In case you weren’t aware, multi unit properties for sale in Columbus, Ohio has been growing at an exponential rate. Specifically, the apartment building inhabitants have been increasing heavily. From 2000-2016 there was $6.5B dollars invested in multifamily unit construction projects. This accelerating rate can be attributed to an increase in investment funds being spent on multi family unit homes for sale. This developmental boom accounted for an exact growth rate of 17% from 13.6% to 30.6% over that twenty year span.
The key economic factor driving housing demand is the labor market. With the economy shifting toward knowledge work, the demand for multi unit homes for sale has increased to match corresponding knowledge job locations. Knowledge jobs involve innovative technology, abundant information and vast quantities of data with an emphasis on continual learning and solving social problems. Disruption in the form of entrepreneurial activity, economic growth and job creation causes a global shift toward knowledge-based economies.
In Central Ohio, rental prices have risen due to an increase in demand but yet they remain affordable (Median 1 BR rental comes in at $693/mo.) Multi family units for sale in Columbus, Ohio has seen a significant boost in investment. Single family housing has dropped to half its peak level due to increased costs for labor, land, materials. Due to the fact that typical multi unit family housing arrives at a bargain rate – middle to upper income families are starting to purchase within Columbus’ affordable secondary markets.
The Mid-Ohio Regional Planning Commission (MORPC) has estimated future growth for multifamily properties for sale within Columbus, Ohio. Due to the stable economy, growing population and rent growth abundance of young tenants the Columbus’ metropolitan area could rise to as many as 1M people, 300,000 housing units, and 120,000 jobs by 2050.
There are several reasons why it would be wise to invest in multi unit homes for sale in Columbus, Ohio:
- Upward trajectory of vacancy rates
- Opportunity to improve complexes and bump rent rates
- Opportune time to add value
- Interest from out of state buyers
- Lower risk easier to obtain financing
- Buying in bulk and only going through process once as opposed to each home individually
- Smaller cost per unit shared amenities and features
- Better ability to update and increase value and property management
- Well maintained, attract and retain tenants fill vacancies quickly
- Communal spaces, laundry rooms, security cameras to positively impact tenants
- Invest a relatively smaller amount of money to increase the satisfaction of multiple tenants, while growing the overall value of your property
- Easier to maintain property at high standard and build equity
Here are a few other facts regarding multi unit housing:
- Rents and prices are up but moderated, and vacancy rates slowly increased as more new supply is delivered.
- Rising interest rates through 2018 will cause capitalization rates to increase slightly, which will put downward pressure on property price growth and slow origination volume
- Construction delays over the last few years have slowed unit completions, generally giving demand time to absorb most of the new supply.
- The slower the new supply is released to the market, the less dramatic the impact to vacancy rates and rent growth.
- The key economic factor driving housing demand is the labor market.
- Wages are increasing at the same rate in goods as well as service industries – a good sign that most workers are benefiting.
The level of multifamily development in Columbus leads the state of Ohio, and much of the Midwest, outpacing Cincinnati ($3 Billion), Cleveland ($990 Million), Detroit ($3.5 Billion), Pittsburgh ($2 Billion), Indianapolis ($4.9 Billion) and Louisville ($2.2 Billion).