Why Buy Land for Sale in Ohio in 2022? (45 Reasons)
Why should you buy land in Ohio? While many factors contribute to moving or a business relocating, the lower costs of living and doing business in Ohio are very appealing compared to the coasts. Since 2016, over 40 new companies that employ nearly 10,000 workers and pay $625M in payroll have relocated to Ohio from the coasts. If that isn’t convincing enough, below are more reasons to buy land in Ohio to move or expand your business; or many commercial investors choose to buy Ohio land for sale to flip for a profit.
Below, we explore how much an acre of land is worth (2022) in Ohio; why it’s a good idea to buy land in Ohio; the benefits of buying land to build a house or business; and we even detail some alternatives to buying real property… from your couch, if you’re not ready to buy land for sale. Ohio land buyers, start taking notes!
Is Buying Land a Good Investment in Ohio in 2022?
If you haven’t seen our blog post on the Ohio land for sale market in 2022, we suggest you read it! We reviewed and analyzed dozens of reports and data points to provide a thorough answer to the question from our readers, “Is buying land a good investment in Ohio now?” Hint: Yes, it is!
How Much is an Acre of Land in Ohio (2022)?
So, how much is land in Ohio? In 2022, the average cost per acre of land in Ohio is $9,800. However, the land price per acre by zip code varies. And, as expected, there is a considerable difference between residential land values, commercial land values, and agricultural land values. There is a 20.3% increase from $8,150 the previous year, and a 14.8% increase from $7,100 in 2020. This data is according to the July 2022 Farmers National Company Agent Survey, detailing the average sale price per acre of land, from June 2020 to June 2022. While the aforementioned prices are the average cost per acre of land, premium-quality land in Ohio recently sold for $16,000 to $17,000 per acre.
Land buying is a profitable investment with land value increasing yearly. As the price of land for sale in Ohio increases, and more land is purchased, the average return on land investments increase. When you also factor in the low inventory of homes, multifamily properties, and commercial properties (warehouses, office space, and retail space), investors are enticed to buy Ohio land for sale.
Why Buy Land for Sale in Ohio?
There are many reasons to buy land for sale in Ohio, but below are the top seven:
1. The Buckeye State is the most affordable in the U.S.
Ohio ranks #1 in affordability in the most recent U.S. News “Best States for Affordability Rankings.” U.S. News’ researchers examined the cost of daily life and housing relative to household income. The average cost of living in Ohio’s major cities is 42-70% lower than on the coasts (specifically San Francisco and New York City).
2. First-time home buyers are choosing Ohio.
According to a February 2022 study by the financial website GoBankingRates.com, four cities in Ohio ranked within the top 10 of the “15 Best Cities for First-Time Homebuyers.” Those cities are Toledo, Akron, Dayton, and Cleveland. Cities were ranked on numerous factors, including median home listing prices and foreclosure rates.
3. Millennial home buyers are flocking to Ohio.
Four cities in Ohio are listed within the first 10 spots of the August 2021 “Top 20 Cities for Millennial Home Buyers” report from Clever. In other words, Ohio has more top-ten cities than any other state where Millennials can afford to buy a home. Those cities are Dayton, Akron, Columbus, and Cincinnati. Clever’s researchers evaluated the 100 most populated U.S. cities and ranked them across 12 metrics in four categories: job opportunity, home affordability, livability, and housing market forecast.
4. Ohio is a sought-after and affordable location for businesses.
The State of Ohio ranks #10, overall, in CNBC’s “Top States for Business 2021” study to determine competitiveness — how intense the battle is between states for business and jobs. The study was conducted on all 50 states based on 85 metrics across 10 broad categories of competitiveness. In the most important category, “Cost of Doing Business,” Ohio ranked #2 among all 50 states and scored an A+. Due to the effects of the pandemic, CNBC did not conduct the study in 2020. However, compared to 2019, Ohio remained steady at #10 overall and improved from #8 to #2 in the cost of doing business.
5. Ohio is the ideal location for creating start-ups.
It is no surprise that Ohio is the only state to have three cities (Columbus, Cincinnati, and Cleveland) within the top 12, featured in VC firm M25’s annual list of the Midwestern region’s top startup cities in 2022. Columbus, Ohio remains in sixth place; Cincinnati follows at No. 10, and Cleveland trails at No. 12.
6. Cities in Ohio (namely Columbus) have gained recognition as a true U.S. industrial and tech hub.
Ohio — especially Columbus — is becoming an emerging tech hub in the Midwest. Dubbed as “the Silicon Valley of The Midwest,” startups are flocking to Columbus to develop their businesses. Venture capitalists invested over $3 billion into Columbus over the past 20 years with an uptick in 2017 and a peak in 2021. The most notable startup companies that raised funds to develop their burgeoning businesses in Columbus are: Olive, Path Robotics, CoverMyMeds, Root Insurance, and Forge Biologics
Enterprises have also expanded their operations to build in Columbus, including Facebook, Amazon, and now Intel. Tech giant Intel plans to build two chip factories in two of Columbus’ suburbs (New Albany and Licking County), investing $20 billion in the Columbus region, and adding 3,000 direct jobs and likely even more indirect jobs. Therapeutics company Amgen is building a new biomanufacturing facility in New Albany.
Root Insurance and Branch Insurance join major insurance companies headquartered in Ohio, such as Progressive, Nationwide, and Cincinnati Financial.
With a low cost of living, many young, talented prospective employees, and commercial investors enthusiastic about supporting entrepreneurs, Ohio is the ideal location to start your tech, innovation, or research business.
7. Access to a large number of land buyers.
According to Politifact, 60 percent of the nation’s population lives within 600 miles of Ohio. Aside from your land being accessible to more land buyers, this is a great selling point for e-commerce businesses that ship products. When you buy land for sale in Ohio, you will have greater geographical access to land buyers.
Ohio is Prime Destination for Businesses from the Coasts
Coastal areas have long been the destination for business opportunities, especially New York City and San Francisco. But due to the high costs of doing business and living, and overcrowding, companies have been looking for more suitable options. However, the pandemic forced many businesses to re-evaluate their operations and how they are spending. As a result, more companies have been leaving these densely populated coastal areas for the other areas.
Over the years, we’ve seen a steady awakening where companies realize they can be successful away from the pricier coasts. The Silicon Valley exodus saw some of California’s largest organizations move to Texas, Florida, and Arizona. Ohio has joined their ranks to become the latest state attracting attention from major companies seeking increased profitability and growth. According to Jobs Ohio, over 40 new companies, with nearly 10,000 jobs, and $625M in payroll have moved to our great state of Ohio from the coasts over the past five years. Some notable companies include Amgen, BarkBox, Bitwise Industries, Booz Allen Hamilton, Charles River Labs, Crocs, Facebook, FlightSafety International, Fund That Flip, Google, Hilco Vision, HomeGoods, Intel, Nestle, Nexient, Protiviti, Quotient, Sarepta Therapeutics, Upstart, Veeva Systems, and Waymo.
Benefits of Buying a Home in Ohio
Buying a home in Ohio is an excellent investment decision. Our state offers homeowners many benefits, from low living costs to excellent public schools. Plus, Ohio is consistently ranked one of the best places in the country for first-time home buyers, millennials, and to start a business. Aside from having a place to live, the benefit of buying a house is that you’ll own real estate that will likely increase in value over time. Historically, houses appreciate and a profit is made on selling your house. Any improvements you wish to make, including renovations, are expected to yield a positive return on investment. In addition to being a great investment, owning a home in Ohio can provide other great benefits:
- Investment Benefits (living in your investment)
- Tax Deduction (homeowners can deduct property taxes and mortgage interest)
- Control Over Your Environment (homeowners can practically do whatever they’d like to their property)
- Stable Monthly Payments (most mortgages have fixed or capped monthly payments)
- Monthly Savings (mortgage payments vs rent)
- Financial Security (monthly payment will pay off your loan, earning you a greater percentage of equity)
Ohio Tax Benefits:
Ohio homeowners may be eligible for the following tax benefits:
- Mortgage Interest: If you have financed your home with a mortgage loan, you may be eligible for savings on the interest portion of the loan.
- Capital Gains: If you are a homeowner and sell your home, you be eligible to receive a tax break on the profit (or gain). If you are single and lived in your home for over two years, you may not be required to pay tax on that gain or any gain up to $250,000. If you are married and file joint taxes, you may not be required to pay tax on any gain up to $500,000.
- Tax Credits for Moving/Relocating: Tax breaks are often given to individuals moving between states. The benefits differ from state to state so check the state you are moving from and to. If you are relocating to another state for your job, you may also be eligible for a tax break. It is best to confirm with a certified public accountant.
Benefits for First-Time Home Buyers in Ohio:
If you are a first-time home buyer in Ohio, there are programs to help make homeownership more affordable. Through Ohio Housing Finance Agency (OHFA), the State of Ohio partners with lenders to provide home loans to people with low to moderate income levels; this includes first-time home buyers (which means you haven’t owned a home within three years). OHFA also offers other programs that assist first-time home buyers and others. OHFA’s benefits include down payment assistance, lower mortgage rates, tax credits, and combined financing options for buying and renovating a house.
Some other loans and grants programs include:
- Communities First Ohio
- My Ohio Home (OhioHome.org)
- Your Choice! DPA
- Grants for Grads
- Communities First DPA
- For Columbus Home Buyers: American Dream Down Payment Initiative (ADDI)
- For Cincinnati Home Buyers: Cuyahoga County DPA
Buy Land to Build a Home in Ohio
If you’ve always dreamed of building a home, you’ll first need to find land for sale in Ohio. Or perhaps the lack of available housing on the market has left you wondering if buying land to build a house is a better idea. You can find parcels of raw land to start from scratch or buy a teardown house for the land upon which it was built. A land broker can make the process run more smoothly, especially if you’re looking to buy raw land for sale. Ohio is home to beautiful neighborhoods with lots of open area land. Research neighborhoods in the counties you’re considering, and keep your options open.
Benefits of Starting a Business in Ohio (or Relocating Your Business to Ohio)
If you are considering starting a business, Ohio is ideal, especially for startups. Ohio offers businesses a welcoming climate that attracts global investment and stimulates growth in businesses of all sizes. Ohio’s simplified tax structure and benefits, central location, and affordable cost of living and doing business are driving incredible growth for small businesses in Ohio. Economic prosperity and diversification are also pertinent factors. Ohio’s business-friendly approach includes the following:
- With a Gross State Product (GSP) of $675B in 2020, Ohio is the 7th largest economy in the country and ranks 3rd place in manufacturing gross domestic product
- Ohio does not tax corporate income or profits (capital gains) tax.
- The great state of Ohio shattered its all-time new business filings annual record in 2019, 2020, and 2021. The total number of new businesses created in 2021 was 197,010, a 15 percent increase over the previous year’s record of 171,073 (a 146 percent increase from 80,273 in 2010). That said, inflation is impacting Ohio’s new business growth in 2022 but we’re hoping it’ll bounce back.
- Ohio’s Common Sense Initiative has generated a jobs-friendly regulatory environment.
- The state’s accelerated environmental permitting process only takes up to 180 days.
- The Ohio Small Business Investor Income Deduction is a small business tax cut that reduces taxable income by 50 percent on the first $250,000 of net income for businesses organized as PTEs.
- Ohio’s Opportunity Zone (OZ) program has boosted small business investment in low-income communities, adding an income tax credit with the federal incentive to encourage local investment. As of 2022, Ohio established 320 opportunity zones in 73 of its 88 counties” Since its inception, over 350 entities have invested in 215 businesses or developments across 72 census tracts and 18 counties, resulting in a median $201,460 investment.
- For more than 20 years, Ohio has received stable ratings from S&P, Moody’s, and Fitch of Aa1/AA+/AA+.
- According to a recent JobsOhio report, the Buckeye State ranks as the country’s fourth-best tax climate (and #1 in Tax Climate for New Data Centers and Distribution Centers) and the seventh safest state. Ohio also ranks #10 in CNBC’s 2021 America’s Top States for Business; #2 in the cost of doing business; and #7 in access to capital.
Having an Ohio LLC specifically entitles you to many benefits, including the following tax benefits:
- Single Level of Taxation: An LLC can help you avoid double taxation (unlike a corporation).
- Distribution of Profits and Allocation of Losses: An LLC provides the freedom to distribute profits and allocate losses regardless of capital contributions.
- Flexibility with Type of Taxation: As an LLC, you may choose to be taxed as a corporation if you find it more suitable.
- Passing Through Losses to Individuals: With an LLC, you can pass through losses to each member’s tax return.
Buy Land to Build a Business in Ohio
If you’re not finding the right commercial building in Ohio for your business, you may want to consider building your dream office space from scratch. You’ll want to buy land for sale in Ohio in an area that is conducive to your business and consumer needs. As you know, building a commercial property involves a lot more than building a house. You will greatly benefit by working with a land broker in Ohio, preferably local to the area in which you are looking.
Benefits of Opting to Buy Land in Ohio
Buying land in Ohio is a solid investment opportunity and provides many benefits. The value of your property increases significantly year over year. It is the quintessential seller’s market if you face retirement or want to diversify your investments. Although prices will likely continue climbing, having land for sale in a hot market is almost always considered a good idea.
If you choose to sell land, research reputable land brokers, land brokerage companies, or a full-service commercial real estate brokerage. It’s best to partner with a broker native to Ohio. Ideally, they’ll have the most connections to land buyers and others looking to purchase land in Ohio. Partnering with a commercial real estate firm will streamline your efforts. Typically, a commercial brokerage firm provides various services, including commercial appraisal services. A commercial land appraisal will ensure you gain a maximum return on investment for your Ohio land sale.
Is Ohio the best place to buy land for investment? We wouldn’t say it’s the best of the best but it can be an excellent investment decision if done right. As noted below, investing in land in Ohio has many benefits.
Key Benefits of Buying Land for Sale in Ohio
- Safe Investment: Land is a limited resource. Buying land for sale in Ohio provides a safe investment as it won’t depreciate, even if you keep it undeveloped.
- Limited Supply of Land in Ohio: Land as an investment is a finite resource. Unlike other commodities, more land can’t be produced. Due to the limited supply of developable land, land costs will continue to climb. As such, investing in land and then holding it will undoubtedly bring you a great return on your investment.
- Excellent Farming Potential: Ohio is a leading agricultural state in the country, with food and agriculture as the #1 industry. Almost half (44 percent) of the state is deemed prime farmland, and families own 99% of the farms.
- Flexibility with Land Use & Zoning: Buying land in Ohio provides flexible land use and zoning regulations. If you buy undeveloped land in Ohio, you can do what you’d like with it, as long as you follow local zoning regulations. For example, you can leave the land undeveloped, farm on your land, build a homestead, develop hunting land, build a house, develop a commercial building, or lease land to other farmers (per zoning rules and building codes).
- Central Location: Ohio’s central location allows residents easy access to many major cities in neighboring states. Traveling by plane to New York City, Los Angeles, Miami, or Dallas typically doesn’t require long flights, either. With the nation’s 10th largest highway network, Ohio connects the Midwest with the Northeast; thus, allowing cargo and other business traffic to easily travel, helping businesses grow. And Ohio’s northern coastline stretches 312 miles, with many ports. Ohio is within a one-day drive of 60 percent of the country’s population and 70 percent of its manufacturing plants.
- Breathtaking Landscapes: You will enjoy the gorgeous landscapes of this great state with approximately 75 parks, 140 nature preserves, 200 waterfalls, 9,000 campsites, and 30 nature centers.
- Affordability: While the cost of buying land in Ohio has increased (as expected with land), other aspects save you money. Ohio consistently ranks in the top lists for affordable cost of living and doing business.
- Less Competition: Most residential and commercial real estate investors buy houses, apartments, or commercial buildings. This leads to a high level of competition among those markets. Investing in land (especially raw land investments) has much less competition. And you can often buy raw land at a good deal.
- Ohio House Bill 95 (Ohio H.B. 95): There is good news if you’re considering buying land for sale in Ohio to sell or rent to a beginning farmer! Recently, Ohio Governor DeWine signed Ohio HB 95, the Ohio Beginning Farmer Tax Credit program. This law went into effect on July 18, 2022. The Ohio Farm Bureau strongly favors this program, as it will greatly help beginning farmers. HB 95 will eliminate some of the barriers beginning farmers faced when entering and exiting the world of agriculture. Under HB 95, agricultural producers and established landowners are eligible for a state income tax credit when selling land, renting land, or selling or renting agricultural equipment and assets to a beginning farmer. The credit is typically 5% of the sale, 10% of the rent, or 15% of a cash share deal. Beginning farmers may also receive up to a $1,500 tax credit when taking a qualified course on financial management. However, farmers will not receive tax credits when buying land or related goods.
Not Ready to Buy Land for Sale, Ohio? There’s an Alternative to Real Property Investing for Land Buyers!
Land investors may also want to learn about alternative real estate investment options. Some examples are a real estate investment trust (REIT), exchange-traded funds (ETFs), and exchange-traded notes (ETNs). Real estate investment trust (REIT) is a company that owns, finances, or operates, income-generating real estate across various sectors. An exchange-traded fund (ETF) invests its assets in stocks of companies in the real estate sector. An ETF typically holds REITs. An REIT ETF is an ETF that invests its assets in equity REIT securities and other derivatives. REIT ETFs are passively managed, widely diversified, and can be bought and sold in real-time; these benefits make them a great, cost-effective investment decision for the right investor.
If you’re considering buying land for sale in Ohio but are not ready to jump in, consider these investment vehicles. ETFs and ETNs include many land investment categories (e.g., timber, farming), so you’ll still have your feet in the land investing pool. Land investment returns through this investment are typically good; the downside is you won’t enjoy the actual land ownership experience.
Aim for the Best Deal & ROI – Hire a Commercial Land Broker or Land Brokerage Firm
If you are considering investing in Ohio land for sale, you must work with commercial real estate experts. An experienced commercial land broker brings local area knowledge to help you find the exact type of property you seek. They will likely be aware of properties currently listed on the market and pending, and ensure you’re looking at all available land in Ohio that match your criteria. By casting the widest net possible, you will likely find the land for sale in Ohio that best meets your wants and needs. If you’ve determined land investing is right for you, then explore your land broker options.
If you hope to get the best deal on acreage for sale in Ohio, working with experts in the field can help. Further, if you want to buy and then sell land quickly, it is in your best interest to showcase your property to the largest pool of land buyers possible. Combining expertise and exposure can guarantee maximum return on investment when you buy land for sale in Ohio. Doing so will give you the confidence in knowing you got in low and achieved top dollar for your land for sale, Ohio.
Next Step for Land Buyers Ready to Buy Land for Sale in Ohio
With almost 85 years of leading the Central Ohio commercial real estate market, The Robert Weiler Company specializes in the local market. Our commercial brokerage expertise exceeds farmland and raw land for sale; we also help clients sell or buy warehouse space, retail space, office space, multifamily properties, entertainment and sporting venues, and hospitality properties. Our expertise, service, and dedication are unrivaled whether you seek a short- or long-term investment opportunity. Contact our land brokers today at 614-221-4286; find out why The Robert Weiler Company is your best choice when looking to buy land for sale in Ohio.