Housing Permits Plummeted in Central Ohio Last Year, Reveals BIA Report

In 2023, Central Ohio witnessed a concerning 17% drop in the issuance of housing permits, marking the lowest level observed since 2019. This decline encompassed both single-family and multifamily permits, with single-family permits experiencing a 13% decrease and multifamily permits plummeting by 19%, as revealed by a recent report from the Building Industry Association of Central Ohio (BIA).

Jon Melchi, Executive Director of the BIA, expressed a lack of surprise regarding these figures, attributing them to macroeconomic factors such as rising interest rates and inflationary costs affecting both consumers and construction companies alike. Melchi emphasized the importance of addressing issues within local control, particularly in land use and zoning regulations.

The report's findings underscore the severity of the housing situation in the region, already grappling with a housing crisis. A study commissioned by the BIA in 2022 projected an annual need for approximately 14,000 new housing units through 2050, a figure now eclipsed by the updated study's estimate of up to 19,300 new units per year over the next decade.

Melchi highlighted a persistent trend of under-building in the region over the past 15 years, attributing it to policies deemed inhospitable to housing development. The median price of newly constructed homes surged by 10.4% in 2023, further accentuating the challenges faced by prospective homebuyers.

Erin Prosser, Deputy Director of Housing Strategies for the city of Columbus, emphasized ongoing efforts to address regulatory and cost barriers to housing construction, including recently adopted policies and impending zoning changes. Prosser stressed the necessity of regional collaboration to tackle the housing shortage effectively.

Comparatively, Central Ohio lagged behind peer cities in housing construction, with Austin, Nashville, Charlotte, Raleigh, and Indianapolis outpacing the region in permit issuance. Melchi underscored the frustrations faced by BIA members, citing instances such as a failed referendum in Berkshire Township that hindered housing development.

Melchi called for commitment from state and federal governments to provide funding for essential infrastructure conducive to housing expansion. Despite the challenges, BIA members remain optimistic about finding innovative solutions to address the pressing housing needs of the region.

Source: Biz Journals - Columbus