Prices Rise for New Construction Homes in Central Ohio | Columbus Ohio Real Estate | Buyer's Resource Realty Services

Prices Rise for New Construction Homes in Central Ohio

Central Ohio home builders see plenty of opportunity in today’s housing market. Home demand is high, home prices are rising, and mortgage interest rates are still low. But while market conditions are in their favor, home builders are finding it difficult to meet demand in affordable price ranges.

Here are some examples why from the Columbus Dispatch, along with advice from our own experience!

Land costs are rising. Five years ago, the average cost for a Central Ohio lot was $65,000. In 2016, the average cost for a lot increased to $83,000. Builders say that restrictive zoning is part of the problem.

Labor costs are rising. The construction industry lost thousands of skilled laborers during the Great Recession, and many of them haven’t returned to the career. Nor are young adults flocking to the trade. Labor wages have increased, but there’s only so high a home can be priced to cover them.

High-end materials are in demand. Builders say that today’s buyers expect high-end touches like granite countertops, hardwood flooring and stainless steel appliances. These add expense.

Other costs of doing business are rising. Fees, permits, utility costs and insurance costs have marched steadily upward.

Consequently, the average price of a new construction home in Central Ohio reached $334,000 in 2016. Meanwhile, new homes accounted for just 7.9% of all Central Ohio home sales during the same year. In the pre-recession boom years, new homes accounted for about 25% of all home sales. It isn’t that new homes aren’t selling these days; builders have been producing fewer homes.

These are just some of the reasons why new home construction won’t be a solution to lean home inventories by itself. And with prices rising, newly-built homes could be out of reach for many first-time buyers.

If you are interested in buying new construction, be sure to contact us first and have the representation of Buyer’s Resource Realty Services! We will negotiate lot selection, price and upgrades on your behalf, and protect you with contingencies that allow for two independent home inspections. And because new homes are not without defect, we ensure your purchase contract covers remedies and repairs.

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.

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, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
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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