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How is The Akron Real Estate Market Market in 2019?
If someone mentions Ohio real estate market, the first thing most people think of is Columbus, the largest city in the state. However, it is smaller towns like Akron that hold more potential. Let’s learn more about Akron before explaining why Akron real estate market is a better choice for investors as well as home buyers.
Akron has been known as the “Rubber Capital of the World” for more than a century. It is home to around 200,000 people. However, the Akron real estate market is much larger than this. Include the suburbs and small towns that surround it, and the Akron housing market contains roughly 700,000 people.
However, being a big metro area is not reason enough to consider Akron real estate investment. After all, someone could say the same thing about Detroit. Is Akron still one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Akron housing market trends to come to a conclusion.
The Akron real estate market is poised for a growth in 2020 & upcoming years. More than 400 polymer companies are headquartered in the greater Akron Area. Akron’s economy continues to expand with new constructions and development taking place at a rapid pace.
Akron Real Estate Market Market Forecasts 2019 & 2020
The real estate data from Zillow shows that the median home value in Akron is $70,200. Akron home values have gone up 9.9% over the past year and their Akron real estate market prediction is that the prices will rise 4.3% within the next year. The median list price per square foot in Akron is $65, which is lower than the Akron Metro average of $107.
The median price of homes currently listed in Akron is $75,900 while the median price of homes that sold is $69,900. The median rent price in Akron is $750, which is lower than the Akron Metro median of $850.
Here is the Akron, OH real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 4.3% till Aug 2020.
Akron Housing Market Forecast 2019 – 2021
The Akron housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Akron housing market trend prediction is 77%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Akron, OH is 77% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Akron, Ohio Real Estate Market Forecast.
Akron Real Estate Market Trends
We shall discuss some of the most recent housing trends in the Akron area. Recently, the central Ohio region was named the nation’s hottest real estate market by Realtor.com. The rankings are based on the number of days homes are on the market and the frequency that listings are viewed in each market.
Columbus topped the overall list, which also included Akron real estate market at 16th position. Currently, Trulia has 1,415 resale and new homes for sale in Akron, OH, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sale price in Akron, OH is $104,000. Homes are selling for about $83/sqft.
In the past month, 4 homes have been sold in Akron, OH, as reported by Redfin.com. In addition to houses in Akron, there were also 0 condos, 0 townhouses, and 2 multi-family units for sale in Akron last month. As per their real estate data, the Akron housing market is somewhat competitive.
The average sale price of a home in Akron was $375K last month, up 57.0% since last year. The average sale price per square foot in Akron is $149, up 35.9% since last year. Some homes get multiple offers.
Properties for sale in the Akron housing market sell for about 2% above list price and go pending in around 14 days. If it is a hot home, it can sell for about 7% above list price and go pending in around 8 days.
Akron Housing Market Trends in Sep 2019: Source Redfin.com |
|
| Median List Price | $247,000 |
| Avg. Sale / List | 98.70% |
| Median List $/Sq Ft | $134 |
| Avg. Number of Offers | – |
| Median Sale Price | $375,000 |
| Avg. Down Payment | – |
| Median Sale $/Sq Ft | $149 |
| Number of Homes Sold | 4 |
There are 1,522 homes for sale in Akron, OH on Realtor.com. The Akron home prices range from $1.5K to $7M. 124 properties were newly listed within the last week. Additionally, there are 219 Akron rentals for sale, and their rent price ranges from $25 to $4K per month.
According to their statistics, in August 2019, the Akron housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90%. In Akron sellers have held good leverage in these negotiations. On an average, they could sold homes for 97.64% of the asking price in the past two years. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
In August 2019, the median list price of homes in Akron, OH was $106K, trending up 11.6% year-over-year. The median listing price per square foot was $76. The median sale price was $112.4K. On average, homes in Akron, OH sell after 59 days on the market. The trend for median days on market in Akron, OH has gone up since last month, and slightly up since last year.
The median list price in Akron, OH is $84,900 on Movoto.com. The median list price in Akron was less than 1% change from September to October. Akron’s home resale inventories is 831, which increased 2 percent since September 2019. The median list price per square foot in Akron is $72. September 2019 was $71. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.
Akron, OH Single Family And Multi-Family Homes
Following the real estate market decline in 2007 in the U.S., single family rental homes 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 properties 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.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
As per the real estate company called Neigborhoodscout.com, the median house price in Akron, OH is just $81,803, which indicates that home prices in Akron are well below the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Akron, accounting for 66.21% of the city’s housing units. Three and four bedroom single-family detached homes are the most common housing units in Akron. In fact, the vast majority of the housing stock in the city of Akron consists of previously owned single-family dwellings.
Other types of housing that are prevalent in Akron include large apartment complexes, duplexes, and a few row houses and other attached homes. The city has a mixture of owners and renters, with 49.61% owning and 50.39% renting.
Currently, there are 791 single family homes for sale in Akron, OH on Zillow. Additionally, there are 160 single family homes for rent in Akron, OH. Under potential listings, there are about 238 Foreclosed and 165 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Akron, OH Foreclosures And Bank Owned Homes Statistics 2019
The price of both single-family homes and condos have held steady over the past 12 months. Akron, like much of Ohio, was hit hard by the so-called foreclosure crisis of the 1990s and early 2000s. As per the Akron foreclosure data by Zillow, in Akron 7.5 homes are foreclosed (per 10,000).
This is greater than the Akron Metro value of 4.6 and also greater than the national value of 1.2. The percent of delinquent mortgages in Akron is 1.6%, which is higher than the national value of 1.1%.
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 Akron homeowners underwater on their mortgage is 20.6%, which is higher than Akron Metro at 9.5%.
| Foreclosures in Akron | 603 |
| Homes for Sale in Akron | 887 (RealtyTrac) |
| Recently Sold | 3,616 |
| Median List Price | $115,000 (5% ⇑ vs Jul 2018) |
There are currently 603 properties in Akron, OH that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 887. In August 2019, the number of properties that received a foreclosure filing in Akron, OH was 6% lower than the previous month and 27% lower than the same time last year.
Best Neighborhoods to Invest in Akron Rental Real Estate
If you are looking to invest in the Akron rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Akron rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Akron real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Akron rental property should be low. The neighborhoods in Akron must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 25 elementary schools, 25 middle schools, 23 high schools and 19 private & charter schools in Akron. There are 28 neighborhoods in Akron, Ohio.
Some of the best neighborhoods in or around Akron, Ohio are Ellet, Northwest Akron, West Akron, Firestone Park, Goodyear Heights and Sky Line Terrace.
Montrose – Ghent has a median listing price of $399.5K, making it the most expensive neighborhood. East Akron is the most affordable neighborhood in Akron, with a median listing price of $35.8K.
Here are the best neighborhoods to invest in Akron rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
1 |
Brown St / Crouse St |
2 |
South Akron |
3 |
City Center |
4 |
West Akron |
5 |
Cross St / Grant St |
6 |
Portage Lakes |
7 |
Memorial Pky / Cuyahoga St |
8 |
N Revere Rd / Woodsmill Rd |
9 |
Copley Junction |
10 |
U of Akron Main Campus / E Market St |
Is Akron a Good Place to Invest in Real Estate?
Now that you know where Akron is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Akron rental real estate?
Many real estate investors have asked themselves if buying a rental property in Akron is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Akron housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Akron but we have collected ten evidence based positive things for those who are keen to invest in the Akron rental properties.
Investing in Akron rental properties will fetch you good returns in the long term as the home prices in Akron have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Akron real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Akron real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Affordable Akron Single Family Market
The cost of living in Akron is considerably lower than many other urban markets. This is reflected in the price of housing. The Akron housing market is incredibly affordable for investors.
The median home value is around eighty thousand dollars, nearly a third the price of the average home in the U.S. In Akron itself, the median home price is less than sixty thousand dollars.
Hudson is a notable exception. The average price of homes in that city hover around 300,000 dollars. This is the most expensive area between Akron and Cleveland.
Yet the average home price here is less than 150 percent of the median home price in the country. In short, even expensive homes in the Akron real estate market are affordable by national standards.
2. The Accessible Akron Multi-Family Market
The Akron real estate market is notable for having an affordable multi-family market. In the Akron housing market, townhomes and condos start at 30K for a one bedroom and hover around 30K per bedroom. This is why a five bedroom townhome costs around 150,000 dollars.
A duplex with two four bedroom units could be purchased for around 100-300,000 dollars, depending on the neighborhood. Five and six bedroom properties can be found in the multi-unit market, too.
Large duplexes and triplexes with this many bedrooms are perfect for families with many children as well as inter-generational households.
3. The Diversified Economy
Akron may have a reputation for being in the Rust Belt, but it has diversified its economy from relying mostly on manufacturing. For example, it is a major medical services hub. Summa Health System, the Cleveland Clinic and the Akron Children’s Hospital employ thousands apiece.
Akron is also the regional services hub. This is why it has a large K-12 school district and a university. There are manufacturers like Goodyear and Signet Jewelers in the area, and there are more modern telecom companies.
Akron’s diversified economy provides a number of decent paying jobs that attract people from the surrounding rural areas.
4. The Large Student Market
The University of Akron is so large that it employs more than two thousand people by itself. The college is home to 20,000 students. You could earn a significant return on the investment in an Akron real estate investment property right by the campus.
Students value proximity to classes over rental rates, and the demand for property is barely affected by the city’s economy.
5. The Opportunity for a Bargain
The Akron real estate market was at the bottom of a top 20 list of cities ready for a housing price decline after years of appreciation. Factors included 2.3 percent of homes being unoccupied, 7 percent of rentals being empty and roughly a fifth of homes being underwater.
A home being underwater can make it difficult to sell, but it doesn’t matter to those remaining in the house with plans to stay for a lifetime.
However, these stats do raise the possibility of finding a great deal on an Akron real estate investment property. You could buy vacant homes and rental properties by distressed sellers, fix it up and rent it out.
6. The Low-Income Market Opportunities
One reason why the Akron real estate market is so affordable is that they’ve suffered a long slump. This has pulled down property prices so much that many low-income home owners who want to move cannot. After all, they can’t afford to sell the house for less than they owe on it.
There are others who can’t find properties in the more affordable parts of the Akron housing market because others are locked into their home thanks to negative equity. This can create opportunities for investors.
For example, you might secure an Akron real estate investment property by buying it from a motivated seller willing to just close for a little less than they owe. Or they’ll sell the property to you on the promise that they can rent for a while.
Once they leave, you can fix and flip or fix and rent out. More importantly, this strategy is an option in areas seeing significant redevelopment where housing prices will go up in the next few years though the retiree needs to leave now.
Most of these homes are in the 30,000 to 50,000 dollar range. And unlike other markets where redevelopment may get you protested, locals will appreciate the repair of neglected, vacant or abandoned properties. A side benefit of the Akron area is that it is generally landlord friendly.
7. The Opportunity for Redevelopment
We’ve mentioned the relatively high vacancy rate in the Akron real estate market. Renovation opportunities also exist in neighborhoods filled with 1100 square foot three bed two bath homes more than fifty years old that fall short of modern expectations.
Akron leaders are aware of this, too. They implemented a fifteen year 100 percent residential property tax abatement program. Buy an abandoned property, tear it down and build something new, and you’ll be free of most or all property taxes for years.
8. The Mismatch between Supply and Demand
We’ve touched on the oversupply of post-war properties that are at best starter homes for Millennials versus the larger homes with multiple bathrooms and full amenities. This has resulted in bidding wars on the few larger move-in ready homes in the Akron housing market.
It resulted in the city incentivizing private investors tearing down vacant or merely rundown buildings in the Akron real estate market. It has also caused bidding wars among the larger homes in upscale neighborhoods that suit modern tastes.
For example, the homes that sell the fastest are in the 400K price range. There isn’t enough demand for many of these homes to be built, so supply is tight.
9. The Relative Bargain on Taxes
We’ve mentioned the possible property tax abatement in the Akron real estate market. However, not all projects will quality. Yet the Akron housing market remains a relative bargain in terms of taxes. The nearly six percent sales tax rate is in line with the national average.
For many property owners, incorporation could exempt you from the state income tax. Overall taxes on individuals are twenty second out of the fifty states. That’s a deal compared to Pennsylvania or Illinois.
Pennsylvania has high business taxes. Illinois is moving toward having the highest property tax rate in the country. Voters shot down a statewide property tax to help pay Chicago pensions, but taxes there are certain to rise to pay their massive debt to unions.
10. The Strong Overall Akron Real Estate Appreciation
Our discussion of the Akron housing market has thus far focused on homes around the university and the cheaper neighborhoods. However, some of the greatest appreciation in the Akron real estate market is found in the suburbs.
For example, the value of homes in the suburban Akron area has risen by nine percent in the last year. This is partially due to bidding wars, but it is also due to the shift of people from downtown to more livable suburbs overall.
Akron Real Estate Investment
Maybe you have done a bit of real estate investing in Akron, Ohio but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Akron real estate investment opportunity would be a key to your success. If you invest wisely in Akron rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Akron rental properties are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Akron you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Akron, Ohio. The Akron area has hit its low and is starting to appreciate. This is a safer choice than buying in depressed areas that may never recover. It also presents a great opportunity for real estate investors.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Akron real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Irvine, CA. The Irvine real estate market seems expensive, but that is in line with local real estate trends. The area remains stable and strong, though recent legislative trends along with ongoing regulations make this a great time to buy.
The Irvine real estate market hasn’t declined in value. However, property valuations are expected to rise one and two percent in 2020. This means that some properties are having their prices cut as people try to sell and demand levels off for the foreseeable future due to flattening demand.
Rental rates in the Irvine area are expected to go up 4 percent in 2020 because so many do want to live here but can’t afford to buy unless property prices drop significantly.
Another fairly good market to choose for real estate investment is Boulder, CO. The Boulder metro area is becoming a high tech hub, driving up rental rates and property values. Others are lured here by the promise of high paying jobs or attending school somewhere they can intern at Big Tech firms without paying a fortune.
Boulder’s economy is stabilized by the presence of government research institutes and the proximity to Denver’s buzzing economy. The median rent in the Boulder housing market is $2500 per month. Even in the older downtown area, rents hover around 2300 dollars a month, and that figure is predominantly one and two bedroom apartments. Rents are inflated by the massive number of students in the Boulder real estate market.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*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 through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
About Akron
https://en.wikipedia.org/wiki/Akron,_Ohio
Opportunity for a bargain
https://www.crainscleveland.com/scott-suttell-blog/are-housing-prices-40-big-cities-including-cleveland-and-akron-ready-fall
Diversified economy
https://en.wikipedia.org/wiki/Akron,_Ohio#Top_employers
The student market
https://en.wikipedia.org/wiki/Akron,_Ohio#Top_employers
https://en.wikipedia.org/wiki/University_of_Akron
The City’s redevelopment strategy
https://www.clevescene.com/scene-and-heard/archives/2018/08/14/in-the-rust-belt-a-40000-house-isnt-really-a-40000-house
Supply and demand
https://www.wksu.org/post/akrons-hot-real-estate-market-could-be-forcing-more-bidding-wars#stream/0
https://www.ohio.com/news/20190411/columbus-is-nations-hottest-real-estate-market-akron-ranked-16th-canton-is-19th
Affordability
https://www.neighborhoodscout.com/oh/akron/real-estate
https://www.cbsnews.com/media/10-cheapest-us-cities-for-buying-a-home
Low income opportunities
https://www.planetizen.com/news/2018/04/98435-which-states-are-most-renter-or-landlord-friendly
Suburban appreciation
https://www.crainscleveland.com/scott-suttell-blog/want-buy-home-suburbs-cleveland-and-akron-are-great-places-do-it
Affordable multifamily market
https://www.househunt.com/home-prices/OH/Akron/
Bargain on taxes
https://taxfoundation.org/state/ohio/
https://taxfoundation.org/state/pennsylvania/
https://www.chicagobusiness.com/residential-real-estate/suburban-voters-issue-springfield-warning-about-statewide-property-tax
Market Prices, Trends & Forecasts
https://www.zillow.com/akron-oh/home-values
https://www.realtor.com/realestateandhomes-search/Akron_OH/overview
https://www.movoto.com/akron-oh/market-trends
https://www.realtytrac.com/statsandtrends/oh/summit-county/akron
