Would you be surprised to learn that Columbus has roughly the same population as San Francisco? Many people are. While that may be one of the few similarities between these two cities, one of the more interesting differences is that Columbus is the smarter city.
Surprised again? Columbus, not San Francisco or some other brainy U.S. city, has been named on the World's Most Intelligent Communities list by the think tank Intelligent Communities Forum (ICF) for the past three consecutive years.
The ICF appreciates that Columbus has the highest metropolitan concentration of Fortune 1000 companies in the nation, Columbus's concerted and successful effort to reverse the brain-drain that occurred there from 2005 to 2007, the ensuing job growth that resulted from these efforts and that Columbus is one of the best cities for new college graduates.
So, as you can see, there is a lot more to Columbus than Schmidt's cream puffs and the Buckeyes, although both are beloved by residents.
Another aspect of Columbus to love is its rental market. The Urban Land Institute deemed in its 2015 "Emerging Trends in Real Estate" report that Columbus is a rental market to watch in the coming year.
Q2 2015 Columbus Rental Market Update
Fortunately for local rental property owners, Columbus has continued to avoid the fates of many of its fellow Rust Belt cities by not suffering massive population and property value losses. In fact, Columbus is the most attractive Midwestern city for rental real estate investment and is the 10th most attractive city in the U.S. as a whole. It jumped an impressive three spots in the Rental Ranking Report's regional rankings in Q2 2015 and a whopping 20 spots in the national rankings.
Columbus rents jumped a whopping 9.90 percent between Q2 2014 and Q2 2015, the tenth-highest rent variance in the U.S. during that time period and almost twice as large as the national average. Columbus's moderately low vacancy rate of 5.50 percent and median age of inventory of 52 days, both almost 20 percent lower than their respective national averages, further indicate how strong demand for housing currently is there.
The demand for Columbus housing will likely continue to increase; building permits have only been issued for several thousand housing units in Columbus so far in 2015, not nearly enough to keep up with the metro's population growth. This can only lead to higher demand for existing rental units and, in turn, higher rents.
Q1 2015 Columbus Rental Market Update
The Q1 2015 Rental Ranking Report found Columbus to be the fourth best market in the Midwest for rental real estate investment and 30th best in the U.S. as a whole. Columbus benefits most from its impressive 8.43 percent rental capitalization rate, moderately higher than Q1 2015's national average of 7.18 percent for that metric. The annual job growth rate in "Cowtown," 2.54 percent, is slightly better than the national average for this metric, which serves as a strong indicator of housing demand.
We calculate that Columbus will have a shortage of around 20,000 housing units in 2016, ranking it 27th on our Future Rental Availability Index. Strong future job growth, as indicated by current job openings in the Columbus metro area, prompted us to give it a 21st-place ranking on our Job Availability Index.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the median number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Columbus rental property?
Columbus is growing economically, culturally and in terms of its population, escaping the decades of decline so many other fading Rust Belt cities have succumbed to. Its strong rental capitalization rate and above-average demand for housing, best exemplified by its low vacancy rate, indicate that the Columbus rental market is strong and worthy of investment.
Thinking about renting out a property in Columbus? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.