An Overview of Cleveland Real Estate Market 2019
If you are looking at buying a house in Cleveland as a potential investment opportunity, you must read till the end. Cleveland is often looked at as a has-been market. However, its turnaround has created a number of opportunities for investors and residents alike. The Cleveland housing market is rebounding. All indicators point to growing income, a solid job market, and increasing home values in Ohio. The Cleveland real estate market prediction is positive; investors and home buyers will reap benefits when considering the city and its suburbs over the next few years.
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. Let us discuss the latest market trends and find out what are the prospects of Cleveland real estate investment in 2019.
Top 10 Job Market for New College Graduates (CNN)
Cleveland Real Estate Market Forecasts 2019 & 2020
In 2018, a forecast for the Cleveland, Ohio housing market suggested that home-price appreciation could begin to slow down, following a year of double-digit gains. In a separate report, Cleveland was singled out as one of the cities where it’s actually cheaper to buy a home than to rent.
Home prices in Cleveland rose steadily and significantly during 2017, and they were expected to continue trending north for the foreseeable future. This is according to a recent forecast for the Cleveland real estate market that stretches into 2019. The median home value in Cleveland is $55,300 on Zillow. Cleveland home values have gone up 7.8% over the past year and Zillow’s Cleveland real estate market prediction is that the prices will rise 2.0% in 2020.
The median list price per square foot in Cleveland is $69, which is lower than the Cleveland-Elyria Metro average of $109. The median price of homes currently listed in Cleveland is $79,900 while the median price of homes that sold is $65,500. The median rent price in Cleveland is $900, which is lower than the Cleveland-Elyria Metro median of $1,100.
According to LittleBigHomes.com, the Cleveland real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Cleveland real estate market trend prediction is 90%. Accordingly, they estimate that the probability for rising home prices in Cleveland is 90% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Cleveland Housing Market Forecast 2019 – 2021
The Cleveland housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Cleveland housing market trend prediction is 83%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Cleveland is 83% 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 Cleveland Real Estate Market Forecast.
Cleveland Real Estate Market Trends
Cleveland real estate market trends indicate an increase of $5,000 (6%) in median home sales and a 3% rise in median rent per month over the past year. The average price per square foot for this same period rose to $78, up from $73. Trulia has 1,029 resale and new homes for sale in Cleveland, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Cleveland for Feb 2 to May 1 was $90,000 based on 498 home sales. Average price per square foot for Cleveland was $78, an increase of 7% compared to the same period last year. The median rent per month for apartments in Cleveland for Apr 7 to May 7 was $925.
Data by Redfin.com shows that the Cleveland housing market is somewhat competitive. Homes in Cleveland receive 1 offers on average and sell in around 50 days. The average sale price of a home in Cleveland was $84.9K last month, up 56.6% since last year. The average sale price per square foot in Cleveland is $55, up 50.0% since last year. Homes typically receive 1 offer. Homes in the Cleveland housing market sell for about 5% below list price and go pending in around 50 days. Hot Homes in Cleveland, OH can sell for around list price and go pending in around 23 days.
Cleveland Housing Market Statistics
- Median Sales Price: $90,000 (Trulia)
- Median Rent Per Month: $925
- Price Per Sqft: $78
- Median Household Income: $26,630
- Home Owners: 46%
- Single Residents: 44%
- Median Age: 37
- College Educated: 16%
- Transportation: 86% people commute by car; public transport is available
There are 6,589 homes for sale in Cleveland, ranging from $300 to $6.4M on Realtor.com. 538 of which were newly listed within the last week. Additionally, there are 958 Cleveland rental properties up to $10,000 per month. In February 2019 the housing market in Cleveland, OH was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.
In February 2019, the median list price of homes in Cleveland, OH was $124.9K, trending up 8.6% year-over-year. The median listing price per square foot was $74. The median sale price was $109.9K. On average, homes in Cleveland, OH sell after 86 days on the market. The trend for median days on market in Cleveland, OH is flat since last month, and flat since last year.
The median list price in Cleveland is $89,000 on Movoto.com. The median list price in Cleveland was less than 1% change from April to May. Cleveland’s home resale inventories is 888, which increased 0 percent since April 2019. The median list price per square foot in Cleveland is $83. April 2019 was $80. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in May.
Cleveland Single Family And Multi-Family Homes
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.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Cleveland is $74,506, which indicates that home prices in Cleveland are below the national average for all cities and towns. 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. Cleveland has a mixture of owner-occupied and renter-occupied housing. Currently, there are 2,035 single family homes for sale in Cleveland, OH on Zillow. These include upcoming potential listings such as properties which are in the stage of Pre-Foreclosure. Additionally, there are 163 single family homes for rent in Cleveland, OH.
Cleveland, OH Foreclosures And Bank Owned Homes
In Cleveland 10.9 homes are foreclosed (per 10,000). This is greater than the Cleveland-Elyria Metro value of 4.3 and also greater than the national value of 1.2, according to Zillow.com. The percent of delinquent mortgages in Cleveland is 2.5%, 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 Cleveland homeowners underwater on their mortgage is 25.9%, which is higher than Cleveland-Elyria Metro at 10.9%.
- Foreclosures in Cleveland = 4,285 (RealtyTrac)
- Homes for Sale in Cleveland = 2,222
- Recently Sold Homes = 6,773
- Median List Price = $99,900 (2% ⇑ vs Mar 2018)
There are currently 4,285 properties in Cleveland, OH that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,222. In April 2019, the number of properties that received a foreclosure filing in Cleveland, OH was 1% higher than the previous month and 51% lower than the same time last year.
Home sales for March 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Cleveland was $0. The median sales price of a foreclosure home in Cleveland was $0, or 0% higher than non-distressed home sales.
Cleveland Home Prices And Real Estate Appreciation
Cleveland’s appreciation rate notably has been below the national average for the last ten years. The average annual home appreciation rate in Cleveland during the period has been just 0.39%, which is lower than 70% of US communities. During the latest twelve months, Cleveland’s real estate appreciation rate, at 6.16%, has been at or slightly above the national average. In the latest quarter, Cleveland’s real estate appreciation rate has been 1.82%, which annualizes to a rate of 7.49%.
The above statistics on real estate appreciation in Cleveland were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Ohio, their data shows that Cleveland’s latest annual real estate appreciation rate is lower than 80% of the other cities and towns in Ohio.
10 Best Neighborhoods In Cleveland For Real Estate Investment
There are 597 schools in Cleveland, OH. There are 238 elementary schools, 154 middle schools, 84 high schools and 121 private & charter schools. There are 105 neighborhoods in Cleveland. Some of the best neighborhoods in or around Cleveland, Ohio are Old Brooklyn, Parma and Euclid.
The Bay Village area is a highly desirable suburb of Cleveland, Ohio. Cleveland Magazine rated it the number one suburb to nest in, citing low crime, increasing home values and great schools. Bay Village retained these positive elements even during the recession.
Tremont has a median listing price of $325,000, making it the most expensive neighborhood. Mount Pleasant is the most affordable neighborhood in Cleveland, with a median listing price of $31,000. Here are the 10 best neighborhoods in Cleveland to invest in real estate because they have the highest real estate appreciation rates (List by Neigborhoodscout.com).
Is Cleveland a Good Place To Invest in Real Estate?
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 2019 forecast for answers on why to put resources into this sizzling market. Home prices in Cleveland have been trending up 8.6% year-over-year. Here are top 10 reasons to invest in the Cleveland real estate in 2019.
1. 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).
2. 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. In fact, Cleveland’s Health-Tech Corridor is a prime place for high tech companies, while the Cleveland real estate market is booming around these businesses.
3. Downtown Brownfield Re-Development
Cleveland is intentionally redeveloping a number of 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.
4. The Opportunity Corridor
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 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.
5. The NuCLEus Project and the Surrounding Area
Nucleus is another downtown redevelopment project that seeks to bring mixed use real estate to depressed areas. 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.
6. University Circle
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.
7. The Western Rim
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 is probably only the start of this area’s resurgence.
8. 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.
9. 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 space. 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.
10. 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.
Cleveland Real Estate Investment
Maybe you have done a bit of real estate investing in Cleveland, OH 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. If you are a home buyer or real estate investor, Cleveland real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in New Cleveland 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.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population 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 Cleveland, OH. 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.
Cleveland Investment Properties For Sale ⇐ Click Here
Buying an investment property is different from buying an owner-occupied home. Our Cleveland investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Cleveland.
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Other Best Places To Invest In Real Estate
Another market that we suggest is the housing market in Iowa City. While the Iowa City real estate investment market is not overheated or exciting, it offers strong fundamentals like a large rental population relatively immune to rental rates. It will see slow, steady growth in property values and rental rates for years to come.
Investors in hot real estate markets have to wonder if the appreciation and rental increases will stop when a wave of new inventory hits the market. The Iowa City housing market does not face this problem. Instead, demand for existing Iowa City housing market remains steady while the supply is constrained by a lack of construction. Replacing homes that flooded or burned down does not bring new inventory to a slowly growing market.
Another market that we suggest is the housing market in New Orleans, LA. New Orleans is bit pricey for an average investor to make good returns and it involves a strategic panning. However, it offers a good combination of short-term renters like students and tourists and a permanent population of renters who cannot afford to buy homes. Geography and market forces limit housing supply, keeping home values and rents stable.
Airbnb was legalized in the New Orleans real estate market in 2016 and it’s been growing quite well since then. Therefore, you can choose to invest in Airbnb rentals in New Orleans and earn a steady rental income. The upfront cost of running an Airbnb business is not much as you do not need to own a rental property. However, if you want, you can buy a rental property in New Orleans for Airbnb investment. Unlike big cities like New York, the regulations on short term rentals in New Orleans are not very tight, though there is some criticism from opponents about the leniency of these laws.
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*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.
Biomedical hubs and hospitals
Brownfields / urban redevelopment
The Opportunity Corridor
The Western Rim
Market Data, Trends & Statistics