COLUMBUS – Despite central Ohio’s standing as one of the hottest, and most affordable, real estate markets in the nation, some observers are worried that the region’s housing shortage could have an impact on the larger economy.
The average long-term U.S. mortgage rate climbed further above 7% this week to its highest level since 2001. High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford.
Amy Riegel, with the Coalition on Homelessness and Housing in Ohio, explains that a nationwide housing shortage and rising interest rates have put home ownership out of reach for more Ohioans, exacerbating a housing crunch that could impact employers coming into the state who need workers.
“Our worst fear is that these great companies will bring jobs to Ohio and will be unable to fulfill those workforce needs. And that our communities will be left in a position that is worse than it is today,” she said.
The high price of homes is squeezing the rental market in turn. Rent is higher than in any year on record in the state, Riegel said.
”Of the ten jobs that the most people occupy in the state of Ohio, only two of them are paying enough for a person to be able to afford that modest two bedroom apartment,” she said.
Realtor.com this week named Gahanna is the “hottest ZIP code in the U.S. for 2023,” citing the Columbus suburb’s pleasant lifestyle and affordable housing.
This is the sixth time in the last seven years that a central Ohio community has been featured in the website’s top 10. Worthington has made the list twice. So have Lincoln Village, Reynoldsburg and Hilliard.
The website’s editors say the greater Columbus area boasts “the amenities and quality-of-life advantages of a larger town, but at a lower price.”
Homes in the 43230 ZIP code were priced 12.7% below the national median in June, the website reported.