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Hoping for a drop in Columbus property prices in 2025? Don’t count on it.
Despite economic shifts, the Columbus market is poised for growth, with demand outpacing supply and driving prices upward.
Let’s explore why property values in this vibrant city are expected to rise in the coming years.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By examining this data closely, we draw our own conclusions, which we share at the end of this blog post. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Columbus boasts an impressive livability score of 81, highlighting its excellent quality of life
Signal strength: strong
The livability score of 81 in Columbus is considered excellent because it reflects a high quality of life. This score is a strong indicator that housing demand is likely to increase as more people are attracted to the area.
One reason for this high score is the vibrant arts and culture scene in Columbus, which includes numerous galleries, theaters, and music venues. Additionally, the city boasts excellent educational institutions, such as Ohio State University, which draws students and faculty from around the world. Furthermore, Columbus has a strong job market with diverse opportunities in sectors like technology, healthcare, and finance.
These factors contribute to the city's appeal, making it a desirable place to live and work. As a result, real estate investors might see rising property values as more people move to the area seeking these benefits.
However, if the livability score were to drop below 70, it might suggest a decline in these attractive qualities, potentially leading to stagnant or decreasing housing prices.
Source: AreaVibes
2) In Columbus, there are only about 0.46 homes for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.46 home per inhabitant in Columbus suggests a limited housing supply.
When the number of homes is less than half per person, it indicates a potential shortage. This shortage can lead to increased demand for available homes, driving prices up. In Columbus, a unique factor is the steady influx of students and professionals due to its universities and growing job market.
This influx means that more people are looking for housing in the area, further tightening the supply. As demand continues to outpace supply, housing prices are likely to rise in the coming years.
If the ratio were to increase to 0.6 home per inhabitant, it might suggest a more balanced market, potentially stabilizing prices.
Source: USCensus
We created this infographic to show how property prices in Columbus compare to other big cities in Ohio. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) Home values in Columbus have risen by 4.0% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Columbus have already changed by 4.0% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is likely outpacing supply, which often leads to rising prices.
Currently, the median home price in Columbus is around $241,872, which is a crucial figure for potential investors to consider. Additionally, the median sales price per square foot is around $185, providing further evidence of the market's strength and potential for growth.
These statistics indicate that the market is healthy and could continue to appreciate, making it an attractive option for investment. If the trend continues, housing prices in Columbus might keep going up in 2025, offering potential returns for those who invest now.
However, if the home value change were to drop below 1.0%, it might signal a cooling market, which could alter the current positive outlook.
Source: Redfin
4) Three major websites confidently predict that home prices in Columbus will rise in 2025
Signal strength: strong
There are three major websites forecasting a positive growth for home prices in Columbus in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with a projected increase of 5.70%, followed by Redfin at 4%, and finally, Zillow with a 2.60% growth prediction. The significant gap between these forecasts suggests varying levels of confidence in the market's potential.
While these predictions are encouraging, it's important to remember that forecasts should be taken with caution as they are based on assumptions and models that may not fully capture future market dynamics. Therefore, we should also rely on strong, reliable, and actual data to make a well-informed investment decision.
If these forecasts were to predict a negative growth or a decline in home prices, it would signal a potential downturn in the market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
Our team designed this infographic to show how competitive the real estate market in Columbus is vs. other major cities in Ohio. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Columbus has a very low "vacancy rate" of 3.0%, showing it's a bustling and competitive market
Signal strength: moderate
The vacancy rate in Columbus is currently at 3.0%, which is considered very low. This low vacancy rate suggests that most properties are occupied, indicating a strong demand for housing in the area.
When demand is high and supply is limited, prices tend to rise as more people compete for fewer available homes. This competitive market environment is a strong signal that housing prices are likely to increase in the near future, possibly by 2025.
In Columbus, well-maintained, single-family homes in areas like the Short North Arts District are particularly popular and easily rented. These properties attract tenants due to their proximity to amenities and vibrant community.
If the vacancy rate were to rise above 7.0%, it might indicate a shift towards a less competitive market, potentially stabilizing or even decreasing housing prices.
Sources: NeighborhoodScout, DataUSA, USCensus
6) In Columbus, about 42% of homes sell for more than their listing price
Signal strength: moderate
In Columbus, a significant indicator of a rising housing market is that around 42% of sales close at a price higher than the listing price. This suggests that buyers are willing to pay more than the asking price, which often happens when demand exceeds supply.
When more buyers are competing for the same properties, it drives prices up, indicating a strong demand for housing in the area. This trend is a clear sign that the market is competitive and prices are likely to continue rising.
For potential investors, this means that investing in Columbus real estate could yield profitable returns as property values increase. However, if the percentage of sales closing above the listing price were to drop significantly, say below 20%, it might suggest a cooling market.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in Columbus vs other major places in Ohio. Here, the percentage increase or decrease in market value will help you see long-term trends.
7) In Columbus, home prices have consistently risen by an average of 8.5% each year over the past decade
Signal strength: moderate
The fact that home prices in Columbus have appreciated at an average rate of 8.5% over the last decade is a noteworthy signal for potential investors. This consistent growth suggests that there has been a steady demand and an upward trend in home values, which can create a favorable environment for future price increases.
While this historical data is promising, it's important to remember that past performance doesn't guarantee future results. However, such a track record can still be a valuable indicator when considering future investments in the Columbus housing market.
Investors should consider this alongside other factors, as market conditions can change due to various influences. If the appreciation rate were to drop significantly, say below 3% over a similar period, it might suggest a different trend.
Source: NeighborhoodScout
8) Columbus homes are priced 44% lower than the national average
Signal strength: minimal
The fact that Columbus still has a median home price 44% below the national average suggests that there is room for growth in the housing market.
When a city's home prices are significantly lower than the national average, it often indicates that the area is attractive to potential buyers and investors looking for affordable options. This demand can lead to increased competition and rising prices as more people seek to purchase homes in the area.
In Columbus, the most expensive properties are likely to be luxury homes in neighborhoods like German Village, known for their historic charm and proximity to downtown. On the other hand, the cheapest properties might be small, older homes in areas like Linden, which are still undergoing revitalization efforts.
If the median home price in Columbus were to rise to match or exceed the national average, it might suggest that the market has reached its peak, and prices may stabilize or even decrease.
Source: Zillow
This infographic designed by our team breaks down the latest livability score in Columbus but also in other big cities in Ohio. It provides a clear view of which locations offer the best overall living conditions, which is a good thing to know if you want to buy real estate.
9) A local in Columbus could afford a house in about 3.9 years, which is reasonable
Signal strength: minimal
In Columbus, it currently takes around 3.9 years for a local to save enough to buy a house, which is considered reasonable.
This is based on the median household income of approximately $62,350 and the median home price of about $241,872. When the time needed to buy a house is relatively short, it suggests that homes are still affordable for many people.
As more people can afford to buy, demand for housing tends to increase, which can lead to rising home prices in the future. If the market remains attractive to buyers, it is likely that housing prices will continue to rise in 2025.
However, if the time to buy a house were to increase significantly, say to over 5 years, it might indicate that prices are becoming too high for locals, potentially slowing down the market.
Source: USCensus
10) Columbus boasts a strong employment rate of 67.6%
Signal strength: minimal
The employment rate in Columbus is at 67.6%, which is considered high compared to other regions in the United States. This high employment rate suggests that more people have stable incomes, which can lead to an increased demand for housing as people look to buy homes.
In Columbus, the major employment sectors include education, healthcare, and finance, which are typically stable and well-paying industries. Companies like Nationwide Insurance and OhioHealth employ a significant number of people in the area, contributing to the robust job market.
With a strong job market, people are more likely to invest in real estate, driving up housing prices. Therefore, the high employment rate is a positive signal for potential real estate investors looking at the Columbus market.
If the employment rate were to drop below 60%, it might indicate economic instability, which could lead to a decrease in housing demand and potentially lower prices.
So, are prices going to climb in Columbus in 2025? Absolutely
Columbus is poised for a rise in housing prices by 2025, and here's why.
First, the city boasts an impressive livability score of 81, indicating a high quality of life that attracts more residents, thereby increasing housing demand. With only 0.46 homes per person, the limited supply further fuels this demand, pushing prices upward. Additionally, home values have already risen by 4.0% since last year, and three major websites predict continued growth, with forecasts ranging from 2.60% to 5.70%.
Moreover, Columbus has a low vacancy rate of 3.0%, showing a highly occupied market, and 42% of homes sell above their listing price, highlighting strong buyer competition. Historically, home prices have appreciated by an average of 8.5% annually over the past decade, and with homes priced 44% lower than the national average, there's room for growth. The reasonable time of 3.9 years for locals to afford a home and a strong employment rate of 67.6% further support the likelihood of rising prices.
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- Yes, investing in real estate is a solid option in 2025 in Columbus