Understanding Ohio’s Housing Crisis

Ohio’s housing market, particularly in Columbus and central Ohio, is experiencing a difficult time, with reduced sales and rising prices pushing hopeful buyers out of the game. Despite the statistics, it remains a seller’s market, but the housing problem is piling more pressure on lower income and middle-class families across the state as they struggle to find affordable homes.

The National Association of Realtors (NAR) reports that although median sale prices hit record highs last year, there was a noticeable drop in home sales nationwide last year—the lowest in over three decades. Despite exceeding the national average, Central Ohio's overall sales decreased by 11.8 percent.

The Columbus and Central Ohio Regional MLS recorded 31,885 sales in 2022, but by 2023, this number dropped to 27,987—the lowest number of sales in a year for nearly a decade. And as mortgage rates more than doubled within the year, peaking at over 8 percent by August, the cost of borrowing surged. Buyers faced increased borrowing costs, and sellers saw fewer people interested in their properties.

So, what does this mean for house hunters?

Home buyers, especially those on a tight budget, may struggle to get their foot in the housing market door. And in these times where many are struggling to pay the bills, families may have to set aside more of their budget for either saving for a home or paying a higher mortgage. And the increased competition means buyers will need to act quickly to secure their dream home or risk getting caught in a bidding war. On a positive note, the rise in property values does mean that buying a house now could bring significant returns in the future.

But now is not the time to wait for house prices to drop. While across the country, there has been talk of possible price decreases, Ohio remains strong, and it’s unlikely we’ll see a drop in prices any time soon. Zillow listed Columbus as the third-hottest housing market (behind Buffalo, NY, and Cincinnati). The housing market is linked to the economy and population growth, and currently, the state’s economic forecasts are optimistic and employment rates are on the rise, exceeding the national average. Real estate app Houzeo predicts mortgage interest rates will stabilize by the second half of 2024, the number of home buyers will rise, and house prices will continue to increase until this “low supply–high demand dynamic” shifts.

The market might slow down, but it’s unlikely to crash, and right now could be the most cost-effective time to buy. Hang on for too long and you may price yourself out of the property market.

If you’re looking for professional guidance or simply want to stay informed about the latest housing market trends, get in touch and let’s chat. What qualifies me to give advice? Unique and extensive knowledge and experience, more than fifteen years in the commercial and residential construction industry, and a proud history in this region.