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. In this blog post, we will delve into the current trends and forecasts of the Cleveland housing market, examining factors such as house prices, competitiveness, migration patterns, and even climate risks.
Current Cleveland Housing Market Trends
According to data by Redfin, the Cleveland housing market proves to be somewhat competitive, with homes receiving an average of 3 offers and selling within approximately 25 days. In the last month, the median sale price of homes in Cleveland stood at $110K, reflecting a 4.3% decrease from the previous year. The median sale price per square foot is $82, marking a 1.2% increase since last year.
Wondering how Cleveland stacks up against the national housing market? The median sale price in Cleveland is 73% lower than the national average, making it an attractive option for those seeking affordability. Moreover, the overall cost of living in Cleveland is 8% lower than the national average.
Median Listing Home Price Stability
According to realtor.com, in October 2023, the median listing home price in Cleveland, OH stood at $120K, demonstrating a steady trajectory with no significant year-over-year fluctuations. This stability is a promising sign for both buyers and sellers, creating an environment of predictability in the real estate market.
Per Square Foot Analysis
Examining the median listing home price per square foot provides valuable insights into the cost efficiency of properties in Cleveland. As of October 2023, the figure is $81, offering potential homebuyers and investors a metric to gauge the relative value of properties based on their size.
Sale-to-List Price Ratio
One key indicator of market health is the sale-to-list price ratio. In October 2023, homes in Cleveland, OH, were sold at an impressive 100% of the asking price on average. This reflects a balanced dynamic between buyers and sellers, highlighting a fair and competitive real estate landscape.
Market Balance: Buyer and Seller Equilibrium
Cleveland, OH, stands as a balanced market in October 2023, indicating equilibrium in the supply and demand for homes. This equilibrium signifies a favorable condition for both buyers and sellers, where neither party holds a significant advantage.
Median Days on Market
Time is of the essence in the real estate market, and in Cleveland, OH, homes typically spend 43 days on the market before being sold. Analyzing the trend over the past year, there has been a slight increase since last month, but a modest decrease compared to the same period last year. This data suggests a dynamic market with fluctuations that warrant attention from both buyers and sellers.
Cleveland Rental Market Trends
2023 Average Rent Prices in Cleveland, OH
1 Bedroom Apartments
As of November 13, 2023, the average rent for a 1-bedroom apartment in Cleveland, OH is $1,350. The cost varies based on factors such as unit size, bathroom count, and location.
2 Bedroom Apartments
Based on our data, the average rent for a 2-bedroom apartment in Cleveland, OH is $1,045. Prices vary based on unit size, bathroom count, and location within Cleveland, OH.
3 Bedroom Apartments
In November 2023, the average rent price for a 3-bedroom apartment in Cleveland, OH is $1,200 per month. Rent prices vary based on unit size, bathroom count, and location within Cleveland, OH.
Affordable and Expensive Neighborhoods
Discover the most affordable and expensive neighborhoods in Cleveland:
- Affordable: Glenville ($600), Old Brooklyn ($799), Buckeye – Shaker ($800)
- Expensive: Ohio City ($1,625), Tremont ($1,300), Edgewater ($1,200)
$1,625 is 20% higher than the city median, while $1,300 is 4% lower than the city median.
Cleveland Housing Market Forecast 2023-2024
What are the Cleveland real estate market predictions? Cleveland has a record of being one of the best long-term real estate investments in the U.S. The Cleveland metropolitan area, or Greater Cleveland as it is more commonly known, is the metropolitan area surrounding the city of Cleveland in Northeast Ohio, United States.
Delving into the intricacies of the Cleveland-Elyria housing market, Zillow provides a comprehensive snapshot of the region's real estate dynamics. As of October 31, 2023, the average home value in Cleveland-Elyria stands at a robust $215,810, representing a noteworthy 5.1% increase over the past year. This surge underscores the market's resilience and positive growth trend.
Key Metrics and Insights
Several key metrics shed light on the current state of the Cleveland-Elyria housing market. Homes in this region typically go pending in an expedited 7 days, reflecting a high demand and swift transaction process. The median sale to list ratio, as of September 30, 2023, is a solid 1.000, indicating a balanced market where homes are generally sold at their listed prices.
Examining the sales landscape, 48.5% of sales in the same period were over the list price, indicating a competitive environment where buyers are willing to pay more to secure a property. Conversely, 38.0% of sales were under the list price, showcasing a balanced mix of competitive and negotiable transactions. These figures provide insights into the flexibility within the market.
Market Forecast for the Coming Year
Zillow's 1-year market forecast for Cleveland-Elyria, as of October 31, 2023, predicts a 0.5% increase. While forecasts are subject to various factors, this modest yet positive projection suggests a continued upward trajectory for the housing market in the coming year.
Can the Market Crash?
The possibility of a market crash is a concern for many, especially considering historical precedents. However, based on the current data and Zillow's forecast, there is no immediate indication of an impending crash in the Cleveland-Elyria housing market. The steady increase in home values, balanced sales ratios, and a relatively short time to pending transactions all contribute to a stable and resilient market.
It's important to note that real estate markets are influenced by a multitude of factors, including economic conditions, interest rates, and local developments. While a crash cannot be ruled out entirely, the current data suggests a healthy and thriving Cleveland-Elyria housing market.
As always, individuals involved in the real estate market, whether buyers, sellers, or investors, should stay informed about evolving trends and consult with professionals to make well-informed decisions in this dynamic environment.
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).
Summary
If you are a home buyer or real estate investor, Cleveland real estate investment has a track record of generating one of the best long-term returns in the U.S. through the last ten years. 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.
There are over 590 schools in Cleveland, OH. There are 238 elementary schools, 154 middle schools, 84 high schools, and 121 private & charter schools. There are over 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 $320K, making it the most expensive neighborhood. Mount Pleasant is the most affordable neighborhood, with a median listing price of $60K.
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
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. Buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities. We can help you succeed by minimizing risk and maximizing profitability. We recommend asking for a FREE Strategy Session by clicking 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.
The information contained in this article was pulled from third-party sites mentioned under references. Norada Real Estate Investments provides no express or implied claims, warranties, or guarantees that the information is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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
