Study Shows over 1,000 Households Priced Out of Housing Market in Columbus with Each $1,000 Price Increase
COLUMBUS, Jan. 14 - Ohio is the third most at risk state in the nation in terms of pricing out home buyers and a $1,000 increase in the cost of a newly-built home pushes 1,335 prospective buyers out of the market in Central Ohio according to a recent study by the National Association of Home Builders (NAHB).
The study defines pricing out as “based on their incomes, these households would be able to qualify for a mortgage to purchase the home before the price increase, but not afterward”.
Jon Melchi, Executive Director of the BIA of Central Ohio, stated “While many cost drivers, such as increases in lending costs, labor shortages and material inflation are national challenges, the BIA urges our local officials to attack the issues that we can control, such as restrictive zoning, building fees which far outpace other cities in the Midwest and frivolous design requirements which add to the cost of construction while providing little or no value to a homeowner and in their totality price thousands of people out of the market.”
The NAHB study comes on the heels of a Housing Need Assessment report by the BIA of Central Ohio, which demonstrates the need to build an additional 8,000 housing units annually in the Columbus MSA in order to meet projected demand and continue the economic growth of the region.
Melchi added, “We know from the BIA study that housing costs have increased five times more than the annual growth rate in income in our region. We now know that how a small increase in price can have a detrimental impact on those trying to grow within our region or come to our community. Our inability to meet housing demands is going to endanger the economic viability of Central Ohio. “
The NAHB Study determined that a $1,000 increase would price-out 127,560 prospective buyers nationally.
The full NAHB study is available at www.nahb.org/PricedOut2019.
The full BIA study is available at www.biahomebuilders.com.
About the Building Industry Association of Central Ohio: Since 1943, the Building Industry Association of Central Ohio has represented single- and multi-family homebuilders, developers and remodelers throughout the area. The BIA Parade of Homes has been wowing hundreds of thousands of visitors for over 65 years, via its tour of new homes featuring the latest and greatest in home design and decor. Each year, central Ohio's premier builders showcase their homes, offering Parade guests the opportunity experience the most current trends firsthand. BIA members will continue this tradition, working to bring even more innovation to the housing industry.
About NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 700 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.