How a tech boom and new policy are fueling multifamily investment in Columbus, OH
February 10, 2024
Dubbed the tech capital of the Midwest, Columbus has gained attention from investors due to its establishment as a thriving tech hub and its sustained population growth.
With major companies continuing to show their commitment to the market, and substantial government subsidies expected to positively impact tech companies, we foresee significant growth potential in the coming years.
Here are the factors we are looking at in this region.
Columbus is prospering as a major tech hub
The Columbus Metro Area emerged as a prominent corporate hub in recent years, attracting tech giants like Google, Meta, and IBM. The region continues to see significant investment and transformative developments, exemplified by a sprawling $20 billion mega-site for the production of semiconductor chips currently being built by Intel.
Intel’s large scale project is slated to be on the list of recipients of new subsidies from the US government, which would provide up to $5 billion to manufacturers in the next phase of the CHIPS and Science Act, as part of efforts to drastically reshape US chip production.1
Currently only 10% of these chips are manufactured in the US, which the government is actively seeking to change.1 The semiconductor chips power everything from smartphones, to artificial intelligence and weapons systems, and are crucial in the future of the technology industry in the US and beyond.
Intel has already committed significant resources to the area, with $3 billion invested, making the tech company one of the largest investors in the region. Hundreds of workers have been employed during the construction process and an additional 3,000 jobs are set to be created upon completion.2
Furthermore, Honda is making a significant imprint on Columbus with a $15 million investment in a cutting-edge research and production facility.3 The 25,000 square-foot center is being developed in collaboration with the Ohio State University, and further underscores the city’s position as a dynamic and evolving employment hub.
Job opportunities have fueled population growth in Columbus
Propelled by the job opportunities offered by the influx of tech corporations, Columbus has experienced consistent population growth over the past decade, witnessing a 15% increase since 2014.4 In fact, Columbus had the highest population gain in 2023 amongst big cities, according to research from Bloomberg and The Bank of America Institute.5
The unemployment rate in Columbus is ~1% below the national average, per the latest figures from the U.S. Bureau of Labor Statistics,6 demonstrating its continued resilience and economic stability.
Columbus is attracting a young, professional demographic
The city’s appeal is particularly evident among young, educated professionals, with white collar workers constituting 80% of the workforce, and a median age of 32 years in the metro area.7 This demographic further highlights the attractiveness of Columbus as a destination for career advancement and economic prospects.
Columbus is also appealing due to the high quality of life it offers its residents. As well as boasting vibrant neighborhoods that offer entertainment, shopping, and dining, the city is also in close reach of an abundance of parks, lakes, and outdoor recreation amenities. Coupled with the fact that the cost of living is 10% lower than the national average8 it is easy to see why young professionals are drawn to the area.
When also taking into consideration that home values are up 4.9% YoY9 pushing potential buyers towards cheaper rental alternatives, and that average rent is up 3% YoY,10 the multifamily sector in Columbus has the potential to be an attractive opportunity for investors. iintoo’s latest CDRE-1 offering combines an income-generating multifamily asset in Columbus, with an 8.00% APY, FDIC-insured certificate of deposit. Log in to our platform to see detailed information.
- U.S. to reportedly announce billions of dollars in subsidies for advanced chips / Yahoo: Biden admin, Sam Altman seek to raise trillions for AI chips
- Columbus Dispatch: Intel, Ohio finalize details on $600 million grant for New Albany project / Spectrum News 1: The status of the Intel plant one year after groundbreaking
- Ohio State University: Ohio State, Honda, business, state, federal leaders announce partnership for batter cell research center
- Macro Trends: Columbus Metro Area Population
- 614 Now: Columbus has the most population growth out of any metropolitan in U.S
- U.S. Bureau of Labor Statistics unemployment rates
- Point2Homes: Columbus demographics
- Payscale: Cost of living, Columbus, OH
- Zillow: Columbus Home Values
- Zumper: Average rent in Columbus, OH