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Census report shows median value in Akron decreases about 6 percent from 2005 to 2006
By Paula Schleis and David Knox
Beacon Journal staff writers
Published on Tuesday, Sep 11, 2007
The median home value in Akron fell nearly 6 percent between 2005 and 2006, a time when the nation's rate grew by 7 percent.
And most counties in Northeast Ohio couldn't keep up with the state's 1 percent gain. Medina, Portage, Stark and Wayne counties all saw their median home values decline between 1 percent and 4 percent; Summit's value was up 0.1 percent essentially unchanged.
Add this gloomy note: Those numbers were collected before the current housing crisis, where the resetting of adjustable-rate mortgages has a record number of homeowners facing foreclosure.
But regional economist Jack Kleinhenz said the figures shouldn't come as a surprise, and that the trend isn't likely to reverse itself anytime soon.
Northeast Ohio has been struggling for nearly a decade as its old industrial-based economy shifts to a more modern one.
''It's going to take some time for this to happen,'' said Kleinhenz of the Cleveland-based Kleinhenz & Associates. ''It's probably a 10- to 15-, maybe even a 20-year circumstance we see ourselves in.''
The figures were released today by the U.S. Census Bureau, which has slowly been rolling out the results of its annual American Community Survey.
This is the second year in a row that the ACS has provided key social, economic and housing characteristics for geographic areas with populations of 65,000 or more.
That means this is the first time that the census more famous for painting its portraits once a decade has been able to tell decision makers how larger communities have changed in a single year.
Ohio's housing pinch
Next year's ACS might reflect the current housing woes at the national level, where 2 million people are facing higher monthly mortgage payments.
But this year's report shows how Ohio was on the leading edge of the housing pinch. The state's lagging economy and slow home value appreciation have contributed to the state having the highest foreclosure rate in the country since 2004.
Kleinhenz said it's hard to pinpoint any particular crunch between 2005 and 2006, when the ACS survey was conducted, and emphasized that it's related to a broader marketplace shift.
Housing values can't be judged in isolation of the greater economic picture, he said. In Northeast Ohio, where the population has ''flat-lined'' and household incomes have fallen, it's logical that there will be a smaller demand for new homes and less money to spend on them.
''Our population has been moving around, but the pie hasn't been enlarged,'' he said.
Taking steps
Kleinhenz remarked, however, that Northeast Ohio political leaders and economic development groups are aware of the significant challenges the region faces and ''recognizing the problem is the first step.''
He mentioned Advance Northeast Ohio, a blueprint for economic change drafted by the Fund for Our Economic Future, an unusual collaboration of some 100 area philanthropic organizations that awards grants to groups trying to effect the change.
''There are still a lot of assets here,'' Kleinhenz said, and once we learn how to optimize them, ''we can still have good quality of life, in some cases a better quality of life.''
But until population and employment trends stabilize, housing values aren't likely to improve, he said.
In addition to pinpointing economic challenges, the ACS can provide clues to their causes.
For instance, one figure mined from the report indicates why more people are at risk of foreclosure.
In 2006, 37 percent of U.S. homeowners spent more than 30 percent of their income on their home. That's up from 34.5 percent in 2000.
Likewise, the number of homeowners surpassing the 30 percent standard grew in Akron, as well as in the counties of Medina, Portage, Summit and Wayne.
In Stark County and Canton, the percentage declined.
Paula Schleis can be reached at 330-996-3741 or pschleis@thebeaconjournal.com.
The median home value in Akron fell nearly 6 percent between 2005 and 2006, a time when the nation's rate grew by 7 percent.
Get the full article here.
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