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The latest housing permit numbers are in, and while there’s been a slight increase, it’s nowhere near enough to meet the demand. Central Ohio continues to underbuild at a time when we desperately need more housing. And compared to peer cities like Nashville, the gap is even more alarming.

Columbus Is Falling Behind

According to market research firm Zonda, Columbus permitted just 10,474 homes in 2024—well below the 19,000 needed annually to keep up with population growth. Meanwhile, Nashville approved more than double that number, with 22,947 housing starts. Even Indianapolis, a metro area with similar demographics and growth rates, outpaced Columbus by over 1,500 homes.

But it’s not just about volume. The cost of new homes in Columbus is skyrocketing, putting affordable housing even further out of reach.

The Price Problem: Columbus vs. Nashville

Despite underproducing, Columbus is more expensive than Nashville for new homebuyers. In 2024, the median closing price for a new home in Columbus hit $497,450—significantly higher than Nashville’s $419,945. The question is: Why is Columbus so much more expensive to build in?

Zoning and Infrastructure, Not Tariffs, Are the Real Barrier

Much of the recent discussion about rising home prices has focused on tariffs and material costs. But those factors affect all markets, and they don’t explain why Columbus lags behind places like Nashville. The real issue? Restrictive zoning policies, slow permitting processes, and inadequate infrastructure investment.

  • Zoning rules are limiting supply. Many communities continue to enforce outdated zoning laws that make it difficult to build housing where it’s needed most.
  • Infrastructure bottlenecks slow development. In places like Licking County, inadequate water, sewer, and road capacity mean builders can’t move forward—even when demand is high.
  • Approval delays drive up costs. Excessive permitting and review timelines make new projects more expensive, contributing to Columbus’s inflated home prices.

The Bottom Line

If Central Ohio wants to compete with cities like Nashville, we need to reform our zoning policies, invest in infrastructure, and speed up the approval process. Until then, home prices will continue to climb, and we’ll keep losing economic opportunities to more housing-friendly markets.

The demand for housing isn’t going away, but if we don’t act, our ability to meet it will.

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