Ohio's housing market faces a complex challenge: a growing demand for housing isn't being met by a sufficient supply, particularly in the affordable housing sector. This lack of inventory creates a ripple effect, impacting affordability for everyone and contributing to housing instability.

A recent report by the Ohio Senate Select Committee on Housing sheds light on this critical issue. Here are some key takeaways:

• Shrinking Supply, Growing Demand: Ohio's housing stock is aging, with over 1 million units built before 1939. New construction has plummeted – from nearly 750,000 homes built in the 1970s to a mere 24,000 so far in the pandemic-scarred 2020s (Ohio Senate Report). This decline doesn't align with Ohio's population growth, however slow compared to other parts of the nation.
• The Affordability Squeeze: The lack of inventory pushes housing costs upwards, disproportionately impacting low- and middle-income residents. The National Association of Home Builders reports the 2019 median price to build a single-family home in the U.S. topped $296,000. While Ohio isn't quite that high, the situation is concerning. The Ohio Chamber of Commerce highlights the "working Ohioan's ability to own affordable housing remains nearly unattainable" due to a lack of resources and funding for residential development.
• Regional Disparities: The challenges vary across the state. Northeast Ohio faces a significant gap in affordable housing, particularly in urban areas. A staggering statistic: rents are rising faster than wage growth (Ohio Senate Report). This highlights the interconnectedness of housing and economic opportunity. In these areas, witnesses emphasized the link between housing insecurity and social determinants of health, like access to healthcare and education.

The good news? There's a growing recognition of the problem and a willingness to find solutions. Here are some promising initiatives:

• The Ohio Chamber of Commerce proposes public policy solutions like "incentives to encourage zoning reform" and "tax policy solutions to assist older Ohioans who want to age in place." This aligns with research from the American Enterprise Institute, which found that zoning changes in Denver led to a "massive building boom" by allowing for greater density and more multifamily buildings.
• The Senate Select Committee's 23 recommendations offer a roadmap for progress. These include streamlining permitting processes, expanding access to financing for affordable housing projects, and protecting tenant rights.

Addressing this complex issue requires a multi-pronged approach involving:

• State and Local Collaboration: State-level policies like tax breaks for affordable housing development can incentivize construction. Local governments can streamline permitting processes and enact targeted measures like property tax relief programs to support long-time residents.
• Public-Private Partnerships: Partnerships between developers, community organizations, and the private sector can leverage resources and expertise to overcome barriers to affordable housing development.
• Protecting Tenants: Fair housing practices and resources for tenant-landlord mediation can promote housing stability. Measures like "Source of Income Protections" can expand housing opportunities for low-income renters using vouchers.

Looking Ahead: A Brighter Future for Ohio's Housing Market

By working together, Ohio can create a housing market that meets the needs of all its residents. By increasing the supply of affordable housing units, fostering collaboration across sectors, and prioritizing policies that empower local governments and protect tenants, Ohio can build a future where everyone has access to safe and secure housing. This, in turn, will contribute to stronger communities, a more stable economy, and a better quality of life for all Ohioans.

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