The need for more affordable housing in central Ohio is becoming a business issue, according to a survey of executives who say addressing the problem is the No. 1 thing that could be done to improve the region's business climate.

Larger business incentives, public transportation improvements, education and tax reform also were frequently mentioned as top issues in Columbus CEO's annual survey on economic conditions in the region. The survey is conducted in conjunction with the magazine's CEO of the Year awards program.

"Affordable housing has really ratcheted up in importance," said economist Bill LaFayette, owner of local economic consulting firm Regionomics who completed the analysis of the survey for CEO. "It's certainly something the community is worried about."

Of the C-suite executives in companies, nonprofits and government agencies who were surveyed, 38% identified addressing affordable housing as the one thing that could be done to improve the regional economy, up from 23% in the prior year's survey.

Increasing business incentives were favored by 22%, up from 17% a year ago, and 17% said improving public transportation could improve the economy, compared with 9% in last year's survey.

Regional political, business and nonprofit leaders have stepped up efforts to take on a housing market that is becoming too expensive for many.

In November, voters approved Columbus' $200 million bond package for affordable housing that Mayor Andrew J. Ginther and other city officials say will provide funding for homes for lower-income residents.

"At least it's getting attention now,’’ LaFayette said.

An affordable cost of living is one reason the Columbus region is an attractive business location, according to the survey. A collaborative culture, an educated workforce, a welcoming community, a family-friendly environment and quality health care help as well.

Housing prices have continued to climb in central Ohio even as home sales have gone down in recent months. The median sales price of a central Ohio home through the first 11 months of 2022 was $290,000, up 11.5% from the previous year.

The Intel project in Licking County figures to put even more pressure on housing prices. The Silicon Valley semiconductor company is investing $20 billion to build two factories in New Albany that will employ 3,000 workers and could draw thousands of construction workers and employees needed by Intel suppliers.

LaFayette said the result may be that people search out other cities in the region where housing costs are cheaper and there's more availability.

Executives in the survey see advantages and disadvantages to the Intel project.

The advantages are more job opportunities, increased economic activity and prosperity, and improvement in the quality of the region’s workforce, according to the survey results. Beyond housing, the project may put strains on infrastructure and services, and worsen an already tight labor force.

The survey said the top challenge facing business continues to be the availability of labor followed by the current cloudy economic climate where rising interest rates are threatening to push the economy into a recession.

Since the economy roared back to life after being shut down during the early days of COVID-19, businesses have complained about how tough it is to get workers. The region and the state show more job openings than unemployed workers.

Business leaders say they are generally satisfied with the quality of the region's workforce with only a quarter rating the quality low.

Inflation came up as a new economic concern on this year's survey with three-quarters of those surveyed believing inflation will get worse this year, even as recent data shows inflation starting to ease.

"So much of inflation is from supply chain bottlenecks," LaFayette said. "You shut down the economy for three months (because of the pandemic), it came roaring back when it opened. Of course, there are going to be bottlenecks."

The survey shows nearly half of those responding expect revenue to increase in the coming year. Meanwhile, 79% expect costs to increase at least 5% and a third expect an increase in profit.

Revenue and profit expectations are significantly weaker than last year, according to the survey.

The pandemic also has created a big change in where employees work.

More than 40% of organizations in the sample analyzed by LaFayette provide the ability to work at home at least part time, with 17% keeping many or all employees remote full time.

mawilliams@dispatch.com

@BizMarkWilliams

This article originally appeared on The Columbus Dispatch: What Columbus execs see as the biggest way to improve the economy