Columbus, GA-AL Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Columbus, GA-AL, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index measuring average price changes in single-family houses in the metropolitan statistical area (MSA). The HPI value for any given quarter is equal to 100 if the average price of homes sold during that quarter was equal to the price of homes sold during the base period. The HPI is calculated using data from Fannie Mae and Freddie Mac, which purchase mortgages from lenders and package them into securities for sale to investors.

As of the fourth quarter of 2019, the Columbus HPI was 159.3, meaning home prices in the metro area were 59.3% higher than they were in the base period. This was up from a value of 156.8 in the third quarter of 2019, and up from 138.4 in 2018 Q4. Home prices have been on an upward trend since bottoming out at 124.1 in 2016 Q1.

The appreciation in home prices has been driven by strong economic fundamentals in the metro area. Columbus has seen population growth of 1.7% since 2010, while job growth has averaged 2% per year over that same time period. The unemployment rate stood at a low 3% as of December 2019, well below both the national rate of 3.5% and the state rate of 4%. Wages have also been rising steadily, increasing by an average of 3% per year since 2016 according to data from the Bureau of Labor Statistics (BLS).

All these factors have contributed to strong demand for housing in Columbus, which has helped drive up prices even as new construction has lagged behind other metros with similar population growth rates over recent years