Cleveland, Ohio is one of the most popular cities in the United States, known for its rich history, culture, and economy. Its location along the southern shore of Lake Erie makes it a great place to live for those who love the outdoors, while its diverse population and strong job market make it a hub for businesses and entrepreneurs. The Cleveland housing market has seen its fair share of changes and challenges over the past year, reflecting a mix of local and national influences. The market is witnessing robust growth, with increasing home prices and a competitive yet balanced environment.
Current Cleveland Housing Market Trends in 2024
How is the Housing Market Doing Currently?
According to data by Redfin, in January 2024, the Cleveland housing market experienced significant growth, with home prices surging by 16.6% compared to the previous year. The median home price reached $105K, showcasing a robust market.
Key Market Indicators:
- Median Sale Price: The median sale price in Cleveland is 75% lower than the national average, making it an attractive option for homebuyers.
- Sale Duration: On average, homes in Cleveland sell in 35 days, reflecting a somewhat competitive market.
- Multiple Offers: Some homes in Cleveland receive multiple offers, indicating the demand for properties in the area.
- Sale-to-List Price: The sale-to-list price ratio stands at 95.7%, a 2.0-point increase year-over-year, highlighting the favorable conditions for sellers.
- Homes Sold Above List Price: Approximately 27.0% of homes sold above the list price, showing a 6.1-point increase compared to the previous year.
How Competitive is the Cleveland Housing Market?
The Cleveland housing market is moderately competitive, with homes selling in an average of 35 days. Some properties receive multiple offers, and the sale-to-list price ratio indicates favorable conditions for sellers.
Market Dynamics:
- Competition Level: Cleveland homes are in demand, with the average property selling 4% below the list price and going pending within 35 days.
- Quick Sales: Certain properties can sell for about 2% above the list price and go pending in approximately 10 days, demonstrating the rapid pace of some transactions.
Are There Enough Homes for Sale in Cleveland to Meet Buyer Demand?
The housing market in Cleveland is robust, with 326 homes sold in January 2024, representing an increase from 259 homes sold in the same period last year. The availability of homes aligns with the demand, providing options for prospective buyers.
From November '23 to January '24, 20% of Cleveland homebuyers considered moving out of the city, while 80% aimed to stay within the metropolitan area. Nationally, 0.71% of homebuyers sought to move into Cleveland from outside metros.
Top Cities Contributing to Cleveland's Population Influx:
- Los Angeles: Homebuyers from Los Angeles expressed a notable interest in moving into Cleveland.
- Wheeling: The city of Wheeling contributed to the migration trend, indicating a diverse range of relocations.
- New York: New York residents also showed a keen interest in making Cleveland their new home.
What is the Future Market Outlook for Cleveland?
Considering the current growth trajectory and favorable market conditions, the future outlook for the Cleveland housing market appears optimistic. The increase in home prices, coupled with a competitive but balanced market, suggests continued stability. With a median sale price 75% lower than the national average and a rising trend in home prices, the Cleveland housing market leans towards being favorable for sellers. The competitive dynamics and quick sales further support a seller-friendly environment.
Cleveland Housing Market Forecast for 2024 and 2025
What are the Cleveland real estate market predictions? According to Zillow, the average home value in Cleveland-Elyria stands at $211,712, marking a significant 6.4% increase over the past year. Homes in this region are moving swiftly, with an average time to pending status being approximately 14 days (Data through January 31, 2024).
Key Housing Metrics
1. Average Home Value
The average home value serves as a key indicator, reflecting the health of the housing market. In Cleveland-Elyria, this metric has experienced a robust 6.4% growth over the last year, reaching $211,712.
2. 1-Year Market Forecast
Looking ahead, Zillow's +4.4% 1-year market forecast (as of January 31, 2024) provides insight into the expected trajectory of the housing market in the coming months.
3. For Sale Inventory
With 4,482 properties listed for sale as of January 31, 2024, the for-sale inventory gives potential buyers an idea of the available options in the market.
4. New Listings
1,453 new listings in January 31, 2024, indicate the ongoing activity in the market, showcasing the continuous influx of properties for potential buyers to consider.
5. Median Sale to List Ratio
The 0.997 median sale to list ratio (as of December 31, 2023) is a crucial metric, indicating how close homes are selling to their listed prices. A ratio close to 1 suggests a strong and balanced market.
6. Median Sale Price
As of December 31, 2023, the median sale price in Cleveland-Elyria was $178,300, providing a benchmark for the overall pricing trends in the region.
7. Median List Price
The median list price, standing at $199,966 as of January 31, 2024, gives potential buyers an idea of the current pricing expectations in the market.
8. Percent of Sales Over and Under List Price
Examining the percentages of sales over and under list price (as of December 31, 2023), with 38.0% and 47.7% respectively, provides insights into the negotiation dynamics within the market.
Is Cleveland a Buyer's or Seller's Housing Market?
In Cleveland-Elyria, with a for-sale inventory of 4,482 properties as of January 31, 2024, and a median list price of $199,966, the market leans towards a balanced state. However, the percentage of sales over list price at 38.0% (December 31, 2023) indicates a level of competitiveness that may favor sellers. Prospective buyers should be prepared for negotiations, considering both the available inventory and pricing trends.
Are Home Prices Dropping in Cleveland?
Contrary to a decline, the data suggests a positive trend in home prices. The average home value in Cleveland-Elyria has witnessed a 6.4% increase over the past year, reaching $211,712 (Data through January 31, 2024). This appreciation reflects a resilient market, making it an environment where home values are on the rise.
Will the Cleveland Housing Market Crash?
As of the current data and market analysis, there is no indication of an impending housing market crash in Cleveland-Elyria. The steady growth in average home values, the balanced inventory, and positive forecast (+4.4% 1-year market forecast) point towards a stable and healthy market. However, it's essential to monitor economic factors and external influences that can impact the real estate market over time.
Is Now a Good Time to Buy a House in Cleveland?
Considering the current state of the Cleveland housing market, now can be a favorable time for potential buyers. The market is not experiencing a sharp decline in home prices, and the forecast suggests a positive trajectory. However, buyers should be prepared for a competitive environment, given the percentage of sales over list price. Ultimately, the decision to buy a house depends on individual circumstances, financial readiness, and long-term goals.
Cleveland Real Estate Investment Overview
Should you buy investment property in Cleveland? Looking for a home in Cleveland? These up-to-date Cleveland real estate statistics and trends will help you make smart investing decisions. You need to drill deeper into local trends if you want to know what the Cleveland market holds for the year ahead. We have already discussed the Cleveland housing market trends & forecasts for answers on why to put resources into this sizzling market. Cleveland is home to just under 400,000 people. The larger metropolitan area is home to roughly two million people.
That makes the Cleveland real estate market the 32nd largest in the country. If you include the Cleveland-Akron-Canton metro area, there are three and a half million people in the “combined statistical area”, making it the 15th largest metropolitan area in the United States. This century-old city was once a major manufacturing center. It is reinventing itself as a medical and BioMed hub. Home prices in Cleveland have been trending up 8.6% year-over-year.
As per the data from the real estate company called Neigborhoodscout.com, single-family detached homes are the single most common housing type in Cleveland, accounting for 46.56% of the city's housing units. Other types of housing that are prevalent in Cleveland include duplexes, homes converted to apartments or other small apartment buildings ( 26.01%), large apartment complexes or high-rise apartments ( 20.51%), and a few row houses and other attached homes ( 6.23%).
Just four miles from Downtown Cleveland, the University Circle has long been a diverse and appealing mix of single-family homes and apartments. This area of the city has the flavor of a quaint college campus. Given that area amenities are within walking distance, there is a lot of foot and bike traffic, which lends to its charm. The area is one of the largest employment centers in the entire state. People in Cleveland primarily live in small (one, two, or no-bedroom) single-family detached homes.
Here are the top reasons to invest in Cleveland real estate.
- Top 10 Job Market for New College Graduates (CNN)
- Presence by 70% of Fortune 500 comp.
- More than 400 bioscience companies.
- Two new Amazon distribution centers.
- Over 120,000 healthcare professionals.
- Home to 27 area colleges & universities.
- Home to four professional sports teams.
Positive Demographic Trends
Cleveland’s population is stable at around 400,000 residents. It is doing a decent job of retaining its young people. Why is that something to bring up when discussing the Cleveland housing market? Because it is right next to Detroit, a city that has been shedding people for decades. The Cleveland real estate market is thus bolstered by steady to slow growth, though specific neighborhoods are seeing spikes in their valuations as new employers and attractions move in.
The Bright Future of Good-Paying Research Jobs
Cleveland has invested in healthcare and bio-science business accelerators like Bio-Enterprise and the Global Center for Health Innovation. They expect institutions like this to lead to new healthcare advancements provided first in Cleveland and in the hope that discovered drugs and technology will be manufactured in Cleveland. Investors can find affordable investment properties for development and either sale or rental to people working at these facilities. Cleveland’s Health-Tech Corridor is a prime place for high-tech companies, while the Cleveland real estate market is booming around these businesses.
Downtown Brownfield Re-Development
Cleveland is intentionally redeveloping several brownfield industrial sites to create multi-use properties. For example, the Terminal Tower is being turned into a combination shopping and entertainment district. The Cleveland Gateway project is going to turn 65 acres into a densely populated urban neighborhood, mixing multi-family housing with trails, a marina, and an urban park. If you can’t invest directly in this redevelopment project, note that single-family and multifamily housing stock around the new units will go up in value as new infrastructure is built.
Significant redevelopment is occurring along the thoroughfare running from East 55th Street to East 105th Street. Given that it is right off Interstate 490 and connects with downtown streets like Quincy and Chester Avenue, this is an excellent place to buy a property that is going to go up in value. When you know that better streets and traffic management along with improved public transit will go into an area, it is a safe bet for investing in the Cleveland real estate market.
The nucleus is another downtown redevelopment project that seeks to bring mixed-use real estate to depressed areas. The nucleus is centered around two million square feet of retail, residential, and office space, though there will be around 500 residential units. If you want to invest in the Cleveland real estate market, consider buying and rehabbing housing for those who will work in NuCleus but couldn’t get one of the apartments or condos.
University Circle & The Western Rim
University Circle is one of the hottest neighborhoods in Cleveland. It is seeing a wave of high-end condos and apartments. If you can find single-family rentals or multi-family housing in the vicinity, snap it up. These are among the most desirable properties in the Cleveland housing market. We know that when they were willing to turn a former Children’s Museum into an apartment building.
The Western Rim of Cleveland hasn’t been overlooked in the rush to redevelop downtown and the Biotech corridor. Projects worth an estimated 350 million dollars have been proposed or are actually under construction between West 25th and West 117th streets. A business incubator has been proposed for the Western Rim. The Cleveland housing market on the west side should see significant growth as new businesses pop up here. The luxury rentals built in the Near West Side are probably only the start of this area’s resurgence.
The Redeveloped Lakeshore
Cleveland sits on the southern shore of Lake Erie. Cleveland is redeveloping its long waterfront district. The fifty-year plan has already resulted in mixed-use development between West 3rd and East 18th streets. Redevelopment includes rehabilitating waterfront infrastructure like bridges, canals, and “made land”. Reinvented lakeside trails create desirable areas that will command a premium on the Cleveland real estate market. Euclid has already demonstrated this with their lakefront project and main waterfront park. Newly opened areas like the one created by the demolition of the FirstEnergy coal fire plant are to be seen as opportunities to reinvent the Cleveland real estate market.
A New Lease on Life for Old Buildings
The Cleveland housing market is so hot that they’re turning old commercial buildings into new residential spaces. A classic example of this is the former Huntington Bank Building; it is currently known as the 925 Building. The commercial building will be transformed into a mixed-use building with office space, retail space, a Hilton hotel, and 600 apartments.
Catering to the New Medical Talent
While there are Americans who worship Canada’s single-payer healthcare system, the reality is that millions of Canadians come to the United States each year. Some were denied care by their government, while many simply don’t want to wait months for a procedure, so they choose to pay cash at U.S. hospitals. Cleveland is building medical facilities to cater to these medical tourists. And these doctors, nurses and medical specialists are buying homes close to work, whether it is at the world-renowned Cleveland Clinic or the hospital down the street.
Another variation of this strategy is buying property in the Cleveland housing market that caters to medical school students. Case Western Reserve University and the Cleveland Clinic Lerner College of Medicine see many students from around the world who come to the area for one to five years to attend before leaving to practice elsewhere. (The Lerner College is a five-year tuition-free medical school).
Here are the 10 highest appreciation neighborhoods in Cleveland since 2000 (List by Neigborhoodscout.com).
- Central South
- Central Southwest
- Central East
- Central
- Downtown South
- Ohio City South
- Clark Fulton North
- Ohio City
- Tremont North
- Tremont
References
Market Data, Trends & Statistics
https://www.zillow.com/home-values/24115/cleveland-oh/
https://www.redfin.com/city/4145/OH/Cleveland/housing-market
https://www.neighborhoodscout.com/oh/cleveland/real-estate
http://www.freddiemac.com/research/indices/house-price-index.page
https://www.realtor.com/realestateandhomes-search/Cleveland_OH/overview
https://www.movoto.com/guide/cleveland-oh/cleveland-real-estate-market-trends
Lerner College
https://atlantisglobal.org/blog/2017/11/21/get-paid-in-medical-school-my-journey-to-the-cleveland-clinic-lerner-college-of-medicine
Brownfields / urban redevelopment
https://www.calthorpe.com/content/cleveland-gateway-redevelopment-plan
The Opportunity Corridor
http://www.freshwatercleveland.com/features/SevenProjects022317.aspx
University Circle
http://www.freshwatercleveland.com/features/SevenProjects022317.aspx
Waterfront
http://planning.city.cleveland.oh.us/lakefront/cpc.html
https://www.cleveland.com/architecture/index.ssf/2017/11/euclid_close_to_building_lakef.html
http://www.news-herald.com/lifestyle/20170602/clevelands-lakefront-parks-are-stable-flourishing
The Western Rim
http://www.crainscleveland.com/article/20170507/news/170509850/clevelands-western-rim-embarks-development-boom
Biomedical hubs and hospitals
http://www.theglobalcenter.com/about-us
https://newsroom.clevelandclinic.org/2018/07/11/luye-medical-collaborates-with-cleveland-clinic-to-pioneer-value-based-healthcare-in-china