Changes in Ohio's Population and Migration Patterns:
Between 2010 and 2021, Ohio's population grew modestly by 2.1%, rising from 11.5 million to 11.8 million residents. This growth rate starkly contrasts the national average, which saw a substantial 7.3% increase during the same period.
From 2000 to 2020, Ohio's population expanded by 3%. Still, when we exclude Columbus and its surrounding areas, the rest of the state experienced a population decline of roughly 1%, equivalent to a loss of approximately 100,000 people, as the Greater Ohio Policy Center reported.
Ohio witnessed notable decreases in its population, primarily among those under 54 years old, with some exceptions in specific metropolitan regions that attract younger residents and experience employment growth.
Between 2010 and 2021, Franklin County stood out with Ohio's most significant population growth, gaining 155,196 residents. Conversely, Cuyahoga County experienced the most substantial decline, losing 28,716 people.
Despite its relatively sluggish population growth, Ohio maintains its position as one of the top 10 most populous states in the United States, according to data from the Census Bureau.
The population decline in some regions of the state has led to decreased demand for housing, resulting in lower home prices and a buyer's market. However, certain metropolitan areas in Ohio, such as Columbus, continue to experience population growth driven by factors like employment opportunities, available land, and new housing developments. These areas will likely increase housing demand and higher home prices.
The combination of housing affordability in Ohio, along with factors like spacious yards and green spaces, continues to attract young families to cities like Columbus and Cincinnati, offsetting some of the population declines experienced in other regions.
Employment and Economic Indicators:
As of April 2023, Ohio's unemployment rate stood at 3.7%, marking the lowest rate over two decades. This represents a decrease from the 4% rate reported in January 2023. Historically, Ohio's unemployment rate reached a high of 16.40% in April 2020 and a low of 3.80% in January 2001.
In 2022, Ohio's real GDP reached $638.91 billion, a significant increase from the previous year's $629.29 billion. The real estate industry contributed $113.6 billion, constituting 13.8% of Ohio's gross state product in 2022.
Substantial investments in Ohio, such as Honda and LG Energy Solution's combined $4.2 billion investment and Intel's $20 billion semiconductor plant, have created thousands of new jobs in the state. Ohio's business-friendly environment and diverse economy are further highlighted by the state recording 14,493 new business filings in September 2022, totaling 138,167 new businesses established in 2022, averaging 15,352 per month.
With Ohio's economy thriving and the development of new industrial facilities, such as those in Licking County, there is a growing demand for housing. However, Ohio has faced a limited housing supply due to supply chain disruptions since 2020.
Real Estate Development and Construction Trends:
The revenue of construction companies in Ohio is projected to reach approximately $69.7 billion by 2024. Currently, the state is experiencing a surge in construction projects, with central Ohio, particularly the Columbus metro area, receiving the largest share of these endeavors. Notable developments include:
Google announced two additional data centers in Columbus and Lancaster, requiring at least 1,000 construction workers.
Intel's mega-project in Licking County requires a minimum of 7,000 construction workers for its semiconductor fabrication plants.
Despite these significant construction projects, Ohio's pace of residential building construction could be more active in meeting demand. A report funded by the Building Industry Association of Ohio indicates that the Greater Columbus region requires 14,000 to 19,000 homes to be built annually, compared to the 8,000 to 9,000 homes added each year over the past decade. In 2022, the Building Industry Association of Central Ohio reported 12,289 housing permits, a 4% increase over 2021 and the highest figure in 18 years, but it still needs to meet the demand.
The slow pace of residential construction relative to demand has created an imbalance in Ohio's housing market, intensifying competition among homebuyers and renters resulting in higher home prices and rents.
Given major projects like Google's data centers and Intel's semiconductor plant underway, there may be a shift in focus toward infrastructure and commercial projects in Ohio's construction industry. This shift could divert resources and attention from residential construction, exacerbating the housing supply shortage. #OhioGrowth #JobBoom #HousingDilemma #OhioEconomy #Jobs #HousingShortage #CommunityTalks #RealEstate #HousingMarket #realestatetrends
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