When compared to other cities and regions across the country, Northeast Ohio offers more bang for your buck, for businesses and individuals alike. In fact, according to Moody’s Analytics, the cost of doing business in Northeast Ohio is almost 10% lower than the U.S. average. Not only can businesses operate affordably in our region, their employees can enjoy a high quality of life as the region’s cost of living is 11.4% lower than the national average.
Business Cost Advantages:
“Cost of business,” as defined by Moody’s Analytics, takes into account four components: labor costs, energy costs, state and local taxes, and office rents. Northeast Ohio provides advantages in each of these areas, as the below data illustrates.
- Northeast Ohio businesses pay a median wage of $19.55, which is well below most major markets. New York, for example, pays a median wage of $26.26.
- Northeast Ohio’s average cost for industrial property, $3.90 per square foot, is 33% lower than the national average of $5.83. It is less than half of the $9.17 businesses pay in Los Angeles, and even beats out peer markets such as Buffalo ($4.68).
Cost of Living Advantages:
In addition to its many business-related benefits, Northeast Ohio also offers many cost advantages for its workforce. With a cost of living that is 11.4% lower than the national average, Northeast Ohio employees can stretch their paychecks further when compared to other markets. As the below chart illustrates, Northeast Ohio is among one of the most affordable places to call home.
Take a 5-bedroom, 5-bath home in Rocky River as an example. While a home of this size will cost approximately $329,000 in Northeast Ohio, that same home will cost upwards of $900,000 in Silicon Valley and more than $850,000 in Washington D.C. As such, our region’s affordable cost of living is among one of its greatest attributes. In fact, in a recent ranking of the “15 Best Places to Live in the U.S.”, the New York Post included Cleveland, citing its affordable home prices as one of the many reasons someone may want to live in the region.
While many factors impact where a company chooses to operate or a person decides to live, Northeast Ohio excels in a very important area: affordability. As businesses and individuals look to lay down roots, Northeast Ohio shines as a prime destination.