How investors affect Columbus' housing market
Why it matters: Investors like hedge funds, private equity firms or real estate investment trusts often buy homes in cash and in bulk — outcompeting average families, especially first-time homebuyers.
The big picture: Columbus' share is about 1 percentage point higher than the national rate (6.3%), per a report from real estate firm ATTOM.
The data measures entities that purchased at least 10 residential properties in a calendar year.
Sales have been trending downward nationally since a pandemic peak, but they're holding steady locally.
Between the lines: Markets attractive to investors have strong population and job growth, solid rental yields, landlord-friendly regulations, affordability and long-term appreciation potential, ATTOM CEO Rob Barber told Axios.
Columbus is one of the top U.S. markets for "mega investors," per a 2023 Urban Institute study.
Zoom in: A recent Dispatch investigation found that six national companies control more than 6,000 Columbus-area homes.
The corporate landlords: American Homes 4 Rent, Amherst, FirstKey Homes, Progress Residential, Starwood Capital and Vinebrook Homes.
American and Vinebrook have been active here for over a decade and were initially focused on the inner city, while the others entered our market during the pandemic and are targeting suburban neighborhoods.
Friction point: Carlie Boos, executive director of the Affordable Housing Alliance of Central Ohio, told the Dispatch she's concerned investors are inflating prices and limiting inventory.
Company representatives noted they own just a fraction of all homes and said they're expanding rental opportunities for families that can't afford to buy in nicer areas.
What we're watching: State lawmakers have introduced bills aiming to curb institutional investor activity in recent years but haven't made progress.
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