Press Release Archive: 2010 | 2009 | 2008

Study: Midwest Records Solid Metrics in Employment, Housing

For Immediate Release:
May 25, 2010

Columbus, Ohio – A new national economic development study comparing changes in factors including employment rates, overall population and housing prices found the Midwest fared better overall than many of its regional counterparts during the most recent recession.

The study, compiled by the Columbus (Ohio) Chamber of Commerce, includes data for 32 cities and Metropolitan Statistical Areas (MSAs) ranging from Los Angeles and New York to Detroit and Atlanta. The cities and MSAs were compared across seven key categories to determine overall economic health and signs of growth during the recession. Some of the Midwest locales examined were strong in employment and housing price stability.

“Because of the widely known struggles of Midwest spots like Detroit, the nation’s perception is that the entire region is experiencing the same level of hardship – record-setting employment losses and real estate declines,” said Bill LaFayette, Ph.D., vice president, economic analysis at the Columbus Chamber of Commerce. “While the Midwest saw decreases across the board like everyone else, some Midwest cities and MSAs were able to maintain favorable metrics compared to some other metropolitan areas. Because our region didn’t see the significant spikes prior to the recession, we didn’t experience declines as drastic as some other regions.”

Another area in which the Midwest performed well was housing affordability, based on median household incomes and median housing prices. Of the MSAs researched, eight of the 10 most affordable locales – meaning that the average wage earner could afford the average home – were located in the Midwest.

Some of the key findings from the study include:

• Of the 32 MSAs researched, Pittsburgh came out on top regarding employment loss during the height of the recession (from Dec. 2007 to Feb. 2010), with a decrease of just 3.3 percent. Columbus (-4.9 percent), Kansas City (-5 percent) and St. Louis (-5.6 percent), all Midwest MSAs, also fared well, comparatively. Locations including Los Angeles, Miami and Atlanta lost nearly double the percentage of jobs in the same time period.
• Metropolitan areas outside the Midwest have generally suffered the largest house price declines since 2007, according to the Federal Housing Finance Agency (FHFA) House Price Index. Miami, Phoenix and Los Angeles all recorded decreases of more than 25 percent. The bright spot in the Midwest was Pittsburgh, with an increase of 3.3 percent; on the other hand, Detroit prices fell 27.1 percent.
•  Despite the recession, some Midwest MSAs, including Indianapolis, Columbus and Kansas City, saw notable population increases (more than 2 percent) from 2006-2008 – easily surpassing cities like Boston and New York. The central city population of both Columbus and Kansas City also grew during the same time period – with increases of 1.8 percent and 1.2 percent, respectively – meaning these two Midwest locales are growing on both urban and suburban levels.

To access a full version of the economic development study, visit http://www.columbus.org/media-center/publications.php#eco.

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The Columbus Chamber, with nearly 2,500 area businesses and organizations, leads and supports economic growth and development for the Greater Columbus community.

Media Contacts:
Susan Merryman, Columbus Chamber
614-225-6941
Susan_merryman@columbus.org

Ann Marcum, Fahlgren Mortine Public Relations
614-383-1634
Ann.marcum@fahlgren.com