The Columbus housing market has been growing rapidly over the past couple of years. A recent report from RealtyTrac found that repossessions in the city and major Ohio cities decreased 13% over the past year, while they increased 23% throughout most of the rest of the country. Jim Weiker of The Columbus Dispatch recently cited research showing that in 2013, prices increased 4.5% and sales increased by 17%. There are a number of factors that show that the housing market will continue to gain momentum in the coming year.
Reasons the Columbus Housing Market Continue to Grow
The Columbus housing market faced one of the steepest declines during the recession. However, it has also proven to be one of the most robust since the recovery took hold. Here are some of the redeeming economic variables that will drive the market in the coming year.
Stronger Labor Market
Research from the University of Georgia’s Terry College of Business predicts that Columbus will create 1,500 jobs in the coming year. Strong growth will fuel demand for housing, which will invariably drive housing prices in 2015.
Removing Condemned Properties
During the economic downturn, thousands of properties were repossessed. Many of those properties have begun to deteriorate after sitting on the market for the past several years. A recent report from Attorney General, Mike DeWine states that the state recognizes the problems those properties have caused and provided grants to demolish 1,300 damaged units. Since disarrayed properties reduced values of surrounding properties, tearing them down should boost the rest of the market.
New Affordable Housing Initiatives
The housing shortage has been a serious concern in Columbus over the past few years. While limited demand is generally expected to increase the value of housing, shortages can actually cause values in some areas to drop, because homeless people may cluster in some areas and lower income residents may leave the community if they are unable to find a place to stay to get on their feet.
The city has recently pledged to use state and federal grants to create three new complexes to expand affordable housing units. These units should increase the quality of life for many residents in the community, which could in turn drive values of other properties.
Columbus Housing Market Expected to Thrive in 2015
The Columbus housing market has risen sharply over the last couple of years. The rebound is expected to continue through 2015, due to many local government initiatives. As a result, the next RealtyTrac report will likely show that prices have risen sharply.