Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Columbus real estate spreadsheet template.
Thinking of buying in Columbus? Get our financial spreadsheet tailored to this specific market.
Thinking about investing in real estate in Columbus in 2025? You're on the right track.
Columbus is showing promising signs of growth, making it a solid choice for real estate investment.
In this blog post, we will explore why Columbus stands out as a great opportunity for investors.
We rely on reliable data and statistics from trusted sources to provide a clear picture of the market.
After a full analysis, we draw our own conclusions to help you make informed decisions. Enjoy the read!
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
Related analyses:
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, indicating a high quality of life for its residents.
One reason for this high score is the affordable cost of living, which is lower than the national average, making it attractive for both residents and investors. Additionally, Columbus boasts a strong job market, with a diverse range of industries such as technology, education, and healthcare, providing stability and growth potential.
Another factor contributing to the livability score is the vibrant cultural scene, including numerous museums, theaters, and music venues, which enhances the quality of life and attracts new residents. These characteristics make Columbus a desirable place to live, thereby increasing the demand for housing and potentially driving up property values.
However, if the livability score were to drop below 70, it might indicate underlying issues that could affect the attractiveness of investing in real estate in Columbus.
Source: AreaVibes
2) Columbus has a very low "vacancy rate" of 3.0%, showing it's a highly occupied and competitive market
Signal strength: strong
The vacancy rate in Columbus is currently at 3.0%, which is considered very low. This low vacancy rate indicates that the market is highly occupied and competitive, meaning there is strong demand for rental properties.
When demand is high, it often leads to increased rental prices and stable income for property owners. This makes buying a property in Columbus a potentially profitable investment as you are likely to find tenants quickly.
In Columbus, properties that are easily rented are typically well-maintained single-family homes located in desirable neighborhoods like Clintonville. These areas are popular due to their proximity to amenities and good schools, attracting families and professionals alike.
If the vacancy rate were to rise to above 7.0%, it might indicate an oversupply of rental properties, making it less favorable for investment.
Sources: NeighborhoodScout, DataUSA, USCensus
3) Columbus boasts a strong employment rate of 67.6%
Signal strength: moderate
The employment rate in Columbus is at 67.6%, which is considered high compared to many other regions in the United States.
This high employment rate indicates a strong and stable economy, which is a positive sign for real estate investors. When more people are employed, they have the financial means to buy or rent properties, thus increasing demand in the housing market.
In Columbus, the major employment sectors include education, healthcare, and technology, which are known for their stability and growth potential. Companies like Ohio State University and Nationwide Insurance are significant employers, contributing to the city's economic health.
If the employment rate were to drop below 60%, it might suggest economic challenges, potentially affecting the real estate market negatively.
4) By 2026, infrastructure projects like the "Cleveland Avenue Corridor Improvement" in Columbus, Ohio, are expected to significantly increase real estate values
Signal strength: moderate
Several infrastructure projects in Columbus, Ohio, are poised to boost real estate values by 2026, making property investment in the area a promising opportunity.
The Cleveland Avenue Corridor Improvement Project, set for completion in March 2025, is a key development. This project involves a comprehensive upgrade of the Northern corridor of Cleveland Avenue in Clinton Township, including enhanced crosswalks, new sidewalks, and improved street lighting. These enhancements are expected to boost safety and aesthetics, which can lead to increased real estate value in the area.
Another significant project is the Cooke Road Improvement Project, scheduled for completion in Spring 2026. This project includes the full-depth reconstruction of East Cooke Road, with the addition of a shared-use path, sidewalk, and storm sewer improvements. Such upgrades are likely to improve livability and appeal, potentially driving up property values.
The I-70/I-71 Downtown Ramp Up, with phases ending in Fall 2025 and Fall 2026, aims to address safety and congestion issues in downtown Columbus. By improving connectivity and safety through new urban avenues and enhanced freeway crossings, this project is expected to increase the attractiveness and value of nearby real estate.
Sources: Clinton Township, Ohio Department of Transportation, All Columbus Data
5) Columbus is experiencing population growth, with its metropolitan area expected to expand by 2.9% between 2024 and 2029
Signal strength: moderate
The population growth in Columbus, Ohio, is a key indicator of potential investment opportunities in the real estate market. As the metropolitan area is projected to increase by 2.9% from 2024 to 2029, this growth suggests a rising demand for housing and infrastructure.
Historically, both the city and its metropolitan area have experienced steady population increases. From 2020 to 2024, the city's population grew from 906,418 to 915,427, while the metro area saw an increase from 1,644,000 to 1,727,000. This consistent growth pattern indicates a thriving urban environment that attracts new residents.
With a projected population of 2,523,551 by July 2029, the Columbus market is expected to see increased demand for real estate. This demand can lead to higher property values and rental income, making it a potentially lucrative investment for property buyers.
Moreover, the long-term forecast of a 6.2% population increase by 2034 further supports the idea that Columbus is a growing economic hub. As more people move to the area, the need for housing, services, and amenities will likely expand, driving up property values and offering investors a chance to capitalize on this growth.
Sources: Macrotrends, Synergos Technologies, JobsOhio, World Population Review, Columbus Metropolitan Club
6) Airbnb or "short-term rental" in Columbus offers a decent profitability rate of 4.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Columbus is 4.0%, which is considered moderately attractive for investors. This percentage indicates that the income generated from short-term rentals is relatively healthy compared to the initial cash investment.
Columbus attracts a variety of short-term tenants, including business travelers, university visitors, and tourists attending events or exploring the city. The presence of Ohio State University and several corporate headquarters means there is a steady demand for temporary accommodations.
Additionally, Columbus hosts numerous conventions, sports events, and cultural festivals, drawing in visitors who prefer the comfort and convenience of Airbnb properties. This consistent influx of guests supports the potential for a stable rental income stream.
If the cash-on-cash return were to drop below 2.0%, it might suggest that the investment is less favorable, indicating a need for caution in the market.
Source: Mashvisor
7) The "cash-on-cash return" of 4.0% for long-term rentals in Columbus is reasonably appealing
Signal strength: moderate
The cash-on-cash return of 4.0% in Columbus indicates that the property investment is generating a moderate return relative to the cash invested. This percentage is a sign that the market is performing well enough to provide a reasonable return, making it an attractive option for investors.
In Columbus, long-term tenants often include students from Ohio State University, as well as professionals working in the city's growing industries. These tenants are typically looking for affordable and stable housing, which makes them reliable renters for property owners.
Additionally, Columbus has a diverse economy with sectors like education, healthcare, and technology, which supports a steady demand for rental properties. This economic diversity ensures that rental demand remains consistent, further enhancing the attractiveness of investing in this market.
If the cash-on-cash return were to drop below 2.0%, it might suggest that the investment is less favorable, indicating potential issues with profitability.
Source: Mashvisor
8) Columbus homes are priced 44% lower than the national average
Signal strength: minimal
The fact that Columbus has a median home price 44% below the national average suggests that there is significant room for property value appreciation. This makes it an attractive market for investors looking to capitalize on potential growth in property values.
In Columbus, the most expensive properties are likely to be luxury homes in areas like German Village, known for their historic charm and proximity to downtown. On the other hand, the cheapest properties are often small single-family homes in neighborhoods like Linden, which are still developing and offer lower entry prices.
Investing in Columbus real estate could be particularly beneficial if you focus on emerging neighborhoods with potential for development. These areas might see a rise in demand as the city continues to grow, leading to increased property values over time.
If the median home price in Columbus were to rise to only 10% below the national average, it might indicate that the market is becoming less of a bargain and could alter the investment appeal.
Source: Zillow
9) A local in Columbus can afford a house in about 3.9 years, which is reasonable
Signal strength: minimal
In Columbus, it would take around 3.9 years for a local to buy a house, which is a reasonable timeframe compared to many other cities. This indicates that the housing market is relatively affordable, making it a potentially good investment opportunity.
With a median household income of approximately $62,350, residents have a decent earning capacity. This income level supports the ability to purchase homes, as the median home price is around $241,872, which is within reach for many families.
Such affordability suggests that the market is stable and accessible, attracting potential buyers and investors. When people can afford homes, it often leads to increased demand and potential appreciation in property values over time.
If the time to buy a house were to increase significantly, say to over 6 years, it might indicate that the market is becoming less affordable and potentially less attractive for investment.
Source: USCensus
So, is it a good time to invest in Columbus real estate in 2025? Absolutely!
Investing in real estate in Columbus in 2025 is a solid option, and here's why.
First, Columbus boasts an impressive livability score of 81, indicating a high quality of life with an affordable cost of living and a strong job market. This makes it an attractive place for residents and investors alike. The city's vibrant cultural scene further enhances its appeal, driving demand for housing and potentially increasing property values.
Moreover, Columbus has a very low vacancy rate of 3.0%, showing it's a highly occupied and competitive market. This low vacancy rate suggests strong demand for rental properties, leading to increased rental prices and stable income for property owners. Additionally, the city's employment rate of 67.6% indicates a strong and stable economy, further supporting the real estate market.
Infrastructure projects like the "Cleveland Avenue Corridor Improvement" are expected to significantly increase real estate values by 2026. With a projected population growth of 2.9% between 2024 and 2029, the demand for housing is set to rise, offering investors a chance to capitalize on this growth. The cash-on-cash return of 4.0% on Airbnb properties is also appealing, providing a healthy income stream for investors.
Finally, Columbus homes are priced 44% lower than the national average, offering significant room for property value appreciation. With locals able to afford a house in about 3.9 years, the market remains accessible and stable, attracting potential buyers and investors. All these factors combined make Columbus a promising and lucrative real estate investment opportunity in 2025.