HOUSING NEWS: Increased Employment Supports Future Housing Prospects: Greater Cincinnati increased jobs by 3.6% in 2021

Posted January 7, 2022

Employment

The United States added 5.9 million jobs over the past year, increasing by 4.1%. In the last month, 778.0 thousand jobs were gained, increasing by 0.5%. The Midwest Region, which includes the state of Ohio, added 967.7 thousand jobs over the past year, increasing by 3.1%. In the last month, 93.1 thousand jobs were gained, increasing by 0.3%.

The state of Ohio added 107.2 thousand jobs over the past year, increasing by 2.0%. In the last month, 22.9 thousand jobs were gained, increasing by 0.4%.

Cincinnati, OH-KY-IN added 38,700 jobs over the past year, increasing by 3.6%. In the last month, 1.4 thousand jobs were gained, increasing by 0.1%.

Housing Starts

Nationwide, the number of housing starts rose by 11.8% over the month of November 2021 to 1,679,000. Single-family starts rose by 11.3% to 1,173,000. Multifamily starts rose by 12.9% to 506,000. Over the past 12 months, total housing starts are up by 8.3%. Single-family starts are down by 0.8% but multifamily starts are up by 37.1%.

In the Midwest Region, which includes the state of Ohio, the number of housing starts fell by 7.3% over the month of November 2021 to 204,000. Single-family starts rose by 1.6% to 129,000. Multifamily starts fell by 19.4% to 75,000. Over the past 12 months, total housing starts are up by 7.9%. Single-family starts are down by 3.7% but multifamily starts are up by 36.4%.

On a year-to-date basis, total permits over the past 12 months ending in November 2021 are up by 6.0% across the state of Ohio to 28,270. Single-family permits are up by 9.6% to 18,891 but multifamily permits are down by 0.7% to 9,379.

In Cincinnati, OH-KY-IN, total permits year-to-date are up by 16.1% to 7,790. Single-family permits are up by 0.8% to 4,888 and multifamily permits are up by 55.9% to 2,902.

House Prices

Nationwide, house prices grew by 5.3% over the third quarter of 2021 and over the past year house prices across the country rose by 16.4%. At its low, reached in the third quarter of 2011, house prices in the US were 18.3% below their second quarter of 2007 peak level. Currently, house prices are 41.3% above their boom-related peak level.

Across the East North Central Division, a component of the Midwest Region which includes the state of Ohio, house prices grew by 4.4% over the third quarter of 2021 and over the past year house prices in the Division rose by 14.2%. At its low, reached in the third quarter of 2012, house prices in the East North Central Division were 16.6% below their fourth quarter of 2006 peak level. Currently, house prices in the East North Central Division are 31.7% above their boom-related peak level.

Across the state of Ohio, house prices grew by 4.7% over the third quarter of 2021, and over the past year house prices in the state rose by 15.1%. At its low, reached in the fourth quarter of 2012, house prices in Ohio were 12.9% below their third quarter of 2005 peak level. Currently, house prices in Ohio are 38.4% above their boom-related peak level.

Across the area of Cincinnati, OH-KY-IN, house prices grew by 5.0% over the third quarter of 2021, and over the past year house prices in the metro area rose by 14.9%. At its low, reached in the fourth quarter of 2013, house prices in Cincinnati, OH-KY-IN were 10.8% below their fourth quarter of 2006 peak level. Currently, house prices in Cincinnati, OH-KY-IN are 41.1% above their peak level.

Builder Outlook

According to the NAHB/Wells Fargo Housing Market Index (HMI), sentiment among builders for the single-family housing market nationally rose by 1 point to 84 over the month of December 2021. Over the past year, the HMI has fallen by 2 points from 86 in December 2020. Any value above 50 means more builders are seeing improvement rather than decline. The HMI fell to a low of 8 in January 2009.

Source: NAHB Economic & Housing Policy Dept.