The greater Columbus, Ohio, market is quickly becoming one of the nation’s fastest growing areas. Early this year, Intel announced its plan to invest in Ohio as the new site of two cutting edge chip factories. With construction beginning in the Columbus suburb of New Albany (a $20 billion investment in the initial phase), the Columbus metro area is preparing for intense economic impact and a forever-changed market. According to Intel, this decision will influence the state of Ohio immensely; "As the largest single private-sector investment in Ohio history, the initial phase of the project is expected to create 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and to support tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners" (Intel). While the Columbus area has seen growth in several local sectors over the past decade, Intel suggests that this profound impact will reach much further than just Ohio. The investment has already attracted several suppliers and ecosystem partners to aid in supporting Intel's operations, and their investments will further improve the U.S. Semi-conductor system on a national scale (Intel).
To gain real insight into Intel’s potential impact on the region, greater Columbus residents need look no further than Intel's chip plant in Chandler, Arizona. Production began at the Arizona Intel plant in 1980, when the agricultural city of Chandler had a population of 10,000. Now, in part to Intel's investment, Chandler, Arizona, is home to more than 270,000 people and provides a significant economic boost to the region. According to a 2019 report, Intel contributed a total of $3.89 billion to Arizona's GDP (Phoenix Business Journal).
Amidst the big Intel news, the City of Columbus continues to work to promote job and population growth, having signed an economic development agreement this year containing a strong job growth incentive, specifically, a "40% break on income taxes for the next 25 years on new jobs in the district" for Ohio State University’s Innovation District. The University pledged to create "12,000 net new jobs, create about 300 affordable housing units out of 1,500 new residential units overall, and involve minority- and women-owned construction companies in the 270-acre project southwest of Lane Avenue and Kenny Road" (Columbus Business First). This is in addition to the more than $700 million in construction in progress surrounding Ohio State University’s campus.
Bringing these new jobs to the region will require many more residents, and the accelerated population growth will present several obstacles for housing development to keep the city’s economy running smoothly. According to Realtor.com, Columbus is among the top 10 housing markets projected to see the most growth in 2022, predicting sales will increase by 13.7% and prices will rise by 6.3%. As more residents try to find suitable housing the market supply will most likely continue to be constrained, even with rising interest rates.
With a history of steady population and economic growth, the greater Columbus area continues to put itself on the national stage with the significant financial commitments made by both a new-to-the-region company in Intel and a long-time Columbus ambassador in The Ohio State University. Thanks to these companies and institutions, along with many local and regional companies, the greater Columbus area will continue to grow and thrive for many years to come.
For more information on the greater Columbus area, please contact Daniel Clark, Vice President and Manager, Columbus Office, at Goodman Real Estate Services Group.