Columbus Home Construction Falling Short of Projected Demand

New Home Construction Metro ColumbusIf you moved to Metro Columbus in recent years, you’re in good company! The population of Columbus grew by more than 10% from 2010 to 2017. The Columbus Dispatch reports that seven of the fastest-growing cities in Ohio are located in or near Franklin County. With a current growth rate of 1.8%, the number of residents calling Columbus home is projected to keep rising.

At the same time, a study by the Building Industry Association of Central Ohio shows that new construction is falling well short of housing demand. According an article published in the Columbus Dispatch, only about 8,400 new residences were added to the Columbus Metro during 2018. But to keep pace with demand, builders should be adding between 14,000 and 21,000 new residential units each year.

The dearth in new construction isn’t unique to Columbus. Nationwide, home builders who survived the Great Recession have struggled with a combination of industry challenges, including a shortage of skilled laborers, a high cost of land acquisition, rising material prices, and complex regulations. The end result is limited production and higher-priced homes.

The situation doesn’t have a quick remedy. Proposed projects in Central Ohio, such as a 175-home development in Canal Winchester, and a mixed-use plan with apartments and commercial space near Powell are still in discussion. Other projects, like the European Village development proposed in Dublin, are small in scale and exclusive in price. No matter the plans or price points, it can take years for a development to achieve local approval and break ground.

This is one of the reasons why home prices in Central Ohio are likely to keep rising in the months and years ahead. The strength of our regional economy will continue to draw new residents, and the imbalance of home supply and demand will keep upward pressure on the market.

Columbus area home buyers need to be well-prepared and well-represented! As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.

Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!

Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!

Andrew Show
Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services, www.buyershome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax

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