New build prices drastically outpace existing homes
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Central Ohio homebuyers are seeing an increasing disparity in cost between new builds and existing homes.
Why it matters: Buyers pay nearly $200,000 more for new builds as the Columbus real estate market continues rebounding from a pandemic-era housing shortage.
By the numbers: The median listing price for new construction in the Columbus metro area is $498,000, per Realtor.com data, compared to existing homes at just $309,000.
- That's a much greater disparity than the national median of $450,000 for new builds and $396,000 for existing homes.
State of play: Buffie Patterson, president of the Columbus Realtors board of directors, tells Axios "a significant shortage" of housing during the pandemic led to a spike in demand for all homes and price increases.
- As inventory rises, buyers have more options at their disposal and price increases have slowed, she says.
- Patterson notes the average timeline for a local home sale increased slightly from 24 days in 2023 to 28 days in 2024.
Between the lines: Patterson says new build communities are increasingly located outside of Columbus proper, "concentrated in more suburban and rural areas where there is available land and growth due to the entry of corporations like Anduril, Microsoft, and Intel."
- A home's age can play a role.
- New and existing homes in some suburban areas may have similar prices because the latter housing stock is newer and "still meets the needs of buyers entering the market," she says.
Yes, but: The higher prices of new builds can also be partially explained by the continued increase in building costs.