, real estate sales will increase by 13.7 percent this year and prices will be about 6.3 percent higher this year.
The demand for housing is hot, and as we have already mentioned - this is still an affordable market. Even with the growing population and the high demand, and even with the rising home values and house prices, you can get a lot more for your money in Columbus than you could in other markets.
Columbus is one of the most desirable real estate markets for investors because they don’t need a lot of money to buy high quality property here. The supply is tight, but there’s a diverse number of single-family and multi-family homes available when you know where to look and you’re ready to buy. Investors are here because our market is smaller. It’s less competitive than other metro areas, and our limited inventory is still accessible.
Average home prices range from around $130,000 in affordable neighborhoods like South Linden to around $500,000 at the high end in areas like German Village. The median home price here has sold for $206,000 recently. It was on the market for an average of 35 days.
These are statistics that work in the favor of real estate investors.
With great jobs, good schools, a thriving economy, and plenty of reliable institutions like hospitals, government agencies, and social services - Columbus is the place to be.
Let’s look at the rental market. It’s strong as well, and the homes that were renting for $900 a month a year or two ago are now renting for around $1,250. According to Zumper, median rent for a three-bedroom single-family home in Columbus is $1,650.
The rental market in Columbus should attract your attention because of those rising rental rates. Tenants can pay the increased rent and they’re educated about what homes are going for. Many of the tenants who are currently renting might have considered buying, but the housing market being what it is, they’ve decided to wait. This activity in the marketplace is good news for rental property owners. Nearly half the residents of metro Columbus are renters and not owners.
Your tenants will be well-qualified. They’ll earn enough money to pay the rent, they’ll be responsible citizens who love where they live, and they’ll be ready to contribute to a great rental experience.
Find Your Investment Opportunity with Columbus Property Managers
Ready to invest in Columbus rental property?
You’re not alone. The smart and savvy investors are already here, buying what they can in neighborhoods that deliver high-quality homes and rising rental values. It’s time for you to get into the market, and we are here to help.
At Solutions for Real Estate, we are local Columbus property managers. We live and work in the metro area, and we understand the nuances of the market, the competing properties that are for sale and for rent, and the shifting demands and needs of tenants.
Work with us when you’re ready to look for a great investment property, especially if you’re coming in from outside of Columbus. We can help you identify the right neighborhoods, the right rental homes, and the best way to map out a plan for successful real estate investing.
When we were in school in Columbus in the 1980s, the city was called “Cow Town.” Everyone wanted to leave, including us. We moved back in the late 1990s because we were hearing good things about Columbus and where it was going.
That move was a good decision. We’re glad to be here, and we love championing our community and the opportunities that are waiting for investors like you. If you’d like to learn more about what you can do here, please contact us at Solutions for Real Estate.