Central Ohio Economic Outlook: Job Growth Slows in 2025 Amid Housing Price Surge

The rapid growth of Central Ohio has brought with it both excitement and challenges, as population and business expansion are accompanied by soaring housing prices. However, experts are predicting a slowdown in 2025.

Dr. Bill LaFayette, an economist, forecasts that the region will see only a modest increase of 4,400 jobs, a 0.4% rise, in 2025.

This follows a disappointing 2024, where the area added only 5,200 jobs, significantly lower than the initial forecast of 9,800. LaFayette attributes the slower job growth to a mismatch between workforce skills and employer needs, despite a growing labor force.

While sectors like construction and healthcare continue to thrive, LaFayette warns that broader economic prospects for the region remain uncertain. Dr. Joyce Chen, an economist at Ohio State University, remains cautiously optimistic, pointing to the area’s strong regional fundamentals.

However, she notes that national policies and potential shifts in state legislation could impact the future economic landscape.

The city’s commercial real estate market is also facing challenges, with notable tenant losses and shifts, such as Huntington Bank’s transfer of downtown properties to a nonprofit developer and significant vacancies in the KeyBank building.

These changes could pave the way for affordable housing initiatives, especially with new zoning proposals in the works, according to Chen.

Looking ahead, the uncertainty surrounding national policies, such as tariffs, raises concerns for the region’s economy.

LaFayette warns that tariffs could have negative effects on consumers and businesses in Central Ohio, as retaliatory tariffs from other countries could compound the economic strain.

Despite these short-term challenges, both experts agree that the region’s long-term outlook remains positive, though it will be essential to monitor the situation closely as policy and economic shifts unfold.