Eastmoor (Columbus Ohio) year over year neighborhood analysis

[Robert Ellis]

A recent client of mine send me this screenshot and the following message: 

" I am curious- how do you feel about Eastmoor as a neighborhood? Specifically this subsection"

So where is Eastmoor? It's directly east of downtown columbus by about 2 miles. The above map is courtesy of google maps ahwere it defines the boundaries.

This community is close to Bexley, one of the highest price per sq ft areas in columbus and known for it's walkability. So let's look at this area year over year, and then i'll look at the specific area that investor sent me. 

2018 numbers:

Number of closings in this area: 153

Average Price: $146,992.07 ($102.43 per square foot)

Highest Sale Price: $610,000 (356 S Broadleigh Road)

Lowest Sale Price: $18,000 (802 S Waverly Street)

Average Days on Market: 24.73

2019 By the numbers for this larger area:

Number of closings: 151

Average Price: $148,797.13 ($105.57 per square foot)

Highest Sale Price: $563,000 (2999 Bernard View Lane)

Lowest Sale Price: $19,000 (725 S Waverly Street)

Average Days on Market: 32.95

COMMENTARY:

The majority of these homes were built in the 40s and 50s. Compared to other areas of columbus, like the urban areas downtown and close proximity to downtown appreciation is very minimal. I look for high appreciation personally. If you've been following these series, you've seen most of the downtown areas are in the double digits with some of them year over year with 20% or 30% appreciation. Now those downtown homes are older like 1900s, so they need a lot more work and maintenance. These are going to be smaller projects. Id consider this almost more of a  suburb type home. Appreciation is minimal at 1.22% year over year. Theres a lot better closer to downtown with higher appreciation and better rent to purchase price ratios. My advice would be if you are going to invest in this area, buy below the average price point. This is city of columbus school district as well. So given all of this, I personally believe there are much better areas to invest in than Eastmoor. 

Now, let's look at that smaller area that he outlined within Eastmoor. 

2018:

Number of closings in this area: 28

Average Price: $63,590.29 ($58.59 per square foot)

Highest Sale Price: $189,900 (1192 Byron Avenue)

Lowest Sale Price: $18,000 (802 S Waverly Street)

Average Days on Market: 25.18

2019:

Number of closings in this area: 43

Average Price: $79,310.47 ($76.66 per square foot)

Highest Sale Price: $223,000 (3236 E Livingston Avenue)

Lowest Sale Price: $30,000 (813 S Weyant Avenue

Average Days on Market: 18.74

COMMENTARY:

24.72% year over year appreciation. Let me start with that and let it soak in. My first thought is this is why you want to look at smaller areas. If you look at larger areas as a whole, the data will be skewed. This area is a lot lower of a price point and as inventory is squeezed, the highest upside in columbus are going to be lower priced areas in columbus like this small pocket. We saw similar numbers in linden when I did the analysis. Since these homes are build in the 40s and 50s and they have that much appreciation, I love this small pocket in columbus. Great area for rentals, rehabs, and appreciation. This one gets the thumbs up from me. 

[Daniel Spaizman]

@Robert Ellis. This is great to keep in mind while searching for the next rental property to add to the portfolio.

14 is very few, though in a geographical area that small, it makes sense. Thank you for the discussion and analysis.