The Complete Guide to the Columbus, Ohio Real Estate Market

Posted: 5/10/2022

Last Updated: 6/1/2023

Columbus Neighborhood Breakdown

Columbus, Ohio has become a sweet spot for out of state investors due to the population growth year over year for the last decade that is much larger than the national average. With a median price of $159 per square foot (Realtor.com), it is common for investors located in more expensive and lower cash flow markets to take a serious look and invest in Columbus, Ohio. In 2022 alone,

- 30,000 new jobs coming to the Greater Metropolitan area! 

- 4,000 new single family homes built in Columbus (there is already a shortage...) and this disparity is great for property values over time. Comparable cities such as Indianapolis, Indiana and Raleigh, North Carolina annually build 15,000 - 20,000 single family homes per year. This building shortage is due to the 

- price/ square foot is relatively much cheaper than other comparable cities ($159 from www.Realtor.com)

- lowest vacancy rate for multi family and single family rentals in Columbus history

With that said, the rental market here is strong and Ohio is consistently ranked in one of the top spots for being a landlord friendly state.

Map Shown Below

KEY:

GREEN = A GRADE

PURPLE = A- GRADE

BLUE = B+ GRADE

PINK = B GRADE

BROWN = B- GRADE

YELLOW = C+ GRADE

ORANGE = C GRADE

A/A- NEIGHBORHOODS

These are the high end suburbs and cost the most price / square foot. The rental real estate here will provide poorer cash flow than others but allows for a great hedge against recessions as A class areas historically get hit the least. I reviewed multi family property prices in Grandview Heights throughout 2004-2012 and the prices held up much stronger than the lower class markets.

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New Albany (43054)

Grade: A

Median Income: $117,734

Residential Property Tax Rate: 2.05%

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Dublin (43017)

Grade: A

Median Income: $109,742

Residential Property Tax Rate: 2.05%

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Upper Arlington (43221)

Grade: A

Median Income: $98,140

Residential Property Tax Rate: 2.05%

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Dublin (43016)

Grade: A

Median Income: $92,859

Residential Property Tax Rate: 2.05%

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Hilliard (43026)

Grade: A

Median Income: $89,129

Residential Property Tax Rate: 2.05%

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Westerville (43081)

Grade: A

Median Income: $82,999

Residential Property Tax Rate: 2.05%

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Columbus (43235)

Grade: A

Median Income: $80,310

Residential Property Tax Rate: 2.05%

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Polaris (43240)

Grade: A

Median Income: $77,736

Residential Property Tax Rate: 1.82%

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Blacklick (43004)

Grade: A

Median Income: $77,143

Residential Property Tax Rate: 2.05%

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Clintonville (43214)

Grade: A

Median Income: $72,569

Residential Property Tax Rate: 2.05%

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Columbus (43002)

Grade: A

Median Income: $70,303

Residential Property Tax Rate: 2.05%

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Grandview Heights (43212)

Grade: A

Median Income: $67,165

Residential Property Tax Rate: 2.05%

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Bexley (43209)

Grade: A

Median Income: $63,109

Residential Property Tax Rate: 2.05%

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Ohio State Campus (43201)

Grade: A

Median Income: $35,934

Residential Property Tax Rate: 2.05%

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Ohio State Campus (43210)

Grade: A

Median Income: $19,167

Residential Property Tax Rate: 2.05%

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Powell (43065)

Grade: A-

Median Income: $136,702

Residential Property Tax Rate: 1.82%

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Westerville (43082)

Grade: A-

Median Income: $124,348

Residential Property Tax Rate: 1.82%

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Lewis Center (43035)

Grade: A-

Median Income: $123,130

Residential Property Tax Rate: 1.82%

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Granville (43023)

Grade: A-

Median Income: $105,361

Residential Property Tax Rate: 1.45%

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Plain City (43064)

Grade: A-

Median Income: $103,125

Residential Property Tax Rate: 1.31%

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Pickerington (43147)

Grade: A-

Median Income: $102,641

Residential Property Tax Rate: 1.36%

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Worthington (43085)

Grade: A-

Median Income: $88,716

Residential Property Tax Rate: 2.05%

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Upper Arlington (43220)

Grade: A-

Median Income: $77,619

Residential Property Tax Rate: 2.05%

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B+/B/B- NEIGHBORHOODS

B neighborhoods are a great spot to buy rentals and take advantage of the appreciation Columbus offers. They can cash flow much better than the A class assets and generally have a bright upside towards growth as the bulk of the median working population lives here. A lot of B class areas are in Columbus Opportunity Zones which offer the benefits of tax abatements, rehab and purchase price grants from the city and more which rapidly helps the appreciation in these zones.

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Johnstown (43031)

Grade: B+

Median Income: $79,459

Residential Property Tax Rate: 1.45%

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Olde Town East (43215)

Grade: B+

Median Income: $66,000

Residential Property Tax Rate: 2.05%

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East of Linden (43219)

Grade: B+

Median Income: $37,316

Residential Property Tax Rate: 2.05%

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Franklinton (43222)

Grade: B+

Median Income: $27,266

Residential Property Tax Rate: 2.05%

___

Pataskala (43062)

Grade: B

Median Income: $84,772

Residential Property Tax Rate: 1.45%

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Gahanna (43230)

Grade: B

Median Income: $83,084

Residential Property Tax Rate: 2.05%

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Alexandria (43001)

Grade: B

Median Income: $74,077

Residential Property Tax Rate: 1.45%

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Grove City (43123)

Grade: B

Median Income: $73,391

Residential Property Tax Rate: 2.05%

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Columbus (43119)

Grade: B

Median Income: $69,699

Residential Property Tax Rate: 2.05%

___

Litholopis (43110)

Grade: B

Median Income: $68,223

Residential Property Tax Rate: 2.05%

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Groveport (43125)

Grade: B

Median Income: $64,899

Residential Property Tax Rate: 2.05%

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Reynoldsburg (43068)

Grade: B

Median Income: $64,626

Residential Property Tax Rate: 2.05%

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Minerva Park (43231)

Grade: B

Median Income: $49,865

Residential Property Tax Rate: 2.05%

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Forest Park East (43229)

Grade: B

Median Income: $45,166

Residential Property Tax Rate: 2.05%

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East of Clintonville (43224)

Grade: B

Median Income: $38,264

Residential Property Tax Rate: 2.05%

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Linwood, Eastmoor, Beechwood (43227)

Grade: B-

Median Income: $38,919

Residential Property Tax Rate: 2.05%

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Southern Orchards (43206)

Grade: B

Median Income: $55,043

Residential Property Tax Rate: 2.05%

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C+/C NEIGHBORHOODS

This is where to invest if you are looking for larger cash flow up front. Out of state investors buy here and leverage rental vouchers that Section 8 provides as they can pay hundreds over the median rent for the area while also being virtually guaranteed rent. Section 8 info This is also where the opportunity for a BRRRR, cosmetic update or value add generally lies and the property price / square foot is the cheapest.

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Eastland (43232)

Grade: C+

Median Income: $124,348

Residential Property Tax Rate: 1.82%

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Brice (43109)

Grade: C+

Median Income: $61,250

Residential Property Tax Rate: 2.05%

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Valleyview, Hilltop (43204)

Grade: C+

Median Income: $49,425

Residential Property Tax Rate: 2.05%

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South of Main (43205)

Grade: C+

Median Income: $36,695

Residential Property Tax Rate: 2.05%

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King Lincoln, Woodland Park (43203)

Grade: C+

Median Income: $30,413

Residential Property Tax Rate: 2.05%

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Columbus (43228)

Grade: C

Median Income: $49,336

Residential Property Tax Rate: 2.05%

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Whitehall (43213)

Grade: C

Median Income: $43,706

Residential Property Tax Rate: 2.05%

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Obetz (43207)

Grade: C

Median Income: $46,162

Residential Property Tax Rate: 2.05%

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Gahanna (43223)

Grade: C

Median Income: $37,116

Residential Property Tax Rate: 2.05%

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South Linden, East Linden (43211)

Grade: C

Median Income: $26,724

Residential Property Tax Rate: 2.05%

*this is the opinion of my significant other and for entertainment purposes only

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Helpful Columbus Resources/Articles

Josh Investor Form

Map Shown Above

Columbus Opportunity Zone

Section 8 Information

Rolodex for property manager, contractor, lender etc. references in the Ohio market

https://www.affordablehousing.com/

https://www.dispatch.com/story/business/2022/01/21/intel-ohio-building-computer-chip-factories-licking-county-jersey-township/9173472002/

https://www.bizjournals.com/columbus/news/2022/02/01/hydrogen-car-company-hyperion-brining-700-jobs-to.html

https://www.wastetodaymagazine.com/Rumpke-to-build-recycling-center-in-Columbus.aspx

https://www.governing.com/community/america-discovers-columbus-ohio?_amp=true

https://www.dispatch.com/story/business/2022/03/03/covermymeds-gravity-among-projects-receive-new-state-tax-breaks/9322885002/

https://columbusunderground.com/kaufman-development-purchasing-franklintons-idea-foundry-sp1/

https://highlandcountypress.com/Content/In-The-News/Headlines/Article/Development-projects-will-support-1-4-billion-in-investments-in-Ohio-communities/2/73/77342
https://www.nbc4i.com/news/columbus-business-first/millers-ale-house-locations-to-be-demolished-for-new-development/

https://www.intel.com/content/www/us/en/corporate-responsibility/intel-in-ohio.html

https://www.ohiorealtors.org/blog/1632/key-realtor-backed-bill-to-rein-in-property-valuation-challenges-okd-heads-to-gov-dewine/

https://news.wosu.org/2021-10-21/city-of-columbus-unveils-766-million-capital-improvements-budget

https://www.restaurantbusinessonline.com/operations/chipotle-opens-big-corporate-office-columbus

https://www.prnewswire.com/news-releases/jobsohio-partners-with-ohios-investment-grade-port-authorities-to-boost-port-authorities-bond-capacity-throughout-ohio-301406648.html

https://opportunitydb.com/2021/11/chris-knoppe-164/

Sources

https://www.biggerpockets.com/member-blogs/4704/42419-cleveland-neighborhood-grades

https://www.city-data.com/nbmaps/neigh-Columbus-Ohio.html

https://www.bestplaces.net/find/zip.aspx?st=oh&msa=18140

https://smartasset.com/taxes/ohio-property-tax-calculator#qtqt0jWHmF

https://www.incomebyzipcode.com/ohio/

https://www.niche.com/?ref=places-to-live

https://www.neighborhoodscout.com/oh/columbus/real-estate

https://www.trulia.com/n/oh/columbus/east-beechwold/109160/

https://www.redfin.com/

https://www.rockethomes.com/

https://mymaps.google.com