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Land keeping up with housing costs?

Smawgunner2

Smawgunner2

Active Member
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Athens County
I was talking to a city planner about the house boom. She said it was clearly a supply and demand issue. Dublin Ohio had something like a 20% need but 5% availability. I don’t know how that translates into hunting properties with no livable structure or like mine…less than desirable building sites. We’re thinking of selling but want to test the waters.
 
I don't see land ever going down over the long haul. Might have a little up and down price per acre happen. My opinion? You'll get more out of it in 10-20 years than you will now. Again, just my opinion.
 
Vacant land always rises maybe a point or two each year...almost enough to keep up with inflation. It comes down to location and access to jobs.
 
Intel is driving a lot of the hysteria in central Ohio at the moment. Land prices are up over $3-4K an acre without minerals again, so it's trending up towards peak Shale boom pricing again. The new tactic with raw land sales is to list it for an attractive price to start a bidding war. We just lost out on the 51 acres next to our farm for this very reason. Listed at $1,700/acre and sold for at least $3K. We offered 75% over listing and still got beat out. The realtor straight up told us that was the tactic, and it worked. Had they listed it for what they sold it for, it would have sat a while. They took in 24 offers in 48 hours and had it under contract in 5 days with that approach.

Clay Showalter said:
I want to know what has caused the sudden demand ?
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It's not sudden around here. Housing inventory has been a historic low levels here for almost 3 years now. We live in a county with 60K people and there's only 60 homes for sale at the moment. It's just like the used truck market, sure I could make $ on my truck, but what would I buy to replace it with?!?

New home builds are not hitting the market because they're occupied before the first spade of dirt is moved. This isn't the early-2000s when spec homes were all the rage. Locally, we have no home developers left. We basically have 2 people building homes and the rest that did or could, are doing roofs or remodels. One GC group said they make far more money doing a roof or two a week than building a house. This is a common trend that's not unique to our area.

This whole thing has caused a massive shift in my work. I spend more time trying to fix the residential housing crisis now than I do on traditional economic development issues. I'm closing a deal to create 50-75 jobs at the moment and I'm terrified those employees won't have any place to live. I've got a real "chicken or egg" situation on my hands!
 
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bowhunter1023 said:
The new tactic with raw land sales is to list it for an attractive price to start a bidding war. We just lost out on the 51 acres next to our farm for this very reason. Listed at $1,700/acre and sold for at least $3K. They took in 24 offers in 48 hours and had it under contract in 5 days with that approach.
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That's a crafty way to create demand and realize highest price sale with quick turnover. Nice tactic.
 
Clay Showalter said:
I should not have said sudden, I meant in the relative short term, 3-5 years. People have always needed housing, it just seems that now there are more people than houses, this goes for rentals as well.
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This is my take on it, so take it with a grain of salt. Covid for all of its good bad and ugliness. Showed what’s important too people. Stuck at home, working from home showed what was flawed in their perception of what a home is/was. So people started upgrading. Either in the form of more room, or less room but newer. Interest rates were pretty much at an all time low, and money was flowing in at all directions.
How many new out of staters showed up either upgrading employment or fleeing overreaching state and local governments? Then there’s the downside of immigration policies or lack there of. A combination of all the above plus the 3 years of unprecedented grow under Trump, where housing sales were skyrocketing anyway.
Then you have as in Joe’s (@Jackalope) case, he can work at home and live wherever he wants, there’s probably a lot of folks doing that as well.
How many folks retired early because of all the BS of the last couple years? Retired and moved on too newer digs? It all adds up.
 
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You've also got more people buying homes to rent using VRBO and AirBNB. Those homes would have traditionally been on the market but now you throw a could of thousand into furnishings and you rent it, at <50% occupancy and still make money over the mortgage with the historic low rates of the last few years.
 
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Hedgelj said:
You've also got more people buying homes to rent using VRBO and AirBNB. Those homes would have traditionally been on the market but now you throw a could of thousand into furnishings and you rent it, at <50% occupancy and still make money over the mortgage with the historic low rates of the last few years.
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Is there really a big demand for those in Ohio? I can see around the high vacation areas, but Ohio?
 
Hedgelj said:
You've also got more people buying homes to rent using VRBO and AirBNB. Those homes would have traditionally been on the market but now you throw a could of thousand into furnishings and you rent it, at <50% occupancy and still make money over the mortgage with the historic low rates of the last few years.
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The landlord thing has become huge...
 
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J said:
Is there really a big demand for those in Ohio? I can see around the high vacation areas, but Ohio?
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Screenshot_20220417-111207_Airbnb.jpg

Athens Ohio for a full week rental in May June or July for my family of 5.

300+ places
 

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190 places around my area of mohican state park for the same time period.

207 in Canton Ohio which other than the McKinley monument and the Football HOF doesn't have much tourism.
 
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