The Central Ohio economy is finally beginning to show some signs of life. Crain’s Cleveland Business reported that job growth is trailing the rest of the country, but still accelerating from its pace in 2014. The Ohio Department of Taxation has also shown tax receipts have increased, which means that economic activity is starting to pick up as well.
New data shows that the commercial sector is growing faster than originally expected, which suggests that job growth will pick up as well. This report indicates that the economy is starting to grow more rapidly. Recent reports on rising commercial loans corroborate this prediction.
Commercial Loans Indicate Columbus Economy on the Upswing
Columbus businesses have been expanding more rapidly over the past year. According to Fifth Third Bank, the number of commercial loans it received in 2015 has increased 12% since the prior year. Jerry Kelsheimer, the CEO of the bank’s headquarters in the northern part of the Ohio, said that the number of loans in that region is growing over twice as fast as other markets it serves.
The rising number of loans isn’t the only factor demonstrating that the economy is becoming more robust. The Federal Deposit Insurance Corp. has released data showing the average dollar value of each commercial loan is rising by 8%, which means that the total value of all commercial loans has risen 50%.
The rising number of commercial loans indicates that businesses are expected to grow much faster over the coming year. This suggests that the Ohio economy is going to be much stronger in the coming year.
Housing Market Will Rise As Private Sector Jobs Are Created
There is a strong correlation between private sector job growth and housing sales. New commercial loans indicate that private sector employers are looking to expand. They will probably need to hire new staff to meet their needs as they strive to penetrate new markets and reach more customers.
Stronger job creation will ultimately lift the housing market. Realtors throughout Northern and Central Ohio are confident that housing sales will boom as hiring picks up. Demand for housing may increase even more rapidly if out of state residents are drawn to Central Ohio seeking jobs.
Homeowners that are interested in selling their properties should be aware of this trend. They should pay close attention to changes in the job market, because they will likely be followed by a rising demand for new housing in the area.