Trends & News Columbus Ohio Real Estate Market Trends 2020 by Hamza Abdul-Samad December 7, 2019December 5, 2019 by Hamza Abdul-Samad December 7, 2019December 5, 2019 Among the national and Midwest rental markets, the Ohio housing market has consistently been the best of the best. The state’s capital, Columbus, in particular, has been a top real estate destination in 2019. This begs the question: How is the Columbus housing market projected to perform in 2020? More specifically, what are the Columbus Ohio real estate market trends that investors should be aware of? Keep reading to find out! Related: Will Midwest Real Estate Make You Money in These Cities? Columbus Ohio Real Estate Market: Mashvisor’s Data Understanding the Columbus Ohio real estate market trends for 2020 will be difficult without access to its market data. With Mashvisor, Columbus real estate investors have nothing to worry about. Mashvisor’s investment property calculator can analyze the Columbus housing market in no time. Everything from Columbus house prices to optimal rental strategies in the city can be obtained using Mashvisor’s real estate analytics. To learn more about how Mashvisor can help you find the best Columbus houses for sale, click here! For now, take a look below at the data on the Columbus real estate market. Pricing Median Property Price: $220,090 Price per Square Foot: $132 Price-to-Rent Ratio: 15 Traditional Investing Rental Income: $1,214 Cap Rate / Cash on Cash Return: 1.8% Airbnb Investing Rental Income: $2,247 Cap Rate / Cash on Cash Return: 5.2% Occupancy Rate: 55.7% Is Airbnb Legal in Columbus, Ohio? You may have noticed that the data of Airbnb Columbus has been included above. Naturally, you may be asking: Is Airbnb legal in Columbus, Ohio? Related: Your Real Estate Investment Guide to Airbnb Rental Properties: Where Is Airbnb Legal? Fortunately, the answer is yes, Airbnb is legal in the Columbus housing market. There are multiple Airbnb regulations that hosts must adhere to, which you can learn about in-depth on the Airbnb Columbus Help Page. However, the most notable Columbus Airbnb laws pertain to registration and taxes: Short-Term Rental Registration Airbnb hosts are required to register their Columbus short-term rentals at the Department of Public Safety. A short-term rental application, along with an application fee of $20, and permit payment are required for registration. If the short-term rental is a non-owner occupied rental, the permit cost is $150. If the property is owner-occupied as a primary residence, the fee is $75. Once the registration is complete and the host obtains a registration number, it must be displayed on the property’s listing page on Airbnb. Short-Term Rental Taxes When Airbnb was legalized in the Columbus Ohio real estate market in January 2019, a tax was enforced on Airbnb hosts. The tax is the city’s Hotel/Motel Tax, at 5.1%, which applies to all Airbnb Columbus short-term rentals. Columbus Ohio Real Estate Market Trends for 2020 There are four real estate market trends that will heavily influence the Columbus housing market forecast for 2020. These include affordability, appreciation, a strong economy, and the success of Airbnb Columbus. Real Estate Property Will Be Affordable As is common in the Midwest real estate market, the Columbus Ohio real estate market is exceptionally affordable. With a median property price of $220,090, Columbus is considerably cheaper when compared to the national median of $299,400. Not only are Columbus house prices inexpensive, but the city’s cost of living is as well. Columbus has the 52nd lowest cost of living in the US, which is 14.5% lower than the national average. With such a low cost of living and a high percentage of renters (about 56% of the city’s residents), the Columbus housing market will experience tenant growth and demand for Columbus rental properties in 2020. The Columbus Ohio real estate market is notably cheaper than many other cities in the state. According to NerdWallet, based on the state average household income of $54,000, Columbus’ cost of living is more affordable than that of: Findlay (by 6%) Cleveland (by 5%) Akron (by 2%) Cincinnati (by 1%) Properties Will Experience Significant Appreciation Columbus investment properties will also benefit from a high real estate appreciation rate in 2020. In the last 10 years, the Columbus Ohio real estate market has been in the top 30% for national appreciation, according to NeighborhoodScout. Over the past year, Columbus house prices increased by 7.0%, which is exceptionally above the national rate. In 2020, Zillow predicts that properties in the Columbus Ohio real estate market will appreciate by 4.5%. A Strong and Growing Economy Supports the Real Estate Market The city’s economy is considered strong and diverse, with the most popular industries including education, banking, defense, food, and health care. The 2016 GDP of the Columbus metro area was $130.8 billion, the second-highest in Ohio and the 29th highest in the nation. Columbus is also well-known as one of the best cities for young professionals, entrepreneurs, and startups. With this economic success projected to continue, the traditional Columbus real estate market will further strengthen in 2020, making it one of the best places to invest in real estate. Airbnb Columbus Will Continue to Be Profitable for Hosts Traditional investing is not the only profitable strategy in the Columbus Ohio real estate market. Airbnb Columbus has been nothing short of phenomenal during the last 2 years. In 2018, Columbus was the hottest Airbnb city in the Midwest. Airbnb hosts generated over $11.7 million in Columbus and welcomed over 107,000 guests, which was double the number of the previous year. A large portion of this success is due to Ohio State University football games, which contributed $1.2 million in Airbnb revenue. While 2019 figures have not been released as of yet, it is expected that Airbnb Columbus will continue its success as one of the best cities for Airbnb in the Midwest into 2020. Find a Profitable Airbnb Investment Property Related: Short-Term Rental Strategy: Best Cities for Airbnb Rental Income Best Neighborhoods in Columbus for Traditional Rentals So, where should real estate investors purchase Columbus investment properties for traditional renting? According to Mashvisor, the best neighborhoods in the Columbus Ohio real estate market are North Franklinton and Franklinton. North Franklinton Pricing Median Property Price: $85,940 Price per Square Foot: $132 Price-to-Rent Ratio: 15 Traditional Investing Rental Income: $1,214 Cap Rate / Cash on Cash Return: 1.8% Franklinton Pricing Median Property Price: $151,075 Price per Square Foot: $104 Price-to-Rent Ratio: 12 Traditional Investing Rental Income: $1,060 Cap Rate / Cash on Cash Return: 3.9% Best Neighborhoods in Columbus for Airbnb Rentals What about for Airbnb Columbus? According to Mashvisor, the best neighborhoods in the Columbus Ohio real estate market for Airbnb are Fairgrounds and Mount Vernon. Fairgrounds Pricing Median Property Price: $151,250 Price per Square Foot: $74 Price-to-Rent Ratio: 14 Airbnb Investing Rental Income: $1,595 Cap Rate / Cash on Cash Return: 11.3% Occupancy Rate: 48.4% Mount Vernon Pricing Median Property Price: $217,090 Price per Square Foot: $84 Price-to-Rent Ratio: 16 Airbnb Investing Rental Income: $2,084 Cap Rate / Cash on Cash Return: 8.9% Occupancy Rate: 53% All in all, the Columbus Ohio real estate market will be profitable for traditional and Airbnb rental strategies. With affordable real estate and cost of living, a strong economy, high appreciation rate, and Airbnb profitability, there will be plenty of reasons to invest in Columbus rental properties in 2020. To start searching for Columbus houses for sale, click here to start your 14-day FREE trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsColumbus OHNeighborhoodOhioTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post How to Give a Great Sleep Experience to Your Airbnb Guests Next Post Why Investing in Multi Family Homes Is a Must for 2020 Related Posts Houston Housing Market Predictions 2020 How Will New York’s Tuition-Free Education Policy Affect the Housing Market? What Are the Expected Residential Real Estate Trends in the US Housing Market for 2018? Impact of Exchange Rates on Real Estate How Technology Can Transform Your Real Estate Investment Business Is There Really a Best Time of Year to Buy a House for Real Estate Investing? Is the US in a Real Estate Bubble in 2022? 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