Central Ohio's housing construction showed only a modest increase in 2024, yet it remains significantly lower than what experts say is necessary to tackle the region’s growing housing shortage.

Permits were issued for a total of 10,474 new residences across the Columbus area, slightly surpassing the 10,196 issued in 2023, according to the Building Industry Association of Central Ohio (BIA), which relies on data from housing research firm Zonda. However, the figure is still far below the 14,000 to 19,000 units needed annually to meet demand, as highlighted in a 2022 report.

“This level of home construction is simply not enough to support our region’s population growth and economic expansion,” said BIA Executive Director Jon Melchi in a statement. “The shortage is driving up home prices and rents, increasing housing instability, and making it harder for employers to attract and retain workers.”

Although single-family home construction saw a slight uptick last year, the number of multi-family units—such as apartments and condominiums—plummeted. In 2024, permits were issued for just 4,750 new apartments and condos, nearly 2,000 fewer than in 2023. The drop is attributed to rising construction costs, including borrowing rates and land prices, which have made multi-family projects less financially viable for developers.

Despite the ongoing demand for housing in the region, the construction rate is still far behind cities of similar size, such as Nashville (22,947 new homes), Raleigh (19,902), and Indianapolis (12,061). In comparison, Columbus’s housing market remains significantly more expensive, with new homes having a median price of $497,450, compared to $419,945 in Nashville, $430,250 in Raleigh, and $375,000 in Indianapolis.

The median price for existing homes in the Columbus area also reached a record high of $319,900 last year, marking a 6% increase from 2023 and $110,000 more than five years ago. This price spike, alongside a shrinking housing supply, is contributing to growing concerns about housing affordability in the region.

The BIA has pointed to restrictive zoning policies and insufficient infrastructure as key factors behind the sluggish pace of construction. In response, the association has called for municipalities to update their zoning regulations and invest in expanding infrastructure such as roads, sewers, and water lines to help accelerate the development of new homes.

“The demand is there, but outdated policies and infrastructure bottlenecks are holding back production,” Melchi said. “If we don’t address these challenges, we risk losing economic opportunities to more housing-friendly markets.”

At the Beulah Park development in Grove City, construction of the final phase is underway, which will include nearly 1,000 residential units ranging from apartments to townhomes and single-family homes. Despite this, the broader trend in the region’s housing development is concerning for experts, particularly as construction costs continue to climb, and the region struggles to keep up with the growing need for affordable housing.

While Columbus has made some strides in increasing housing construction, including efforts to revamp its zoning code, many surrounding municipalities have been slower to embrace necessary changes. Without a unified effort from all local governments to update policies and infrastructure, experts warn that Central Ohio could miss the opportunity to address its housing crisis effectively.

The Impacts of Slow Construction on Central Ohio’s Housing Market

The slow pace of homebuilding in Columbus not only exacerbates the ongoing housing affordability issue but also risks stalling the region’s economic growth. As the city continues to face rising demand for housing, the lack of affordable options has forced many residents to either leave the area or settle for subpar housing conditions. The economic strain of this shortage is also being felt by businesses that are struggling to find affordable housing for employees.

As the demand for homes continues to rise, particularly in the central Ohio region, experts believe it is critical for local governments to adjust their zoning policies and improve infrastructure to allow for the rapid construction of new homes. The current shortage is pushing home prices to unsustainable levels, which in turn affects both residents and potential newcomers to the area.

Looking Toward Solutions: Updating Zoning and Expanding Infrastructure

As Central Ohio grapples with this ongoing housing crisis, the BIA urges local officials to take immediate action to update zoning codes and address infrastructure issues to allow for more housing development. If local municipalities do not take the necessary steps to support increased housing production, experts worry that the region’s housing market will continue to struggle, potentially losing out on the economic opportunities that come with a growing population.

With a focused effort from local government and developers, however, there is hope that Columbus and surrounding areas can better meet the growing housing demand and stabilize the region’s housing market. The Beulah Park development is a good example of what’s possible when the right investments are made, but it will take widespread collaboration across Central Ohio to make substantial progress in solving the housing crisis.

Conclusion: A Need for Collaboration and Action

The slow pace of construction and the rising costs in the Columbus housing market illustrate a deeper issue that requires immediate attention. While steps have been taken to address some aspects of this problem, a broader, coordinated effort among local governments, developers, and residents is necessary to ensure that future housing development keeps up with the growing demand.

As the city faces increased pressure to find solutions to its housing shortage, the region’s leaders must act quickly and decisively to ensure the long-term success and affordability of Central Ohio’s housing market.

Originally reported by Jim Weiker in The Columbus Dispatch.