Columbus, OH: A Hotspot for Homebuyers
If moving to Columbus, OH, is on your agenda, you’ll want to act quickly because this vibrant Midwest city now ranks as the most sought-after housing market in the U.S.
Columbus, a bustling college city with a population of more than 2 million, has risen to the top of the Realtor.com Most Popular Markets 2024 list. It earned high marks for its relatively low cost of living and low unemployment rate.
Why Columbus is a Top Choice
To calculate a city’s popularity, Realtor.com® looked at the cities that attracted the highest levels of buying interest in the past year. Larger cities like New York City, Dallas, Chicago, Miami, and Tampa, FL, attracted the most views across the country. However, it is not surprising to see populous metros attract more online traffic because larger metros tend to have more homes for sale.
When Realtor.com adjusted its analysis for market size, midsize cities—such as Columbus; Knoxville, TN; Louisville/Jefferson, KY; and Pittsburgh—were more popular with shoppers.
Economic Growth and Major Companies in Columbus
Donald Payne, a broker with Vision Realty in Columbus, says investments from companies like Intel, Google, and Amazon have driven people to the city. Columbus is also one of the country’s major test markets, which means it’s often ahead of the curve on new products and ideas. Additionally, it’s home to one of the biggest universities in the country—Ohio State University—giving it a young and vibrant energy.
“It’s a very robust market,” he says. The average price of a home here is $384,784; however, high interest rates have also somewhat affected home sales. Where last summer the average sale was 101% of the asking price, this summer, it’s hovering around 99.5%.
“If you’re coming [from the] East Coast or West Coast, you’re going to see a lot of value here,” Payne says.
Columbus Housing Market Dynamics
There is a lot of competition for affordable housing in the area, he adds. At the higher end of the market, “competition isn’t nearly as tough.”
Among the top 10 most popular markets that Realtor.com identified, five are in the South, three are in the Northeast, and two are in the Midwest. None is in the West.
“It is interesting to find that none of these top markets are traditional big cities such as New York and Los Angeles. Instead, many are midsize markets with relatively high affordability. While people move for different reasons, housing affordability is a key consideration for today’s homebuyers when choosing where to live,” says Realtor.com economist Jiayu Xu. “In addition, warmer weather is also a major draw as 5 out of 10 markets are located in the warm South.”
Columbus: A City with Broad Appeal
Columbus had the highest number of views per property, but it wasn’t the only factor economists considered.
Realtor.com also created a Regional Traffic Index, which analyses the amount of interest coming from within and outside the city’s region. A greater share of traffic coming from outside the region implies that the city has greater appeal across the country and could potentially be a more competitive space.
“Markets receiving high national interest tend to face increased demand from buyers across the country, driving up prices, even beyond what local buyers can afford, which may force local residents to move,” Xu says. “In contrast, markets with more regional or local interest typically experience more moderate price increases and more stable price trends.”
For Columbus, for example, 67.9% of interest came from the Midwest, 13.7% came from the Northeast, 15.4% came from the South, and 4.6% came from the West. Among out-of-state shoppers, buyers from New York showed the highest interest in Columbus homes, followed by Virginia and California.
The Changing Housing Market in Columbus
Over the years, Columbus has seen significant changes in its housing market. The influx of major companies and a growing population have contributed to increased demand for housing. The city’s affordability compared to coastal cities makes it an attractive option for many homebuyers.
Historical Housing Market Trends
In the past decade, Columbus has transformed from a relatively quiet real estate market to a bustling hub of activity. The presence of Ohio State University and the growth of tech and logistics sectors have spurred demand for both residential and commercial properties.
Recent Developments in Columbus
Recently, high interest rates have slightly cooled the market, but the city’s strong economic fundamentals continue to attract buyers. The shift from a 101% to 99.5% average sale price compared to the asking price indicates a slight moderation but still shows robust demand.
Other Popular Markets
Knoxville, TN
Knoxville has become a premier destination due to its high quality of life that blends urban and suburban living as well as growing job opportunities. Numerous outdoor activities also make it an attractive place for families.
Louisville/Jefferson County, KY-IN
Louisville offers a mix of urban amenities and suburban charm, making it a popular choice for homebuyers seeking affordability and a good quality of life.
Detroit-Warren-Dearborn, MI
Detroit’s housing market is one of the most affordable in the country, attracting buyers looking for value and investment opportunities.
Pittsburgh, PA
Pittsburgh is a top destination for college graduates embarking on new careers. It offers a lower cost of living and a diverse economy with strengths in technology, health care, education, and finance.
Portland-South Portland, ME
Portland’s smaller size, strong sense of community, and cultural identity make it a popular alternative to larger cities in the Northeast.
Tampa-St. Petersburg-Clearwater, FL
Tampa’s popularity has surged, with its median list price increasing by nearly 50% over the past five years, reflecting strong demand from home shoppers.
Charleston-North Charleston, SC
Charleston offers a warm climate, abundant housing inventory, and relatively affordable prices, making it a popular destination.
Hartford-East Hartford-Middletown, CT
Hartford stands out for its strong sense of community and cultural identity, making it an attractive option for buyers in the Northeast.
Asheville, NC
Asheville is known for its vibrant arts scene, beautiful natural surroundings, and high quality of life, drawing interest from buyers nationwide.
Conclusion
Columbus, OH, stands out as a top destination for homebuyers due to its affordability, economic growth, and vibrant community. As companies like Intel, Google, and Amazon continue to invest in the region, the city’s housing market is poised for further growth. Whether you’re looking for an affordable home or seeking to benefit from the city’s economic opportunities, Columbus offers a compelling proposition for buyers across the country.
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