The Akron Cleveland Association of REALTORS (ACAR) partnered with the Economics Center for Education & Research, University of Cincinnati to assess the impact of point-of-sale (POS) inspections on Ohio’s housing market. These inspections, which require homeowners (or the homebuyer) to complete necessary repairs before a property can be sold or ownership transferred, are a barrier to homeownership, hindering housing transactions, reducing home values, and limiting wealth-building opportunities for homeowners.
The study found that municipalities with POS inspections face several challenges.
- Significantly higher vacancy rates (24.9% vs. 7.1% in non-POS areas)
- Slower housing sales, with transaction rates per 1,000 households averaging 45.6 in POS areas versus 52.0 in non-POS areas
- Homes in POS municipalities are sold for an average of 13% less than similar properties in areas without POS requirements. The decrease in sale prices reduces homeowners’ equity, limiting their ability to build wealth through property ownership.
- POS Inspection communities experience higher unemployment rates and lower educational attainment, exacerbating local economic challenges.
Despite these negative effects, POS inspections do not appear to reduce the overall volume of housing transactions. This suggests that the barriers they create may drive potential buyers to seek homes in municipalities without inspection mandates.
The findings underscore the need for policymakers to reconsider the impact of POS ordinances, as they continue to limit homeownership opportunities and wealth-building potential for many Ohioans.
View the full report: ACAR Point of Sale Final Report.
