Rents are outpacing wages in Metro Columbus, according to a report published by Columbus Business First. The difference between rent increases and wage increases can be described as an “affordability gap.” While this gap has existed for decades, it has widened in the past several years.
Here’s a look at the situation.
Since 1980, Columbus rents have risen by 31%, while wages have grown by an inflation-adjusted 11%. This gives Columbus an “affordability gap” of 20%.
Other Ohio cities have wider gaps in rent affordability. For example, Cleveland has an affordability gap of 32%, and Cincinnati has an affordability gap of 28%.
Let’s take a closer look at Metro Columbus rent trends. According to RentJungle, a one-bedroom apartment in the City of Columbus rents for an average $876 a month. Two-bedroom apartments rent for an average of $1064.
The average rent for a one-bedroom apartment increased by 11.9% in the past six months. The average rent for a two-bedroom apartment increased by 3.8% during the same period. What keeps the rent affordability gap from being worse, is that Metro Columbus wages increased by an average of 6.2% during 2015, according to the U.S. Labor Department.
Are landlords being greedy? Probably! After all, the objective of a landlord is to charge the highest rents the market will bear, within an acceptable vacancy rate. As long as the Metro Columbus economy remains healthy, and housing demand remains strong, rents will continue to climb.
The exception might be the high-end rental market, which has been overbuilt in some posh areas. In these cases, we are seeing signs of above-average vacancies, which could temper rent increases in the upper price tier.
Becoming a homeowner is the best way to escape the ever-increasing cost of rent! And by becoming a Buyer-Client of Buyer’s Resource Realty Services, you’ll be assured of exclusive buyer representation to protect your interests, along with a superior level of service and local expertise.
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
