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Should You Invest In The Cincinnati Real Estate Market?

Cincinnati Real Estate Market

Cincinnati is a hot housing market. Cincinnati, like a number of other Midwestern cities is ticked off among those that used to be great. What many don’t know is that these cities are experiencing a renaissance of sorts, whether it is a shift from manufacturing to services or inventing whole new industries like biotech. Let’s look at the state of the Cincinnati real estate market by finding up-to-date trends in the Cincinnati market, including information about average listing price, average days on market and the forecast of the Cincinnati housing market.

cincinnati real estate market

Cincinnati Real Estate – Market Trend And Forecast 2018

According to Zillow.com, the median home value in Cincinnati is $134,900. Cincinnati home values have gone up 7.1% over the past year and Zillow predicts they will rise 7.1% within the next year. The median list price per square foot in Cincinnati is $125, which is higher than the Cincinnati Metro average of $119. The median price of homes currently listed in Cincinnati is $199,900. The median rent price in Cincinnati is $1,362, which is higher than the Cincinnati Metro median of $1,350.

Cincinnati Real Estate Market Forecast

Graph Courtesy – Zillow.com

Cincinnati Real Estate For Sale Statistics 2018

As per Trulia.com, Cincinnati real estate market trends indicate an increase of $5,000 (3%) in median home sales over the past year. The average price per square foot for this same period rose to $118, up from $112. Trulia has 2,843 resale and new homes for sale in Cincinnati. These include open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price for homes in Cincinnati for May 9 to Aug 8 was $160,000 based on 1,644 home sales.

Cincinnati Real Estate Market Trend

Graph Courtesy – Trulia.com

The median rent per month for apartments in Cincinnati for Jul 12 to Aug 12 was $1,200. Real estate market trends in Cincinnati show a 0% rise in median rent per month. Average price per square foot for Cincinnati was $118, an increase of 5% compared to the same period last year.

Cincinnati Real Estate Market Trends 2018

Graph Courtesy – Trulia.com

According to Movoto.com statistics, the median list price in the Cincinnati real estate market is $249,900. The median list price in Cincinnati went down 3% from July to August. Cincinnati’s home resale inventories is 1,620, which increased 5 percent since July 2018. The median list price per square foot in Cincinnati is $124. July 2018 was $126. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in August.

Cincinnati Real Estate Market Trends

Graph Courtesy – Movoto.com

The Cincinnati housing market has an unusual combination of consistently high home values with a low cost of living, which makes it a solid choice for the savvy shopper. Cincinnati have all the amenities of the urban lifestyle; access to nightlife, shopping, great restaurants and culture, along with good schools and some beautiful green spaces.

Foreclosures in Cincinnati OH

As per statistics from Zillow.com, in Cincinnati 2.8 homes are foreclosed (per 10,000). This is greater than the Cincinnati Metro value of 1.9 and also greater than the national value of 1.6 The percent of delinquent mortgages in Cincinnati is 1.7%, which is higher than the national value of 1.6%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Cincinnati homeowners underwater on their mortgage is 13.1%, which is higher than Cincinnati Metro at 9.7%.

According to Realtytrac.com, there are currently 2,209 properties in the Cincinnati housing market that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,977. In July, the number of properties that received a foreclosure filing in Cincinnati, OH was 26% lower than the previous month and 48% lower than the same time last year.

  • Number of Foreclosures in Cincinnati = 2,209
  • Number of Homes for Sale in Cincinnati =1,977
  • Recently Sold Properties in Cincinnati  = 4,949

Home sales for June 2018 were down 93% compared with the previous month, and down 76% compared with a year ago. The median sales price of a non-distressed home was $143,167. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.

Cost of Living In Cincinnati

Housing is the biggest factor in the cost of living difference for any city around the globe. Cincinnati has one of the most affordable housing markets in the nation. If you’re considering Cincinnati for your retirement city, you’ll want to know how it measures up to other cities across the US. According to Forbes, the cost of living in Cincinnati is 7.6% below the national average, but this number also breaks down into different divisions. Here is a brief overview of how expensive it might be to live in Cincinnati.

The average cost of living in Cincinnati Ohio is $42,271 (2016). The cost of living index in Cincinnati is 34.59% lower than in New York. The average salary in Cincinnati is $75,201. Housing is more expensive than in Memphis but still affordable, with the median house valued at $134,900, according to Zillow. The rent expenses gobble up 16.31 percent of total earnings for renters who live alone, on average. Whether you are an expat or a US citizen, in order to calculate the total cost of living in Cincinnati, the first thing to look into is the housing cost in Cincinnati. For a one-bedroom apartment for rent in Cincinnati, the average rent is around $909 a month while a two bedroom will cost you around $1,203. Basic utilities, including electricity, heating, water and garbage come in right around the national average, or about $128 for a 915 square foot apartment. As per Areavibes.com’s statistics, these are some of the relative figures of the cost of living in Cincinnati.

  • The cost of living in Cincinnati is 2% lower than the Ohio average.

  • The cost of living in Cincinnati is 11% lower than the national average.

  • The cost of housing in Cincinnati is 33% lower than the national average.

  • Ohio general sales tax is 13% higher than the national average.

  • Ohio state income tax is 78% lower than the national average.

The city’s biggest employers include grocery chain Kroger Co., the University of Cincinnati and Procter & Gamble. While not as well known as other Midwestern cities, in 2016, Cincinnati was rated as one of the best places to live in the U.S. by U.S. News & World Report. The city of Cincinnati is currently growing in the business world and attracting new people interested in growing their careers. If this trend continues to grow, the cost of housing in the Cincinnati area may continue to rise which means it would become a bit more expensive to live in Cincinnati, OH. The average meal at an inexpensive restaurant will cost you around $12 in Cincinnati while you could get a three-course meal for two at a mid-range restaurant for about $45. For groceries, a gallon of regular milk runs around $2.66 and a dozen eggs comes in around $2.23.

Transportation in Cincinnati is just slightly below the national average but slightly higher than the entire state of Ohio. Gas runs about $3.40 in the city of Cincinnati, but local transportation is on the low end of the spectrum at around $1.75 for a one-way ticket on local transport. The price of Monthly ticket public transport in Cincinnati, Ohio comes around $93. Despite comparatively affordable rent and Cincinnati’s low cost of living, buying a home may still be the most financially viable long-term investment. Cincinnati is one of seven U.S. cities with housing markets that are below their long-term pricing trend.

11 Reasons To Invest In The Cincinnati Real Estate Market

Cincinnati itself is a mid-sized city. It is home to around 300,000 people, making it the third largest city in Ohio. The Cincinnati metropolitan area is home to over two million people. It is growing faster than the nation as a whole, though this is partially due to its recovery from a low point during the Great Recession. It is recovering home values and growth in cheap markets can yield the greatest ROI. Let’s find out 11 reasons to invest in the Cincinnati real estate market

1. Cincinnati Real Estate Market Is Growing Again

Cincinnati was ranked the fastest growing power in the Midwest in terms of percentages. It is the seventh largest economy in the Midwest and 28th largest in the United States. The median age, here, is a positive sign. The media age for residents is 32, while the average age of people living in Ohio is 39. There are people coming here and staying here, raising their children here. That demographic momentum will keep Cincinnati going strong for years to come.

2. Cincinnati Real Estate Is Affordable

Cincinnati was recently ranked the most affordable place for renters to live alone. The median home price in Cincinnati was around $160,000 in 2016. The average townhome cost around $140,000, while the average detached home cost around $200,000. All these prices are lower than the Ohio (and national) average.

This isn’t a surprise when you learn that the cost of living here is 8% below the national average. Cincinnati has an unusual combination of consistently high home values with a low cost of living, which makes it a solid choice for the savvy real estate investors. Cincinnati have all the amenities of the urban lifestyle; access to nightlife, shopping, great restaurants and culture, along with good schools and some beautiful green spaces.

Once such affordable neighborhood in Cincinnati is Oakley. Oakley, Cincinnati is on the rise as a neighborhood for young professionals to get their start. Between its affordable rent, thriving business district, ample shopping, and cool and diverse locals, you’ll never want to leave.

3. The Tiny Home Market Is Unusually Strong

If you’ve heard of Cincinnati lately, there is a fair chance it is because one of several Cincinnati small home builders popped up in the news or was the star of a tiny house reality show. Whether you want to build tiny homes to provide affordable options on the Cincinnati real estate market or think that tiny homes built here and exported elsewhere will help the local economy is your decision. Nearby Dayton has jumped on the bandwagon and been at the forefront of approving “tiny home” projects.

4. Jobs Keep People Here and Attract New Ones

Unemployment in Cincinnati is around 4%. That’s almost half the rate it was at the peak of the Great Recession. The economy has shifted somewhat from manufacturing to services, though manufacturing remains a major employer. Several Fortune 500 companies are located here, though Kroger is the largest. The University of Cincinnati is the second largest, though it isn’t even the only major college in town. Healthcare, though, accounts for around a fifth of all jobs in the city.

5. University Of Cincinnati Real Estate

Landlords love populations that cannot or will not buy a home, so they’re certain to rent. Military bases provide such a large population of stable renters, and so do colleges. The University of Cincinnati provides a large student body (more than 40,000) that lives on and off campus. Union Institute and University hosts more than a thousand students, while the Christ College of Nursing has almost a thousand students. Cincinnati State Technical College has around a thousand students. Cincinnati Christian University has almost a thousand students. Xavier University educates over six thousand students. This means there are many opportunities in the Cincinnati real estate market for those who want to cater to students.

6. The Military Market

Wright-Patterson Air Force Base is about an hour drive from Cincinnati. For those investing in the Cincinnati real estate market, especially in the northern suburbs, could tap into this market with affordable single family homes conveniently located for those commuting to the base. If you are looking for something closer to home, the Blue Ash Air National Guard Station supplies a constant stream of renters.

7. Cincinnati Rental Market Is Growing

Cincinnati was hit very hard by the Great Recession, the deep recession that officially started in 2008, officially ended around 2010, and in reality didn’t completely fade away until 2016. Cincinnati finally saw the region’s labor force hit the same number in June 2018 that it had in June, 2008. This means that many residents have been out of work for years, their credit preventing them from being considered for a mortgage even if they have a job. This explains why around 60% of households in Cincinnati rent and the Cincinnati rental market will continue to grow in the next few years. Though many are back to work or looking for work, it will be years before the city has a majority owning their own homes.

8. Cincinnati Forecast Shows Long-Term Growth

The Cincinnati forecast shows that the housing market is truly expanding for a number of reasons. The Dayton and Cincinnati metro areas are expanding along I-75 and expected to combine into one metro area by 2040. This provides a known area where businesses and eventually people will move, so those who build up or invest in Cincinnati real estate here will have excellent future returns.

The Cincinnati forecast also shows that the real estate market certainly isn’t hurt by the Amazon distribution centers popping up in nearby Dayton. It doesn’t matter if the property is in the Cincinnati housing market if it is close to new employers like this.

9. Cincinnati Real Estate Market Is Landlord Friendly

Ohio is more landlord friendly than a number of other Midwestern states. There’s no maximum security deposit. There’s no statute stating how much notice you must give before increasing rent. There is no law stating that a tenant must be allowed to make repairs and deduct said cost from the rent.

You can evict a tenant three days after they’ve failed to pay the rent, and the lease can be terminated three days after notice that they’ve violated the lease. There’s no statute saying the landlord has to hold onto abandoned property for weeks waiting for the tenant to get it. The Cincinnati housing market is one of the best in the area for real estate investors.

10. Cincinnati Apartments For Rent – Riverfront Redevelopment

Cincinnati has a number of sports venues downtown, but the true heart of the city is the downtown riverfront. Signs of redevelopment include the new 45 acre park between the Great American Ballpark and Paul Brown Stadium and a wave of new condos and retail buildings. New restaurants and parking garages sit alongside new shops and apartment buildings. The Cincinnati apartments for rent are increasing due to riverfront re-development . A new report by Apartment List, a privately held online rental company based in San Francisco, placed Cincinnati at No. 32 on its list that ranks the 100 largest U.S. cities by year-over-year rent growth. Among the top 25 cities listed, just six increased growth rates in their rental markets between 2017 and 2018. Click here to view the study on the Apartment List website.

Downtown Cincinnati has developed from a relatively seedy neighborhood to one that’s packed with residences, restaurants, bars, attractions, and various other things to do. This area of Cincinnati is growing with number of new residential buildings, including everything from apartments to lofts.

Whether you want to buy a building to renovate into condos or find bungalows perfect for infill development, the Cincinnati real estate market could yield strong return on the investment if you’re a short trip from all of the new construction by the Riverfront. Note that this is one of the few options for those who want to invest in the upscale Cincinnati housing market.

11. Cincinnati Condos And Rental Properties

According to the data published in Huduser.gov, the rental housing market in Cincinnati is balanced with an estimated rental vacancy rate of 7.3 percent, down from 11.8 percent in April 2017. The apartment market was slightly tight with a 4.3-percent vacancy rate during May 2017, unchanged from 1 year earlier. The average rent for an apartment in this submarket is currently $847, an increase of $21, or 3 percent, from a year earlier.

Since 2014, growing demand for apartments in downtown Cincinnati and state tax credits resulted in the highest level of multifamily construction, as measured by the number of multifamily units permitted, in the Hamilton County submarket since 2012. A large share of rental housing demand during the next 3 years is likely to occur in and near the Cincinnati city center because of the Ohio Historic Preservation Tax Credit Program and revitalization efforts. The 1,450 units currently under construction will satisfy a portion of the demand during the next 2 years.

For more information on the The Cincinnati Housing Market Area (HMA) which includes 15 counties in Ohio, Kentucky, and Indiana and is coterminous with the Cincinnati, OH-KY-IN Metropolitan Statistical Area, you can view this COMPREHENSIVE HOUSING MARKET ANALYSIS from Huduser.gov.

Tips For Investing In Cincinnati, OH Real Estate

The Cincinnati real estate market is on the upswing and looking strong for the foreseeable future. It provides a number of opportunities to investors, regardless of the market you want to invest in.

If you are a beginner in real estate investment business, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Cincinnati, OH.

Another housing market in Alabama to go for diversifying your investments is the the Huntsville Al real estate market. Huntsville is a solid market with long term potential, excellent opportunity at the moment, and market niches any investor could take advantage of. The median rent for an apartment in Huntsville is around $1000 a month. When you factor in the premium charged for the privacy and space you get when renting a home, landlords charge much higher monthly rents for detached single family homes.

Similarly, Montgomery, Alabama is another great market for investing in real estate for your retirement. Montgomery Alabama Real Estate Market is a strong cash-flow market due to strong demand for rental housing. And this is not entirely due to the 8 colleges and universities in the city. The cost of living here is 5% lower the U.S. average while there are a number of good paying jobs in the area.

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.


References

Cincinnati demographics and economy
https://en.wikipedia.org/wiki/Cincinnati
https://www.areavibes.com/cincinnati-oh/demographics/
https://www.neighborhoodscout.com/oh/cincinnati/demographics

Colleges
https://www.collegesimply.com/colleges-near/ohio/cincinnati/

Employment figures for Great Recession
https://www.cincinnati.com/story/money/2018/07/25/cincinnati-economy-hits-records-jobs-employment-workforce-great-recession-recovery-complete/810706002/

Percentage who rent
https://www.infoplease.com/us/ohio/demographic-statistics-5

long term growth opportunities
https://www.forbes.com/sites/forbesrealestatecouncil/2018/07/19/the-hidden-gem-of-turnkey-real-estate-investing-is-in-ohio/#28f553101584

Landlord Friendly                                                                                                https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
rank 42

Riverfront
https://cincinnatiusa.com/things-to-do/attractions/smale-riverfront-park
https://www.cincinnati.com/story/money/2018/01/08/banks-searches-developer-tenants-fret-over-projects-future/997389001/

Tiny Homes
https://www.cincinnati.com/story/news/2015/05/26/tiny-houses-come-otr/27787571/
https://www.bizjournals.com/cincinnati/news/2016/09/20/exclusive-new-cincinnati-firm-building-tiny-homes.html
https://www.daytondailynews.com/news/tiny-home-dwellers-have-big-hopes-for-dayton/8uFR8SfAcV6axTf3XtpIiN/

Market Trends and Forecast                                                                                          https://www.movoto.com/cincinnati-oh/market-trends                                          https://www.trulia.com/real_estate/Cincinnati-Ohio/market-trends https://www.realtytrac.com/statsandtrends/oh/hamilton-county/cincinnati

Cost of living in Cincinnati                                                                                  https://www.senioradvisor.com/cincinnati-oh/whats-the-cost-of-living-in-cincinnati-oh https://www.areavibes.com/cincinnati-oh/cost-of-living

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.


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