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I hope this isn't all speculation. I would love to see an announcement.

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  • The Clinic will cut the ribbon on its quantum computer today. NOW is when the city should go all out to get one of the two Advanced Research Project Agency - Health sites for the city.  For the moment

  • Disagree. We could use more direct flights to more places that 500 miles or more away, we would be a stronger attraction to business. And if we could get to downtowns in Columbus, Cincinnati, Pittsbur

  • LlamaLawyer
    LlamaLawyer

    Y’know, the county as a whole isn’t growing either (at least not till recently). Downtown Cleveland and University Circle are growing as fast or faster than ANYWHERE else in the county. Cleveland co

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ACE Report: Northeast Ohio posts another modest jobs gain

 

The Northeast Ohio workforce gained 682 paychecks in February. A small number, but in a jobs picture on a roller coaster, any gain is better than the alternative.

 

The latest Ahola Crain’s Employment (ACE) Report projects that private-sector employment in the Cleveland-Akron metropolitan region’s private sector grew to 1,164,001 jobs in February from 1,163,319 in January on a seasonally adjusted basis, an increase of 0.06%.

 

http://www.crainscleveland.com/article/20160325/NEWS/160329823/ace-report-northeast-ohio-posts-another-modest-jobs-gain

"Modest" is a strong word here. Fewer than 700 new jobs out of nearly 1.2 million. It's basically no change.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

Cost to rent in U.S. growing more slowly

March 25, 2016 Updated 4:16 p.m.

By JOSH BOAK / The Associated Press

 

Price growth has slowed in many metro areas where gains are running above the national average: New York, Los Angeles and Houston. Rental costs have slowed in still-hot markets such as San Francisco, San Jose and Denver.

 

Prices have fallen outright in Cleveland, Oklahoma City and Memphis, Tenn.

 

Not all markets have seen price growth slow – with many markets seeing rental costs rise at a faster clip.

 

The median rental price in Seattle has climbed 7.22 percent to $1,946 a month, despite a wave of development in that area. Rental costs are also picking up speed in Boston and Portland, Ore.

 

MORE:

http://www.ocregister.com/articles/price-709727-rental-percent.html

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

Cost to rent in U.S. growing more slowly

March 25, 2016 Updated 4:16 p.m.

By JOSH BOAK / The Associated Press

 

Price growth has slowed in many metro areas where gains are running above the national average: New York, Los Angeles and Houston. Rental costs have slowed in still-hot markets such as San Francisco, San Jose and Denver.

 

Prices have fallen outright in Cleveland, Oklahoma City and Memphis, Tenn.

 

Not all markets have seen price growth slow – with many markets seeing rental costs rise at a faster clip.

 

The median rental price in Seattle has climbed 7.22 percent to $1,946 a month, despite a wave of development in that area. Rental costs are also picking up speed in Boston and Portland, Ore.

 

MORE:

http://www.ocregister.com/articles/price-709727-rental-percent.html

 

While rates in Cleveland as a whole may have fallen, the hot neighborhoods continue to rise. As I'm coming up on a year in my current apartment, they tried to raise my rent 11%! I went down to the office and negotiated with them. Ended up getting the increase dropped down to 5%, which still isn't bad considering I talked my rent down when I moved in in the first place. Never hurts to ask!

 

Edited to add quote

^To your point, here's a PDF of neighborhood/suburb-level rent trends for the Cleveland area drawn from the same source that OCRegister article cites: http://files.zillowstatic.com/research/public/rental/ZRI.Cleveland.394475.pdf

 

It shows Downtown and the near west side sharply up year over year. Though without knowing more, I have no idea how trustworthy Zillow's neighborhood-level rent trend estimates are.

Crain's Cleveland ‏@CrainsCleveland  5m5 minutes ago

Home prices in 20 U.S. cities, including #Cleveland, kept climbing in January http://trib.al/cHenGvj

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

Both rents and home prices are well below the national average and growing at slower pace as well. I guess not it's not to surprising looking at the recent populations statistics.

depends on the neighborhood. Sold mine for 30% growth in 4 years. NE Ohio pretty polarizing. The good is great and on par with probably anywhere else. the bad is real bad

depends on the neighborhood. Sold mine for 30% growth in 4 years. NE Ohio pretty polarizing. The good is great and on par with probably anywhere else. the bad is real bad

 

Problem is that the bad outweighs the good unlike most other US markets.

Except if the bad outweighed the good, home prices wouldn't be climbing, like the article suggests.  Unless the good in Northeast Ohio is so drastically good that it still spins the market as a positive of 3%....then...well, I cant imagine many people on this board are upset with that, either.

agreed it pretty clearly looks like the neighborhoods are polarized and there is $ growth in the good neighborhoods. along with a general rise in prices. and what else can be said about the neighborhoods in bad shape? this is all nothing i don't think we did not already know or guess. targeted neighborhoods are all the rage in the ongoing back to the city movement and will probably remain a good investment for a long time to come. a shame it isnt more widespread across the city, but it is what it is for now.

Except if the bad outweighed the good, home prices wouldn't be climbing, like the article suggests.  Unless the good in Northeast Ohio is so drastically good that it still spins the market as a positive of 3%....then...well, I cant imagine many people on this board are upset with that, either.

 

That's right. But the national average was around 6% and Portland saw a jump of 11.2%. Chicago was the worst market at 2.1%. So in the basket of the 30 markets studied, Cleveland was near the bottom but did see a decent rise.

 

Cleveland was one of only 3 markets to see rent declines.

 

The market is still pretty weak but it's not surprising because people are moving away from the area.

More weak NE Ohio data:

 

In Feb. the Cleveland market saw a 0.8% y-o-y growth in the job market compared to a state average of 1.5%. Cincinnati grew by 2.2%, Columbus 2%. Still doing better than Pittsburgh which only grew by 0.1%.

 

Labor market shrunk for the first two months of the year as well.

 

 

www.bls.gov

 

Go to: Areas at a Glance.

^He's highlighting the total labor force: employed + unemployed people seeking employment. The first group seems to be growing (modestly), the second one shrinking. Nothing really new. Piiparinen's work suggest we're losing poorly educated workers to the sunbelt and gaining more highly educated workers, but the first group is bigger than the second.

^He's highlighting the total labor force: employed + unemployed people seeking employment. The first group seems to be growing (modestly), the second one shrinking. Nothing really new. Piiparinen's work suggest we're losing poorly educated workers to the sunbelt and gaining more highly educated workers, but the first group is bigger than the second.

 

No argument there. Manufacturing is still cratering and is still 12% of the job market.  How far can Greater Cleveland shrink before there is a balance? There's no reason to think things will change this year so far.

Except if the bad outweighed the good, home prices wouldn't be climbing, like the article suggests.  Unless the good in Northeast Ohio is so drastically good that it still spins the market as a positive of 3%....then...well, I cant imagine many people on this board are upset with that, either.

 

That's right. But the national average was around 6% and Portland saw a jump of 11.2%. Chicago was the worst market at 2.1%. So in the basket of the 30 markets studied, Cleveland was near the bottom but did see a decent rise.

 

Cleveland was one of only 3 markets to see rent declines.

 

The market is still pretty weak but it's not surprising because people are moving away from the area.

 

I don't want to see housing prices increase more rapidly than incomes, personally.  Portland's 11.2% growth is neither sustainable nor a good thing.

I don't want to see housing prices increase more rapidly than incomes, personally.  Portland's 11.2% growth is neither sustainable nor a good thing.

 

It's a very good thing for the majority of households already there, whose personal wealth rapidly increased. It's a bad thing for aspiring Portland homeowners who are now priced out, current renters who suffer from the ripple effects, and people who want to move to Portland. No mystery which constituency has the most sway.

Cleveland is the fourth-cheapest large U.S. city to run a business in, according to KPMG study

March 30, 2016 UPDATED 3 HOURS AGO

By JEREMY NOBILE 

 

A new study by KPMG confirms what many Northeast Ohio entrepreneurs already seem to know: It’s cheap to do business in Cleveland.

 

According to the Big Four audit firm’s biennial Competitive Alternatives study, Cleveland is the fourth most cost-friendly city for American businesses among 31 large metro markets — those with populations greater than 2 million people — that were analyzed.

 

Cincinnati, the only other Ohio city analyzed, is considered the most cost-friendly city in the United States, followed by Orlando and Tampa Bay.

 

MORE:

http://www.crainscleveland.com/article/20160330/NEWS/160339983/cleveland-is-the-fourth-cheapest-large-u-s-city-to-run-a-business-in

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

New York-based? The article says it was founded in NYC but now has its HQ in Cleveland...

 

March 17, 2016 1:38 p.m. UPDATED 13 DAYS AGO

New York-based In Our Backyard opens Detroit office for grassroots projects

By SHERRI WELCH

 

New York-based In Our Backyard has opened an office in Detroit’s New Center area.

 

The national nonprofit, known as ioby, combines online fundraising with community organizing to support citizen leaders in small-scale projects envisioned by neighborhood leaders, which can have big impact.

 

...Its arrival in the Detroit market comes as it opens a new headquarters office in Cleveland, adding to other offices in Brooklyn, N.Y., and Memphis.

 

MORE:

http://www.crainsdetroit.com/article/20160317/NEWS/160319865/new-york-based-in-our-backyard-opens-detroit-office-for-grassroots

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

Well, that's pretty interesting. Very interesting.

I don't want to see housing prices increase more rapidly than incomes, personally.  Portland's 11.2% growth is neither sustainable nor a good thing.

 

It's a very good thing for the majority of households already there, whose personal wealth rapidly increased. It's a bad thing for aspiring Portland homeowners who are now priced out, current renters who suffer from the ripple effects, and people who want to move to Portland. No mystery which constituency has the most sway.

 

It may look or feel like a good thing but it's not, just like it wasn't nationally before the big crash.  That gap between wages and housing prices is a bubble and it isn't sustainable.  The question isn't whether those prices will crash down to wage levels, the question is how much damage will result when they do.

It may look or feel like a good thing but it's not, just like it wasn't nationally before the big crash.  That gap between wages and housing prices is a bubble and it isn't sustainable.  The question isn't whether those prices will crash down to wage levels, the question is how much damage will result when they do.

 

I think the national housing bubble of 2008 and the localized Portland housing crunch are distinct issues. 

 

The 2008 bubble was caused by a lot of things but chief among them was extremely accessible credit to almost everyone.  This pushed demand for housing beyond sustainable levels leading to the crash.  Housing supply was being added at an incredible clip to keep up and housing construction activity reflected.  This was a classic economic bubble, almost down to a textbook example.

 

Portland's rising housing prices however are a product of restricted supply.  The supply of housing in Portland and other similar growth metros (San Fran being the worst) just can't keep up with the demand to live in it, mostly due to restrictions on new development.  But to my knowledge, credit requirements aren't being relaxed across the board and the rise in prices aren't a true "bubble" like 2008.  Instead, its a fixed or extremely slow growing supply with lots of demand, generally.

It may look or feel like a good thing but it's not, just like it wasn't nationally before the big crash.  That gap between wages and housing prices is a bubble and it isn't sustainable.  The question isn't whether those prices will crash down to wage levels, the question is how much damage will result when they do.

 

I think the national housing bubble of 2008 and the localized Portland housing crunch are distinct issues. 

 

The 2008 bubble was caused by a lot of things but chief among them was extremely accessible credit to almost everyone.  This pushed demand for housing beyond sustainable levels leading to the crash.  Housing supply was being added at an incredible clip to keep up and housing construction activity reflected.  This was a classic economic bubble, almost down to a textbook example.

 

Portland's rising housing prices however are a product of restricted supply.  The supply of housing in Portland and other similar growth metros (San Fran being the worst) just can't keep up with the demand to live in it, mostly due to restrictions on new development.  But to my knowledge, credit requirements aren't being relaxed across the board and the rise in prices aren't a true "bubble" like 2008.  Instead, its a fixed or extremely slow growing supply with lots of demand, generally.

 

We certainly are in bubble, but not in a credit bubble. Prices are becoming too high for most Americans to afford a home in many markets. This demand is being filled in by people investing from abroad. I think a saving grace for Cleveland and most Midwest markets is that housing is very affordable. It may take a few decades to play out but the oversupply of new luxury apartments and condos along with unaffordable housing along the coasts will drive people back to the Midwest much like air conditioning drove people to the Sunbelt. Of course, I could be wrong, we'll see.

 

Portland has supply issues due to geography but the national average was up 6%. A lot of cities have areas to build affordable housing but there's no demand to do so until prices compared to wages get back to more sane levels, like they were in, say, the early 1990s. It won't get there until people move back to places that are affordable. Two recessions away? Who knows?

Manufacturers laying foundation for deals

April 03, 2016

By RACHEL ABBEY MCCAFFERTY

 

It’s a pretty good time for anyone looking to buy or sell a manufacturing company.

 

Experts expect a strong 2016 for merger and acquisition activity in the sector, though some said the year was off to a slightly slow start.

 

Last year, though, was particularly strong for manufacturing deals; a report from PwC US found that deal volume in industrial manufacturing was the highest in the past 10 years, though dollar volume was down. There are some factors, like the availability of affordable financing, that is creating a good environment for M&A activity across all sectors, but other issues, like the need to stay competitive technologically, are driving deals specifically in manufacturing.

 

This M&A activity is apparent with some high-profile deals currently underway in Northeast Ohio — namely Cleveland-based paintmaker Sherwin-Williams Co.’s plan to purchase Minneapolis-based Valspar Corp., and North Canton ATM manufacturer Diebold Co.’s takeover attempt of Wincor Nixdorf of Germany.

 

MORE:

http://www.crainscleveland.com/article/20160403/NEWS/160409949/manufacturers-laying-foundation-for-deals

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

Cleveland should call up PayPal as soon as possible and pitch them:

 

http://money.cnn.com/2016/04/05/technology/paypal-north-carolina-lgbt/index.html

 

Toronto accelerated their development by grabbing Montreal's bank HQs during the political uprising in Quebec in the 1970s. One can hope Cleveland is on the ball and on the phone to unhappy companies in North Carolina. Cleveland already has grabbed GMAC from North Carolina. Let's keep it going.

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

If PayPal is making a statement about gay rights in this move, Ohio probably isn't making the short list. Also a shallow labor pool for that kind of work. Never hurts to call, but this is pretty much mission impossible.

Cleveland should call up PayPal as soon as possible and pitch them:

 

http://money.cnn.com/2016/04/05/technology/paypal-north-carolina-lgbt/index.html

 

Looks like they did just that.

 

http://www.cleveland.com/metro/index.ssf/2016/04/cleveland_leaders_invite_paypal.html#incart_river_mobile_home

 

Cleveland leaders invite PayPal here after firm snubs North Carolina

CLEVELAND, Ohio -– Civic Leaders have invited PayPal to develop a global operations center here, after the company cancelled plans to set it up in North Carolina in response to that state approving measures excluding gays and transgender people from legal protections.

...

The invitation was extended to PayPal CEO Daniel Schulman via a letter signed by a number of prominent Clevelanders.

...

Signatories include such heavyweights as County Executive Armond Budish; Cuyahoga County Council President Dan Brady; Albert Ratner, co-chairman emeritus, Forest City Realty Trust; Joe Marinucci, president and CEO, Downtown Cleveland Alliance; Joe Cimperman, president, Global Cleveland; David Gilbert, president and CEO, Destination Cleveland, Greater Cleveland Sports Commission; Chris Ronayne, president and CEO, University Circle Inc.; Paul Dolan, president, Cleveland Indians; Paul Clark, regional president for Northern Ohio, PNC Bank, and Fred Geis, principal in the Geis Companies.

why advertise that you're doing such? now every city in the country will do the same if they weren't quietly doing so already.

It's politics. Never miss an opportunity for good pub.

Doesn't Ohio also lack protections for gay people? I mean what differentiates us from North Carolina.

^NC's state law doesn't just lack protections, it prevents localities from fully enforcing their own locally-enacted anti-discrimination measures.

^Yes, the City of Cleveland (and some other Ohio municipalities) have their own anti-discrimination laws that cover sexual orientation and gender identity with respect to housing, public accommodation, and employment: http://bit.ly/1MmiPck

 

And if you think the Ohio statehouse would change its mind about this issue based on some lobbying from the City of Cleveland, I have a bridge to sell you. This is a live part of the culture war in a state like Ohio. Whenever the issues bubbles up in the statehouse (with support from Cleveland politicians), leaders in the majority party make moronic non-statements, like "we already have anti discrimination laws in Ohio." In most of the state, it's legal to discriminate based on sexual orientation, even without any religious basis. That's not an oversight, that's the preferred policy.

why advertise that you're doing such? now every city in the country will do the same if they weren't quietly doing so already.

 

I'm sure they were anyway... this is a good move for them, though, as it shows they are trying to be proactive.  Cleveland may or may not have a chance at landing something like this, but this public "pitch" may show other businesses that this area is willing to work with them one way or another to get their business to move or expand here.

  • Author

According to the Bureau of Labor Statistics, Cleveland's labor force is at it's lowest point since 1990.  What is making the numbers fall off a cliff?

 

Year       Period         labor force employment unemployment     unemployment rate

 

1990 Jan           1019784     968960       50824               5.0

 

2016 Jan           1012693     963449       49244               4.9

^I think there was a related discussion recently in the Obama presidency thread. That labor force number is the combination of (1) a stagnant or declining total number of adults, (2) a growing share of the total adult population this aging out of the workforce (retirement), and (3) a growing share of working-age adults opting not to work or look for work for other reasons (disability; enrolled in college without working, etc.). Whatever the cause, it's not good.

Is it really not good? I recall an article which stated that some 100,000 Baby Boomers are retiring in Northeast Ohio. Perhaps that has gotten underway and there aren't sufficient numbers of persons filling those vacancies?

 

That may be borne out in the fact that unemployment in less now than it was in 1990. But the missing piece of information is how many jobs are available and unfilled? If that's a high number, then it means the region isn't able to fill jobs vacated by retiring Boomers. That could be a very good thing if those jobs are filled soon because it could boost the population. But it could be a very harmful thing if employers can't fill the jobs and instead move them to regions where they can fill them.

 

 

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

  • Author

I don't know what to make of the numbers from the BLS anymore.  March's preliminary employment numbers are the highest they've been since 2008 (post crash), and the March labor force numbers are now the highest since 2011.  I've been concerned with these numbers because obviously with job growth comes population growth, and I think we all want to see the region prosper again.  I'm hoping the region will be at the very least able to break even by the next census and that perhaps this will be the last decade of stagnation that Clevelanders will see.

According to the Bureau of Labor Statistics, Cleveland's labor force is at it's lowest point since 1990.  What is making the numbers fall off a cliff?

 

Year       Period         labor force employment unemployment     unemployment rate

 

1990 Jan           1019784     968960       50824               5.0

 

2016 Jan           1012693     963449       49244               4.9

 

Beyond the macro stuff being discussed only Pittsburgh and Houston have slower job growth y-o-y than Cleveland when looking at the top 30 metros over the first three months of the year. Part of the labor force decline is simply people moving away to areas with better employment opportunities. Almost every metro in the nation has recovered job losses since the '08 recession, Cleveland is not one of those.

 

I don't know what to make of the numbers from the BLS anymore.  March's preliminary employment numbers are the highest they've been since 2008 (post crash), and the March labor force numbers are now the highest since 2011.  I've been concerned with these numbers because obviously with job growth comes population growth, and I think we all want to see the region prosper again.  I'm hoping the region will be at the very least able to break even by the next census and that perhaps this will be the last decade of stagnation that Clevelanders will see.

 

There's a very low probability that the Cleveland MSA is not going to break even by the next census. There's no data indicating Cleveland is an economic turnaround that will vault it past other metros and make the area more attractive. The city will probably lose 15-20k or between 2010-2020. Looking at the MSA data it looks like the city of Cleveland probably lost another 2k last year alone.

So my mother's house has been on the market for three years and it finally sold. Meanwhile my late-father's house has been on the market for nearly six years and it finally sold. I wondered if it was was part of a trend. Apparently it is...

 

RITES AND RAINMAKERS

The early read on Spring selling is for more slow mojo rising.

http://www.builderonline.com/builder-100/strategy/rites-and-rainmakers_o

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

ACE Report: Energy slowdown leads to a down March in region

April 22, 2016

By JAY MILLER

 

Continuing its roller-coaster ride, Northeast Ohio lost 375 jobs in March, according to the latest Ahola Crain’s Employment (ACE) Report. The March loss was preceded by a February increase, which was preceded by a January loss and a December increase.

 

The longer, year-over-year gain, however, is positive, with Northeast Ohio employment up 3,316 jobs, a gain of 0.29%.

 

“The regional economy is expanding and is in better shape than many expected (given the) uncertainty caused by the volatile financial markets that disrupted economic activity earlier this year,” said economist Jack Kleinhenz, who compiles the ACE data, referring to stock market ups and downs that followed the price of oil.

 

MORE:

http://www.crainscleveland.com/article/20160422/NEWS/160429948/ace-report-energy-slowdown-leads-to-a-down-march-in-region

"In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck

According to the Bureau of Labor Statistics, Cleveland's labor force is at it's lowest point since 1990.  What is making the numbers fall off a cliff?

 

Year       Period         labor force employment unemployment     unemployment rate

 

1990 Jan           1019784     968960       50824               5.0

 

2016 Jan           1012693     963449       49244               4.9

 

 

I wonder how the Akron MSA is doing with these same stats? I just think knowing that gives a better picture of the region.

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