WIXLIB

Economic Conditions 6Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 2021Figure 2. 12-Month Average Unemployment Rate in the Dayton HMA and the NationEconomic Periodsof SignificanceUnemployment Rate ar-19Mar-20Mar-212.0Note: Based on the 12-month moving average.Source: U.S. Bureau of Labor StatisticsFigure 3. 12-Month Average Nonfarm Payrolls in the Dayton HMANational RecessionNonfarm r-00340MDuring 2000, jobs in the HMA peaked at 424,400,but from 2001 through 2010, the HMA lost jobsevery year, with most of the job loss concentratedat the beginning and the end of the 10-yearperiod, when the nation underwent two economicrecessions (Figure 3). From 2001 through 2010,jobs in the HMA declined by an average of 6,400,or 1.6 percent, annually. Job losses occurredin 10 of 11 nonfarm payroll sectors, and themanufacturing sector led declines with an averageloss of 3,900 jobs, or 7.1 percent, annually. Thelargest manufacturing job reduction of 8,900 jobs,or 19.7 percent, occurred in 2009, in part becausea General Motors Company (GM) assembly plantclosed in the city of Moraine, laying off 1,075employees. In 1990, the HMA had the largestconcentration of GM employees outside Michigan.Government sector jobs decreased by an averageof 300, or 0.5 percent, annually from 2001through 2008 before increasing by an average of1,100, or 1.7 percent, annually from 2009 through2010. During the latter part of the period, thefederal government subsector increased by anaverage of 1,100 jobs, or 6.5 percent, annuallywhen the Base Realignment and Closure (BRAC)process added approximately 1,120 new militaryand civilian employees at Wright-Patterson AFB.From 2001 through 2010, the mining, logging,12.0Nonfarm Payrolls (in Thousands)Contraction: 2001 Through 2010Dayton HMANote: 12-month moving average.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic ResearchComprehensive Housing Market Analysis Dayton, OhioU.S. Department of Housing and Urban Development, Office of Policy Development and Research

Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 2021and construction sector lost an average of 500 jobs, or 3.8 percent, annually.Residential construction declined in response to the national housing marketdownturn and net out-migration of people seeking jobs in larger employmentcenters, including the Cincinnati and Columbus MSAs. From 2001 through2010, the education and health services sector was the only sector with a netgain in jobs, increasing by an average of 1,000 jobs, or 1.6 percent, annually,to 67,800 jobs. The sector became the largest nonfarm payroll sector in2005, contributing nearly 16 percent of jobs, a proportion that increased to19 percent by 2010.Economic Recovery: 2011 Through 2019Following 10 years of economic contraction, the economy of the HMA generallyexpanded from 2011 through 2019, but job growth started decelerating in2016. From 2011 through 2015, nonfarm payrolls rose by an average of 3,800jobs, or 1.0 percent, annually and slowed to an average gain of 3,000 jobs,or 0.8 percent, a year from 2016 through 2019, to 391,900 jobs. From 2011through 2019, job growth in the HMA was slower than the 1.6-percent annualgrowth rate for the nation. Within the HMA, 8 of the 11 sectors added jobsduring the 9-year period. The manufacturing sector added the most jobs,Employment ForecastDuring the 3-year forecast period, nonfarm payrolls are expected to increaseby an average of 1.2 percent annually. By the end of the 3-year forecast, thelevel of nonfarm payrolls is expected to be only 1 percent below the February2020 level, before the onset of the pandemic. Stronger economic conditionsare expected in the early part of the forecast period as COVID-19 precautionsare relaxed and businesses continue to reopen. Job growth is expected toresume in the manufacturing and the education and health services sectors.Defense aircraft manufacturing employment is expected to increase by morethan 400 jobs when the F-35 Hybrid Product Support Integrator OrganizationEconomic Conditions 7increasing by an average of 900 jobs, or 2.2 percent, annually. Expansionsin the manufacturing sector included a 350 million Fuyao Glass Americaautomotive glass manufacturing plant at the former GM plant, adding 1,550employees in 2015. From 2011 through 2019, the education and health servicessector added an average of 800 jobs, or 1.1 percent, annually. In 2019, KetteringHealth completed a 25 million expansion of Grandview Medical Centerin the western portion of the city of Dayton, which doubled the size of theemergency department from 25 to 50 beds. From 2011 through 2019, jobs inthe professional and business services sector also increased, by an averageof 800, or 1.6 percent, a year, to 52,400 jobs. From 2011 through 2019, jobgrowth in the mining, logging, and construction sector resumed, increasing byan average of 300 jobs, or 2.9 percent, annually, partly because of increasedresidential construction in response to net in-migration. The governmentsector lost an average of 200 jobs, or 0.4 percent, annually from 2011 through2019 because job losses in the state and local government subsectorsoffset an average annual increase of 100 jobs, or 0.5 percent, in the federalgovernment subsector. Job growth in the federal subsector occurred partlybecause employment at Wright-Patterson AFB began increasing in 2015 insupport of increasing projects, including the development of flying cars.is fully operational in 2022 at Wright-Patterson AFB. In addition, a new 78 million Dayton Children’s Hospital specialty care outpatient center isscheduled to be completed in 2023 at the main campus of the hospital.Leisure and hospitality sector jobs are expected to recover a portion of thejobs lost during the pandemic. Four new hotels, with a combined 490 rooms,are scheduled to open, including two in downtown Dayton: the 25 million118-room Hotel Ardent Tapestry by Hilton, which is being converted from anoffice building, and the 134-room AC Hotel by Marriott, which was scheduledto be completed in the summer of 2021 but is expected to open in the fall of2022 because of delays caused by COVID-19.Comprehensive Housing Market Analysis Dayton, OhioU.S. Department of Housing and Urban Development, Office of Policy Development and Research

Population and Households 8Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 2021Table 3. Dayton HMA Population and Household Quick FactsPopulation growth in the Dayton HMAhas accelerated since 2015 despite aslowdown in net natural increase becauseof a shift to net in-migration.Population Trends2010CurrentForecastPopulationAverage Annual ChangePercentage ouseholdQuick Facts2010CurrentForecastHouseholdsAverage Annual ChangePercentage otes: Average annual changes and percentage changes are based on averages from 2000 to 2010, 2010 to current, and current to forecast.The forecast period is from the current date (April 1, 2021) to April 1, 2024.Sources: 2000 and 2010—2000 Census and 2010 Census; current and forecast—estimates by the analystFigure 4. Components of Population Change in the Dayton HMA, 2000 Through the ForecastNet Natural ChangeNet MigrationPopulation Growth3,000Population oreturren2015–C2000–201510-4,00020Population trends have generally mirroredeconomic conditions in the HMA since 2000.From 2000 to 2010, a period when the localeconomy was contracting, the populationdecreased by an average of 650, or 0.1 percent,annually (Table 3; Census Bureau decennialcensus counts). During the period, net outmigration averaged 3,325 people, annually, andoffset average annual net natural increase of2,675 people (Figure 4). Subsequently, when theeconomy began expanding, the population grewby an average of 250, or less than 0.1 percent,annually from 2010 to 2015. During the period,net out-migration slowed, averaging 1,225 peopleannually, and net natural increase slowed toan average of 1,475 people a year. During the15-year period, net out-migration from the HMAwas highest to Warren and Franklin Counties,which are part of the Cincinnati and ColumbusMSAs, respectively (Internal Revenue Service,County-to-County Migration Data). Economicconditions in those MSAs were stronger. SincePopulationQuick Facts10–Current Population: 810,2002015, the population has grown an average of 1,675, or 0.2 percent, a year despite the slowdown andsubsequent decline in job growth because of a shift to net in-migration, which averaged 1,250 peoplea year, accounting for 75 percent of population growth. Simultaneously, net natural increase fell to anaverage of 425 people annually. Some net in-migration was from Warren and Franklin Counties, partly20Population andHouseholdsNotes: Average annual changes and percentage changes are based on averages from 2000 to 2010, 2010 to current, and current to forecast.The forecast period is from the current date (April 1, 2021) to April 1, 2024.Sources: 2000 and 2010—2000 Census and 2010 Census; current and forecast—estimates by the analystComprehensive Housing Market Analysis Dayton, OhioU.S. Department of Housing and Urban Development, Office of Policy Development and Research

Population and Households 9Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 22,000Active Military and Civilian PersonnelActive-Duty Military Personnel and Civilian Personnel38,00008Population growth from 2015 to 2019 was mostlythe result of an increase in the retirement-ageportion of the population, generally definedas residents age 65 and older. This age cohortincreased by an average of 3,050, or 2.2 percent,annually (American Community Survey [ACS]1-year estimates) during the period. The relativelyaffordable housing market and services providedby Wright-Patterson AFB to retired militarypersonnel attracted or retained retired civilianand military personnel; approximately 14,000military retirees reside in the HMA (DaytonBusiness Journal, 2020). At the same time, theHMA is a popular place to live for young adults,including students and military personnel, ages18 to 39. During 2019, this age cohort increasedby an average of 1,500 people, or 0.6 percent,annually and accounted for 29 percent of thepopulation—slightly higher than the proportionin 2015 (Figure 6). During the same period, theportions of the population younger than 18 yearsold and age 40 to 64 years decreased by annualaverages of 490 and 2,700 people, or 0.3 and1.1 percent, respectively.Student Enrollment20Age Cohort TrendsFigure 5. Student Enrollment and Active-Duty Military and Civilian Personnel Trends in the Dayton HMAStudent Enrollmentbecause the HMA is more affordable than theCincinnati and Columbus MSAs. An increase inpersonnel at Wright-Patterson AFB slightly offsetdecreased student enrollment at universities andcolleges (excluding Sinclair Community College)in the HMA since 2011 (Figure 5)—a reversal fromincreasing enrollment from 2001 through 2010.Note: Student enrollment figures exclude Sinclair Community College.Sources: Integrated Postsecondary Education Data System, with estimates by the analyst; Defense Manpower System, September 2020Figure 6. Population by Age Range in the Dayton HMA2015201935%30%25%20%15%10%5%0%Younger than 18 Years18–39 Years40–64 YearsOlder than 65 YearsSource: U.S. Census BureauComprehensive Housing Market Analysis Dayton, OhioU.S. Department of Housing and Urban Development, Office of Policy Development and Research

Population and Households 10Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 2021Nearly two-thirds of the population isconcentrated in Montgomery County; however,Montgomery County has had net out-migrationsince people began leaving the city of Daytonduring the 1960s. In 1960, the population of thecity of Dayton peaked at 262,332 but decreasedan average of 1.2 percent annually, to 141,527 in2010. From 2010 to 2020, the population of thecity declined an average of 0.1 percent annually,to 139,900. Slower net out-migration from thecity partly resulted from the revitalization ofdowntown Dayton, boosted by economic growthand the popularity of urban living. The populationin the suburban and rural counties of Greene andMiami accounts for 21 and 13 percent of the HMApopulation, respectively.of net household formation since 2010, compared with all of the household increase during the 2000s.As a result, the homeownership rate fell to an estimated 63.7 percent as of the current date—down from64.9 percent in 2010 and 66.4 percent in 2000 (Figure 7).Military and Student HouseholdsWright-Patterson AFB and colleges and universities affect household formation in the HMA. WrightPatterson AFB provides unaccompanied housing for 400 military personnel and 100 single-family homesfor officers and their dependents. The AFB also provides 2,100 privately operated single-family homes,duplex homes, and townhomes for rent. Of the remaining 2,950 active-duty employees who live off base,approximately 34 percent own homes and 66 percent rent private units (estimates by the analyst). Of themore than 50,600 students that attend colleges and universities in the HMA (Integrated PostsecondaryEducation Data System, with estimates by the analyst), approximately 14,800 are housed in dormitoriesor university-affiliated student apartments. The remaining 35,800 students who live off campus anddo not live with their parents occupy an estimated 8,600 housing units; approximately 95 percent ofFigure 7. Households by Tenure and Homeownership Rate in the Dayton HMAOwnerHousehold TrendsHomeownership Rate (%)67400,00066.466300,000HouseholdsHousehold growth has exceeded populationgrowth in the HMA since 2000, partly becauseof a higher proportion of students, activeduty military, and retirees, which have smallerhousehold sizes than family households. Thenumber of households is currently estimated at338,600, reflecting an average annual increase of1,000, or 0.3 percent, from 327,630 householdsin 2010. Among the households in the HMA,a greater proportion have traditionally beenowners, but that proportion has been decliningfor the past two decades, albeit at a slowing rate.Renter households have accounted for 73 ent64Homeownership Rate (%)Population by Geography63Note: The current date is April 1, 2021.Sources: 2000 and 2010—2000 Census and 2010 Census; current—estimates by the analystComprehensive Housing Market Analysis Dayton, OhioU.S. Department of Housing and Urban Development, Office of Policy Development and Research

Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 2021those households rent private units, and the remainder are homeowners(estimates by the analyst). Together, military and student households accountfor an estimated 1 and 8 percent of the 215,700 owner and 122,900 renterhouseholds, respectively.Population and Household Growth ForecastDuring the 3-year forecast period, population growth is expected to continueat the same rate it has been since 2015, increasing by an average of 1,600,or 0.2 percent, annually, to 815,000 by April 1, 2024. Net in-migration isPopulation and Households 11expected to account for 93 percent of the growth during the forecast period,as people continue to move to the HMA for job opportunities and affordablehousing; at the same time, net natural increase is expected to continueslowing. During the next 3 years, the rate of household growth is expectedto rise slightly, increasing by an average of 1,325 households, or 0.4 percent,annually, reaching 342,600 households by April 1, 2024. The homeownershiprate is expected to continue falling—although at a slower rate than from 2010to the current date—to 63.5 percent.Comprehensive Housing Market Analysis Dayton, OhioU.S. Department of Housing and Urban Development, Office of Policy Development and Research

Home Sales Market 12Dayton, Ohio Comprehensive Housing Market Analysis as of April 1, 2021Home Sales MarketTable 4. Home Sales Quick Facts in the Dayton HMADayton HMAMarket Conditions: TightDuring March 2021, the HMA had0.6 months of available for-saleinventory—down from 1.4 months ayear earlier and significantly below apeak of 12.6 months of availableinventory in 2011 (CoreLogic, Inc.).Current ConditionsThe home sales market in the HMA is currently tight,with an estimated vacancy rate of 1.3 percent—down from 2.7 percent in April 2010 (Table 4).Sales market conditions were generally balancedin the early 2000s and began to soften in2006 during the buildup to the housing marketdownturn. Conditions softened further through2011, with the onset of the Great Recessionand the subsequent housing market downturn.Substantial overbuilding and net out-migrationalso contributed to softening conditions.Subsequent economic growth, a shift to netin-migration, and lower levels of homebuildingactivity shifted the market to balanced conditionsfrom 2012 through 2019. In 2020, despitesignificant job losses and increased homebuildingactivity, the sales market tightened, partiallybecause of a decline in the number of homeslisted for sale and because mortgage interestrates reached their lowest levels in more thanVacancy RateHome SalesQuick FactsNation1.3%NAMonths of Inventory0.61.2Existing Home Sales11,3506,010,000-22%12% 337,400 397,8006%6% 184,400 355,2001-Year ChangeNew Home Sales Price1-Year ChangeExisting Home Sales Price1-Year ChangeMortgage Delinquency Rate16%12%3.1%3.7%NA data not available.Notes: The vacancy rate is as of the current date; home sales and prices are for the 12 months ending March 2021; and months of inventory andmortgage delinquency data are as of March 2021. Th

The Dayton Housing Market Area (HMA) includes Greene, Miami, and Montgomery Counties in Ohio and is coterminous with the Dayton, OH Metropolitan Statistical Area (MSA). The HMA is in the Miami Valley region of southwest Ohio between the Cincinnati, OH-KY-IN MSA and the Columbus, OH MSA. The current population of the HMA is estimated at 810,200.