The state is in dire need for new policies that improve the foreclosure process and promote job growth so the state’s housing and economic recovery takes hold, according to the American Action Forum.
An AAF study found housing values in Ohio have recovered to 85% of their peak value increasing roughly 5% since January 2012. Improvements, however, are unevenly spread around the state depending on the job market.
AAF’s housing policy analyst Andrew Winker warns that findings indicate unless the foreclosure inventory continues to clear “and policies that encourage stronger growth in both jobs and incomes” are implemented across the state, “the recovery of housing markets in Ohio will also continue only modestly at best.”
During this period Ohio's economy saw modest growth with the addition of 26,500 jobs in 2013. However, if during the economic crisis the state lost 378,300 jobs, as of today only 158,300 jobs have been recuperated since the end of the recession.
The job growth-housing price codependence is confirmed by data in many cities including Columbus and Toledo.
In Columbus home prices have recovered to 90% of their peak value along with the unemployment rate, which is at almost one percentage point lower than the state average.
At the same time in Toledo house prices continue to fall as the unemployment rate remains elevated to more than one percentage point higher than the state average.
AAF analyzed housing, foreclosure and overall economic growth data in the state in 2012 and 2013. Data also show that in addition to slow job market improvements regulatory pressures also continue to slow down Ohio’s recovery.
The state is suffering from the same national trend reported recently by various ratings agencies and analysts: The length of the foreclosure process continues to increase despite slight foreclosure inventory rate improvements.
As the length of the foreclosure process has extended by 9% to an average of 588 days, the year-over-year foreclosure inventory in Ohio decreased from 5% in 2012 to 2.5% in 2013.