Buying in Columbus, Ohio: prices, property taxes and ADDI help

#Columbus prices next to Ohio and the US

Of the 20 large cities this site covers, Columbus has the lowest median home value — and the fifth-highest effective property tax rate. That combination defines the market: the purchase price is the easy part, and the tax bill deserves as much attention as the interest rate. Most Columbus households rent: 45.9% of occupied homes are owner-occupied, against 68% across Ohio.

The city extends beyond Franklin County into small parts of Delaware and Fairfield counties; these figures cover the whole City of Columbus but not suburbs such as Dublin, Westerville or Grove City.

#The property-tax tradeoff in Franklin County

At 1.27% of value, the Columbus effective rate is higher than Ohio’s 1.22% and above the national 0.89%. On the median home that is $296 a month — $89 a month more than the same home would cost at the national rate. Each $10,000 of price adds about $127 a year in tax at the city’s rate, on top of the extra principal and interest.

Ohio property tax depends heavily on school district and voted levies, so two Columbus homes at the same price can carry different bills. The Franklin County Auditor sets values in periodic reappraisals and applies Ohio’s owner-occupancy reduction once you file for it; look up the parcel on the Auditor’s site and read the current tax bill before you offer. The Ohio guide covers statewide tax relief.

#Payment on the median Columbus home

Change the price, rate or tax in the mortgage payment calculator.

#ADDI: the City of Columbus down-payment loan

The City’s American Dream Downpayment Initiative (ADDI) helps first-time buyers purchase inside Columbus city limits. The loan is deferred and forgiven after 5 years as long as the home stays your principal residence; sell or move out sooner and it is repaid from the sale.

Funds are limited and handed out first come, first served, so contact the City’s Housing Division before you sign a purchase contract.

Ohio Housing Finance Agency loans and grants can also be used in Columbus; the first-time buyer programs guide explains how state and city help stack.

#Franklin County conveyance fee

Ohio charges a conveyance fee when a deed is recorded: the state portion of 0.1% applies in every county, and Franklin County adds its own share for a total of 0.3%. On a median-value home that is about $840 — $280 state and $560 county — plus a small per-parcel transfer fee. Under Ohio’s rules the fee is generally the seller’s cost. The closing cost calculator estimates the buyer’s side.

#How far a Columbus income goes

The median Columbus household earns $67,084. At Freddie Mac’s 30% housing guideline that is $1,677 a month, enough for about $208,000 with 10% down at today’s average rate — 74% of the median value, or $71,900 less than the median value. Buying the median home on those terms takes about $90,129 a year. Run your own numbers in the affordability calculator.

Owning the median home costs $870 a month more than the median rent of $1,383. The rent vs buy calculator shows how long you would need to stay for buying to come out ahead. For comparison, see Chicago, another big Midwestern market, and Charlotte in the Southeast.