Cincinnati Rent Data Reveals Housing Challenges

Renting an apartment in Cincinnati is comparable in price to most of the geographically close and similar-sized cities in the Industrial Midwest and Upper South regions. Apartment-finding website RentCafé investigated the average apartment size and rent in America’s 100 largest cities. Using a baseline of $1,500, the data provides a glimpse America’s most and least-expensive cities.

Cincinnati’s price per square foot comes out to be exactly $1.00 and, with an average apartment size of 863 square feet, the average rent in the city is $866. Cincinnati is identical in price per square foot with St. Louis, MO, although a smaller average apartment size makes the average rent ($839) cheaper in that city. Cincinnati’s average rent is less than in Pittsburgh, PA ($1,070) and Cleveland, OH ($927) but more expensive than Columbus ($800), Indianapolis ($758), and Louisville ($841). Besides Indianapolis and Pittsburgh, most nearby cities remained relatively similar in average rent prices.

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RentCafé’s data also shows, unsurprisingly, that New York City, San Francisco, and Boston top the list with average rents coming out to $4,031, $3,275, and $3,111, respectively. Using the baseline of $1,500, you could afford a 271 square foot apartment in New York City, a 342 square foot one in San Francisco, or an apartment with 399 square feet in Boston. Other cities at the top of the list include other expected cities such as Washington, DC, Seattle, WA, and Los Angeles, CA. The cheapest cities for rent in the nation are Memphis, TN, Wichita KS, and Winston-Salem, NC.

Despite rent in Cincinnati and related cities being relatively cheap renters in these cities’ respective counties struggle to afford a decent apartment. Based on data from the National Low Income Housing Coalition (NLIHC), a typical renter household in Hamilton County, OH (Cincinnati) will spend 36.9% of their income to afford a two-bedroom apartment. The NLIHC considers anything more than 30% to be unaffordable. In Marion County, IN (Indianapolis) that number is 35.1%, in Jefferson County, KY (Louisville) it’s 35.5%, 33.9% in Allegheny County, PA (Pittsburgh), and 37.1% in Cuyahoga County, OH (Cleveland). Franklin County, OH (Columbus) comes close to being affordable at 30.4% and St. Louis County barely makes the cut at 29.7%.

While housing crises are well-documented and discussed in America’s booming cities like New York City and San Francisco, this data shows the need for more affordable housing in many of America’s smaller metropolises as well. In fact, looking at the data from the National Low Income Housing Coalition, one would be hard-pressed to find many major American cities that meet the 30% of income threshold set by the NLIHC.

Regional Economic Hopes and Concerns Shifting As Cities Recover From Great Recession

According to the Federal Reserve Bank of Cleveland’s annual survey of its district, jobs and the economy overall continue to remain the top concern for local leaders.

Each year, seeking to gauge ground-level concerns and needs, the Federal Reserve Bank of Cleveland – which includes all of Ohio, Eastern Kentucky, Western Pennsylvania, and the West Virginia Panhandle – conducts a survey of community leaders to assess local challenges around the Fourth District.

In their 2015 survey, jobs remained the number one concern and priority for local leaders throughout region. Skyrocketing to the second place position was a preoccupation with access to quality and affordable housing; while vacant and abandoned properties were third.

While public officials acknowledge that jobs are indeed being created, the concern is about the type of job creation that is occurring in their communities. Part-time jobs, low wages, lack of benefits, and high turnover mean that being able to support a family is out of reach for many of those working in these newly created positions.

There is also growing concern about continued vacancy in high-wage, high-skilled positions where a skills gap is keeping many of those looking for work from filling these positions.

New in this report is the growing concern over affordable housing. While low-wage and part-time jobs continues to grow, new housing options are limited and those that are being developed are often either at the high or low end of the market. Economists at the Federal Reserve Bank of Cleveland say this is the first time the issue has registered as a top concern.

Continued in-migration to central cities, like what is being experienced in Cincinnati, is exasperating this problem throughout the Fourth District. Of course, this in-migration is seen by many as a net positive, even though the housing market has yet to catch up.

“The remarkable resurgence happening in core neighborhoods will have a very positive effect on those neighborhoods, and on the City of Cincinnati overall,” explained a professor at the University of Cincinnati in response to this survey.

A social services organization CEO in Pittsburgh also sees increasing migration to urban centers positively, but worries about the possibility of rising property driving historic residents from their neighborhoods. The concern over affordable housing is, as the Cleveland Fed puts it, “respondents grappling with the good and bad elements of revitalization occurring in their urban centers.”

While less relevant in the Cincinnati region, the Fourth District’s shale gas boom has also caused affordable housing problems in parts of West Virginia and Western Pennsylvania, as oil workers move in and are able to pay more in rent than other, longer-term residents.

Although the economic recovery is in full swing and most cities are seeing migration to their urban centers, many neighborhoods are still suffering from blight and disinvestment. According to the survey, abandoned properties were the third most-cited concern among respondents. Many cities in the region, particularly those in northern Ohio, are still saddled with significant amounts of abandoned and vacant properties, many of which left over from the housing crisis.

These properties not only require tax revenue to maintain and produce no tax revenues in return, but they are also most typically found in low-income, minority neighborhoods, exasperating already-difficult economic conditions for many of these communities.

At the end of the survey, the Cleveland Fed attempted to gauge emerging issues, both positive and negative. The biggest negative issue cited by almost all respondents was how to deal with an aging infrastructure that needs to be replaced. Budget cuts at all levels of government have lead to increased deferral of basic maintenance and improvements, especially in older municipalities that dominate the Fourth District.

While on the positive side, most respondents cited the continued migration of residents to the inner-city as having the most potential to positively impact economic recovery throughout the region.

Respondents also specifically mentioned the activation of the National Housing Trust Fund, which will provide federal support to help areas construct, preserve, and rehabilitate buildings for affordable housing. The National Low Income Housing Coalition predicts that Ohio and Pennsylvania will be some of the largest recipients of these funds, and thus have the most to gain or lose by its status.