We will discuss the latest Cincinnati real estate market trends & news and find out how they can affect the investors and homebuyers in the second half of 2022. Cincinnati is a sizzling hot housing market due to low housing inventory and relatively higher demand. Cincinnati, like many 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.
2022 started strong with an increase in home-buying activity in the Greater Cincinnati housing market. The median sold price in Cincinnati continues to rise. Although interest rates are rising the scarcity of inventory continues to benefit sellers in this strong market. The low unemployment rate, the influx of high-paying jobs, and very affordable housing make Greater Cincinnati a great place for people to live and work.
The inventory of homes for sale continued its year-over-year declining trend and that shows that there are plenty of buyers in the market ready to scoop up properties. Annual real estate appreciation rates in Cincinnati have been quite strong for the past few years. NeighborhoodScout's data indicates that over the last decade, the cumulative appreciation rate has been 69.55 percent, placing it in the top 40% nationally. This equates to an annual average appreciation rate of 5.42 percent for Cincinnati homes.
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 savvy real estate investors. Cincinnati has all the amenities of the urban lifestyle; access to nightlife, shopping, great restaurants, and culture, along with good schools and some beautiful green spaces.
Cincinnati Housing Market Prices & Forecasts 2021-2022
We shall now discuss some of the most recent Cincinnati real estate trends and compare them with the past year. We shall mainly discuss median home prices, inventory, and growth which will help you understand the way the local real estate market moves in this region. As mentioned above, with supply and demand continuing to favor sellers, prices have been rising steadily in the entire Cincinnati metro area housing market.
2021 ended with the housing market remaining strong and yet affordable for homebuyers and investors. The entire Greater Cincinnati region continues to experience business growth and an influx of young and established families moving in. The similar trend continues in 2022. The number of new listings climbed by 3.6% from April to May 2022, while the average number of days on the market increased to 3 days.
While the number of current listings is continuing to climb, the median sales price increased sharply by 7.1% from April to May of 2022. The average amount paid for a sold listing is 103.2% of the original asking price. “Now is the moment if selling your house is in your future. Interest rates are increasing, according to REALTOR® Alliance of Greater Cincinnati President Kay Edwards.
Below is the latest monthly report of the Cincinnati Housing Market. The source of this report is – “The Cincinnati Area Board of REALTORS®.” The report compares key housing metrics of the “Greater Cincinnati Area” from May 2022 with May 2021.
- The total dollar volume of all sales (single-family plus condos) was $779M, up 12.5%.
- Total units sold in May were up 2.1% from the previous year.
- Total units sold (YTD) were down 1.7% from the previous year.
- The median home price has reached $265,000, up 11.6%.
- The median price (YTD) is $245K, up 10.0%.
- The active inventory was up 28.4% to 1690 units for sale.
- New listings were also up 1.8% to 2921 units.
Cincinnati Real Estate Market Forecast 2022-2023
What are the Cincinnati real estate market predictions for 2022 and 2023? We get to find that on Zillow, the typical home value in Cincinnati is $259,655. Let us look at the price trends recorded by Zillow over the past few years. Since the last decade (July 2012), the typical home prices in Cincinnati have appreciated by nearly 91% (Zillow Home Value Index). The prices rose by 16% over the last 12 months alone.
Cincinnati is a hot seller’s real estate market as there exists a limited supply of homes, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. In other words, based on the month's supply of inventory, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. There are fewer homes for sale than there are active buyers in the marketplace.
- The typical home value of homes in Cincinnati Metro is $259,655, up 16% over the past year.
- The Cincinnati MSA housing market forecast ending with May 2033 is positive.
- Zillow predicts they will rise 9.5% by May of next year.
- If this forecast is correct, Cincinnati home prices will be higher in the 3rd Quarter of 2023 than they were in the 3rd Quarter of 2022.
- Cincinnati (City) home values have gone up 16% over the past year and will continue to rise in the next twelve months.
- Hamilton County home values have increased 14% over the past year ($240,160 as of May 31, 2022).
Here is the visual representation of historical Cincinnati home prices for the last decade.
The question is whether it is going to remain a sizzling real estate market. Cincinnati has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. Like other metro areas of Ohio, this area is also much skewed to sellers due to a very low level of inventory that can’t meet the demand of the rising population.
The Greater Cincinnati area is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Cincinnati can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. Therefore, in the long term, the Cincinnati real estate market remains strong and skewed to sellers, due to persistent imbalance in supply and demand, and a growing population.
Cincinnati Real Estate Investment Overview
You'd probably want to know why we’re recommending Cincinnati as a good place to invest in real estate. Should you consider Cincinnati real estate investment? Many real estate investors have asked themselves if buying a property in Cincinnati is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the real estate investors and buyers in 2022 & 2023.
Let’s talk a bit about Cincinnati and the surrounding metro area before we discuss what lies ahead for investors and homebuyers. 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 cost of living in Cincinnati, OH is 8 percent higher than the national average and 34.59% lower than in New York. The average salary in Cincinnati is $65,000.
Housing is more expensive than in Memphis but still affordable, with the typical house valued at $259,655, 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 ex-pat or a US citizen, 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 of about $128 for a 915-square-foot apartment. As per Areavibes.com's statistics, these are some of the relative figures for 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.
- Cincinnati housing is 33% lower than the national average.
- Cincinnati real estate prices are 9% lower than the Ohio average.
- Rental prices in Cincinnati are 11% lower than the Ohio average
Cincinnati has a mixture of owner-occupied and renter-occupied housing units. According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Cincinnati. Other types of housing that are prevalent in Cincinnati include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 38% of Cincinnati’s housing units.
If you are looking to make a profit, you don’t want to buy the most expensive property on the Cincinnati real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Cincinnati that you might move into or sell at retirement in the future.
Either way, knowing your profit potential and purpose is the first thing to consider. Let’s take a look at the number of positive things going on in the Cincinnati real estate market which can help investors who are keen to buy an investment property in this city. We’ll address the biggest factor pulling people to the Cincinnati housing market next.
Cincinnati Real Estate Forecast Shows Long-Term Growth
The Cincinnati forecast shows that the housing market is truly expanding for many reasons. The Dayton and Cincinnati metro areas are expanding along I-75 and are 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.
Cincinnati's Low Cost of Living & Housing Affordability
Cincinnati was ranked the fastest-growing power in the Midwest in terms of percentages. It is the seventh-largest economy in the Midwest and the 28th largest in the United States. The median age, here, is a positive sign. The median age for residents is 32, while the average age of people living in Ohio is 39. People are coming here and staying here, raising their children here. That demographic momentum will keep Cincinnati going strong for years to come.
Cincinnati was recently ranked the most affordable place for renters to live alone. The median home price in Cincinnati is $165,613. 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 savvy real estate investors.
Cincinnati has all the amenities of the urban lifestyle; access to nightlife, shopping, great restaurants, and culture, along with good schools and some beautiful green spaces. One 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.
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. 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 come 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 a Monthly ticket for public transport in Cincinnati, Ohio comes around $93.
Disclaimer: Covid-19 may have influenced prices in ways not yet reported. Please keep in mind that the data on this page may not accurately reflect current reality.
Cincinnati's Housing Market & Economy is 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.
The strong job market attracts millennials. The current unemployment in Cincinnati is around 5.3%. 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 like Kroger & Procter & Gamble. 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.
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.
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. The average rent for an apartment in Cincinnati is $1,080, a 6% increase compared to the previous year, according to RENTCafe.
Despite these increases, rents are still relatively affordable in Cincinnati, with about 55% of the rental housing units going for $1,000 per month or less, and 30% of the units going for $1,001-$1,500. 54% of the households in Cincinnati, OH are renter-occupied while 45% are owner-occupied. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.
According to Zumper, the average rent for a 1-bedroom apartment in Cincinnati, OH is currently $950. This is a 15% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Cincinnati decreased by -3% to $800. The average rent for a 1-bedroom apartment decreased by -5% to $950, and the average rent for a 2-bedroom apartment remained flat.
- The average rent for a 2-bedroom apartment in Cincinnati, OH is currently $1,300. This is a 29% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in Cincinnati, OH is currently $1,495. This is a 5% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in Cincinnati, OH is currently $1,637. This is a 6% increase compared to the previous year.
Cincinnati's Massive Student Population That Rents
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 host 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.
The Military Market Which Boosts Cincinnati Rentals
Wright-Patterson Air Force Base is about an hour's drive from Cincinnati. 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.
Cincinnati Real Estate Market Is Landlord Friendly
Ohio is more landlord-friendly than several 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 the 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.
Cincinnati Apartments For Rent – Riverfront Redevelopment
Cincinnati has many sports venues downtown, but the true heart of the city is the downtown riverfront. Signs of the 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 redevelopment.
A 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 the 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 a 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.
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 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.
Cincinnati Investment Properties
The Cincinnati real estate market is on the upswing and looking strong for the foreseeable future. It provides many opportunities for investors, regardless of the market you want to invest in. 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 that can yield the greatest ROI. Good cash flow from Cincinnati investment properties 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 Cincinnati real estate investment opportunity would be key to your success.
The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Cincinnati investment property and you should be able to get a good return on your investment over the long term.
A cheaper neighborhood in Cincinnati might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplexes and triplexes in Class A & B neighborhoods. The inventory is low, but opportunities are there.
There are 109 neighborhoods in Cincinnati. There are 125 elementary schools, 74 middle schools, 53 high schools, and 97 private & charter schools. Some of the best neighborhoods in Cincinnati, Ohio are Hyde Park, Mulberry St, Barrow Avenue, Woodburn Avenue, Winchell Avenue, Oakley, and West Price Hill.
The affordable neighborhoods for apartments in Cincinnati are Sayler Park, where the average rent goes for $617/month, Queensgate, where renters pay $643/mo on average, and West End Cincinnati, where the average rent goes for $643/mo. The most expensive neighborhoods for apartments in Cincinnati are Mount Adams ($1,648), Over – The Rhine ($1,648), and Pendleton ($1,648).
Even as Cincinnati's home prices have reached new heights, they are still near to the national average, and the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. Millennial homebuyers can’t outbid real estate investors and hence end up renting. As with any real estate purchase, act wisely. Evaluate the specifics of the Cincinnati housing market at the time you intend to purchase.
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 areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Cincinnati.
Consult with one of the investment counselors who can help build you a custom portfolio of Cincinnati turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Cincinnati.
Not just limited to Cincinnati or Ohio but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Cincinnati turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
There are many other markets in the state of Ohio for real estate investing. Columbus is one of them. The Columbus real estate market is a bright spot in a declining region. It mixes smart redevelopment, quality of life, and growth to create a stable, slow-growing market that will be thriving well into the foreseeable future. If you’re looking to buy Columbus investment properties, it makes sense to do so when inventory levels are relatively high, like in the current phase of the pandemic. The surplus of available opportunities can lead to softer negotiations with sellers. Columbus has a lower cost of living than the national average.
Cleveland is another good market to invest in real estate. Cleveland is a notable exception to the decline of the Rust Belt cities. It has managed to reinvent itself, shifting from classic manufacturing to biotech and medicine. In the process, it has maintained its population and has strong potential for growth both economically and demographically.
Similarly, you can also consider Akron for real estate investing. It also presents a great opportunity for real estate investors. 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. If you include the suburbs and small towns that surround it, and the Akron housing market contains roughly 700,000 people.
Dayton is the sixth-largest city in Ohio. The city is home to roughly 140,000 people. The metro Dayton Ohio housing market includes around 800,000 people. Home values are predicted to go up steadily in the next five to six years making Dayton a great place for real estate investing. The Dayton Ohio real estate market is one of the best deals in the Midwest. It balances affordable properties with strong future growth, a large rental market and stable property values, low carrying costs, and decent ROI.
Let us know which real estate markets you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
REFERENCES
Latest Market Data, Trends, and Statistics
https://www.cabr.org/category/homesales
https://www.zillow.com/Cincinnati-oh/home-values
https://www.neighborhoodscout.com/oh/cincinnati/real-estate
https://www.littlebighomes.com/real-estate-cincinnati.html
https://www.realtor.com/realestateandhomes-search/Cincinnati_OH/overview
Colleges
https://www.collegesimply.com/colleges-near/ohio/cincinnati/
Employment figures for the 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
Landlord Friendly/Rental Market
https://www.zumper.com/rent-research/cincinnati-oh
https://www.rentcafe.com/average-rent-market-trends/us/oh/cincinnati
https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
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/
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
