If you drive around the city of Columbus today, you won’t go more than ten minutes without seeing an apartment complex currently under construction. As Central Ohio attempts to recover from a lagging economy, and young professionals continue to be turned off by homeownership, residents are choosing short-term rental options over the longer-term commitment of buying a home.
“The rental housing market in Central Ohio is the hottest it has been since 1985,” said Rob Vogt, specialist in real estate market research at Vogt Santer Insight. “This pent up demand is due to the lack of new apartment construction over the past five years and the increase in the number of households as twenty-somethings have left mom and dad’s basement, and married couples who put off divorce due to the economy follow through with their plans.”
Owning a home in the suburbs has long defined the American Dream. These days, affordable pricing and shorter term commitment are a lot more enticing to residents in the Columbus market.
“We’re able to live our dream in our rental community,” said John Zito, an insurance salesman living at The Hilliard Grand Apartments located off Hayden Run Road. “They have a pool, workout facility, and clubhouse located practically right in my family’s backyard.”
There’s also high demand for rental communities in the Short North and Downtown Columbus, which currently have an average occupancy rate above 98 percent.
“My two friends and I moved into a rental community near Victorian Village and we love it,” said 24-year-old Emily Dempsey. “Home ownership is honestly the last thing on my mind right now.”
Historically, home ownership has been viewed by many Americans as a stable long-term investment. Today, more and more people are seeing a better value in renting and the worry-free obligation of not being required to maintain a property. New apartment communities are responding to this demand by providing more innovative amenities, cementing rentals as a viable way of living in Columbus and throughout the country.
“While we expect overbuilding to occur, the impact will be felt in the lower quality apartments as renters move up to occupy newer choices,” Vogt said. “Better quality choices will likely weather the overbuilding. All of this should mean better rent deals for tenants in the next several years.”
This article was brought to you by the Schottenstein Real Estate Group.
Named both the 2006 and 2010 Developer of the Year by the Building Industry Association (BIA), The Schottenstein Real Estate Group is respected as one of the leaders in the real estate industry. We are dedicated to creating exceptional communities for living, working, shopping and entertainment. Our key personnel have developed, marketed and managed more than 10,000 for sale homes or condominiums, more than 25,000 rental units and a variety of commercial, retail, land and office projects throughout the Midwest and Florida.
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