Cleveland, Ohio Although the Cleveland metropolitan area’s economy has been in recession since the latter part of 2000, there are signs that the recession may be nearing its end. Employment recorded small but steady gains in the first 6 months of 2002. Total nonagricultural employment in the Cleveland metropolitan area totaled 1,161,000 jobs by June 2002. For the 12-month period ending June 2002, nonagricultural employment was down only 0.5 percent compared with a 1.6-percent decline in the previous 12-month period. The population of the Cleveland-Lorain-Elyria metropolitan area totaled 2.2 million in 2000, a 1.3-percent decline since 1990. Although the city of Cleveland has lost population, the area’s suburban counties and the neighboring Akron metropolitan area have grown as a result of the out-migration and an increase in job opportunities. Single-family residential construction in the metropolitan area totaled 3,380 units during the first 6 months of 2002, up 1 percent from the same period in 2001. At this pace, total activity for 2002 should equal the annual average for the past 4 years of 7,000 new homes. Sales of existing homes in both 2000 and 2001 totaled approximately 20,000 homes. Local sources report a significant increase in activity in 2002 and attribute the robust sales to low mortgage rates and increased consumer confidence. Sales in the area in the first 6 months of 2002 were up 9 percent compared with the first half of 2001. The average sales price for a single-family home was $155,400 during the period, up 1 percent. Multifamily building permit activity in the Cleveland metropolitan area has slowed a bit in the past 3 years. Between 1999 and 2001, multifamily activity averaged 1,000 units annually, down from approximately 1,200 units annually in the previous 3-year period. Downtown Cleveland’s rental market continues to expand. With more than 3,000 units in the central business district and another 300 under construction, the downtown area has become a distinct and active submarket. The city of Cleveland recently announced the $220 million Euclid Corridor Transportation Project for downtown in an effort to increase the area’s appeal and accessibility. The project is expected to improve public transportation between downtown’s Public Square and areas in East Cleveland, including University Hospital and the Cleveland Clinic. Overall the Cleveland area apartment market is soft, with typical occupancy rates in the range of 85 to 90 percent. Local sources attribute the relatively low occupancy to job losses, declining household growth and demand, and increased homeownership. As of the second quarter of 2002, the median rent for a two-bedroom unit was $620, virtually unchanged from the second quarter of 2001.

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