WCPO: Historic property value hikes irk county auditors

The large increases in housing values can be attributed to market conditions including high demand and low supply, said David Brasington, PhD, James C. and Caroline Kautz Chair in Political Economy and professor of economics at UC's Carl H. Lindner College of Business.

“When you reduce the supply of something, you push up the price,” he said. “Housing is probably going to stabilize at these levels … we don’t see any dramatic change in the near future.”

Low mortgage rates in recent years led more people to buy more expensive homes, Brasington said. Additionally, flippers and investors have purchased heavily in the Cincinnati region, driving costs higher, he said.

“My thoughts are it's probably suburbanization. It’s more people buying houses, they want new houses, especially people with a lot of income,” Brasington said. “The edges of Cincinnati are where the new housing can be built the most, so that’s where the highest demand is, that’s where they’re putting up the biggest houses, and prices will go up for that reason.”

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