Incomes and home values climb along with poverty rate

New U.S. Census data points to rising median incomes and property values in Medina County, but an increase in poverty rates could indicate that recovery from the 2008 economic crash and ensuing recession has not extended to everyone. Medina County's median household income has risen to $75,786, a 3.7 percent jump from 2017 but still below numbers seen in the area prior to 2007, the year the recession began. The county's median income ranks fourth in Ohio among the state's 39 largest counties included in the report and falls well above Ohio's average median of $56,111 as well as the U.S.'s average of $61,937. Roughly half of the counties measured fell above the state median household income while the remainder registered below. Between 1999 and 2017, Medina's median fell by 10.2 percent while Ohio's dropped by 9.4 percent and the U.S's by 2.4 percent over the same period. The report estimates that 6.8 percent of Medina County residents lived below the poverty line last year. That's up from 5.7 percent in 2017 but down from a recent peak of 10.2 and 7.7 percent in 2011 and 2012, respectively. Medina County Auditor Mike Kovack said a continued pattern of income tax cuts at the federal and state level in conjunction with increases to sales taxes and other local fees has put further strain on middle and working class homes that aren't always apparent without digging beneath the surface. "The tax structure without question is putting a beating on the middle class and particularly the lower end of the spectrum, the poor," Kovack said. "We've gone from progressive taxes in Ohio and in the country to more regressive taxes that put a lot more stress on those making less money. You're seeing it across the country as well as here in Medina County. It's been a trend going on for quite a while. In Ohio, where we're constantly decreasing the income tax rate but increasing the sales tax rate, this is what you get. "Wages not keeping up with profits has also played a hand. It's just basic economics 101." Following the 2008 crash, Medina County's median home values gradually fell from just over $225,000 to $185,590 by 2014. The report puts 2018's median at $208,800, still below pre-crash levels but roughly $50,000 to 70,000 higher than averages seen in nearby counties such as Lorain, Cuyahoga, Summit and Wayne. Housing starts offer another bit of information outside of census data to gauge the local market, where fewer, but more expensive homes are reportedly being built. The Medina County Building Department announced Tuesday that there were 27 new housing starts for August, 14 fewer than the same date in 2018. The average construction cost of the new homes was $357,327, considerably higher than 2018's $281,938. Medina Township with six new homes was tops in August, one more than Sharon Township's five. Medina Township's 37 new home starts year-to-date leads the county. Sharon was second with 27. Kovack said low unemployment numbers are not always an accurate barometer for measuring the health of an economy or workforce, saying that many people are taking on one or more jobs that don't pay wages matching the cost of living. "The CEO to average worker wage has just gotten out of control," he said. "That's a problem. The real strength of America, through its history, has been the middle class. People aren't making the wages they used to in terms of buying power. Out of the middle class comes your new entrepreneurs and people willing to take risks on new things. You're seeing a higher concentration of wealth among the rich and lower median incomes are one of the results of that. Combine that with this pattern of taxation and the result isn't surprising at all." "At the county level, I'm not sure how much power we have to really affect all of this," Kovack later said. "Fortunately, in Medina County, we often times do a better job of providing services to those at the lower end of the spectrum simply because we don't have as much poverty. You look at some of the problems we're dealing with here but you get a much different perspective in Cuyahoga, Lorain, Summit, Wayne and Lake counties. If you're poor according to federal standards, you're much better off being in Medina County than other nearby areas." Phyllis Siedler, of the Brunswick Food Pantry, said her organization is not seeing an uptick in months visit to coincide with census data related to an increase in the poverty rate, but she is also not seeing a decline is service demands. "We stay pretty stable," Siedler said Wednesday. She described a clientele that is very mobile, often moving in and out of the area as housing stability changes, and consisting of people who are working, but in stay need. "So many people could be coming, like seniors, that just don't," she said. John Garofalo, vice president of community investment for the Akron Community Foundation, agreed with Kovack on many of the modern difficulties facing workers and said that poverty can often have a domino effect that's difficult to escape from. "We haven't seen much uptick from the normal grant requests that we get," he said. "But there are problems. People are taking jobs without a livable income. They're gaining employment but not meeting their basic needs and having to seek out assistance. It's great that people are finding jobs, but if the income needs aren't meant the intended purpose isn't served." Recent studies have concluded that a wage of just over $16 an hour is required in Ohio to afford a two-bedroom apartment without going into debt or relying on assistance, nearly double the current state minimum wage of $8.55. "It's definitely a domino effect," Garofalo said. "Someone can have a mental illness where it impacts their ability to hold a job, raise a family, or continue with schooling. We see it all the time and it's why our social service organizations are so inundated with people who need assistance. Our grant priorities will go along with the needs we see in our communities but I don't see those needs being resolved any time soon." Contact reporter Jonathan Delozier at (330) 721-4050 or jdelozier@medina-gazette.com.