Columbus has seen a drop in home ownership among young adults, according to a study by ApartmentList.com, published in Columbus Business First. In the age group of 25 to 34 year-old adults, home ownership has dropped by 18%.
The study covers the period of 2007 through 2014, and is based on data from the Census Bureau. During the same period, the number of renters in this age group increased by 27%. Overall, the Columbus home ownership rate has fallen from 66.2% during 2007, to 57.1% in 2016.
What the data does not tell us, is why the home ownership rate has fallen, especially among young adults. Here are some insights based on our own observations and experience!
The Great Recession, which officially lasted from December 2007 through June 2009, decimated employment and caused a housing downturn that continues to affect some homeowners. And while Columbus employment is currently strong, post-recession job growth didn’t find momentum until well into 2011.
Even as young adults found career footing, home ownership has been challenging for a number of reasons. During the early years of post-recession recovery, banks tightened mortgage underwriting criteria, making loan approvals more difficult. At the same time, young adults struggled with high levels of student debt, and tepid wage growth. The latter circumstances are still a factor for some Millennials.
Today, our mortgage environment has regained equilibrium, with the return of low-down payment programs and reasonable underwriting guidelines. According to the Columbus Post-Dispatch, Columbus has recovered well from the Great Recession, with more jobs added than what was originally lost.
In fact, we’ve recovered so well, that Central Ohio home prices have steadily increased in recent years, while the inventory of homes for sale has tightened. You can review the transitions of the Columbus real estate market by looking through our prior blog posts!
Buying a Columbus home takes good planning and financial preparation, no matter how “easy” or “hard” the market might be. There will always be ups and downs to market conditions, sometimes favoring sellers, other times favoring home buyers. Young adults, and home buyers of any age, can succeed in any market when they become our Buyer-Clients! We offer expert guidance and levels of information that simply cannot be found at typical brokerages.
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
