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. As of June 2023, the city's real estate landscape stands at an interesting crossroads. 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.
Cleveland Housing Market Trends
According to data by Redfin, the Cleveland housing market is somewhat competitive. Homes in Cleveland receive 3 offers on average and sell in around 27 days. The median sale price of a home in Cleveland was $120K last month, down 2.4% since last year. The median sale price per square foot in Cleveland is $85, up 0.0% since last year.
In August 2023, Cleveland home prices were down 2.4% compared to last year, selling for a median price of $120K. On average, homes in Cleveland sell after 27 days on the market compared to 29 days last year. There were 385 homes sold in August this year, down from 441 last year.
Median Sale Price Comparison
The median sale price in Cleveland is significantly lower, at 72% below the national average. Additionally, the overall cost of living in Cleveland is 7% lower than the national average.
Competitiveness in Cleveland Housing Market
Cleveland's housing market is somewhat competitive, with homes selling in 26 days. The Redfin Compete Score™ rates the area's competitiveness at 70, indicating a moderately competitive market. Some homes receive multiple offers, with average homes selling for about 2% below list price.
Nearby Cities Comparison
Comparing Cleveland with nearby cities, it's evident that some cities have a very competitive housing market. For example, homes in certain nearby cities can sell for about 9% above list price and go pending in around 4 days.
Cleveland Migration & Relocation Trends
Approximately 0.62% of homebuyers across the nation searched to move into Cleveland from outside metros. Los Angeles homebuyers topped the list, followed by New York and Washington.
In summary, the Cleveland housing market offers a variety of options for potential buyers and investors. While the median sale price is lower than the national average, the market is somewhat competitive with homes selling within a reasonable time frame. It's essential to consider factors like school ratings, environmental risks, and the overall competitiveness of the market when making real estate decisions in Cleveland.
Cleveland Rental Market Trends
Cleveland has a mixture of owner-occupied and renter-occupied housing. The average rent for a 1-bedroom apartment in Cleveland, OH is currently $1,305. This is a 6% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Cleveland decreased by -3% to $1,055. The average rent for a 1-bedroom apartment increased by 5% to $1,305, and the average rent for a 2-bedroom apartment remained flat.
- The average rent for a 2-bedroom apartment in Cleveland, OH is currently $1,100, a 12% decrease compared to the previous year.
- The average rent for a 3-bedroom apartment in Cleveland, OH is currently $1,250, a 5% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in Cleveland, OH is currently $1,400, a 17% increase compared to the previous year.
- Some of the most expensive neighborhoods in Cleveland are Detroit – Shoreway, Downtown Cleveland, and Ohio City.
- Some of the most affordable neighborhoods in Cleveland are North Collinwood, Edgewater, and Cudell.
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.
The cumulative appreciation rate over the ten years has been 75.58%, which ranks in the top 50% nationwide. This equates to an annual average Cleveland house appreciation rate of 5.79%. The Cleveland real estate market remains strong to favor sellers, due to persistent imbalance in supply and demand.
The Cleveland-Elyria housing market has seen a positive trend in the past year. The average home value is now at $218,489, representing an increase of 3.5% over the past year. Additionally, homes in this area typically go to pending in about 6 days, indicating a relatively fast-paced market. This data is accurate up to August 31, 2023.
Market Forecast and Sales Statistics
Looking ahead, Zillow's 1-year market forecast for the Cleveland-Elyria area as of August 31, 2023 predicts a growth of 4.6%. The median sale to list ratio as of July 31, 2023, stands at 1.005, indicating a balanced market. In July 2023, about 54.7% of sales were over list price, while approximately 32.4% of sales were under list price. The median days to pending in this market is 6.
Is It a Good Time to Buy a House in Cleveland?
Considering the current market conditions, with a reasonable increase in home values and a balanced median sale to list ratio, it could be seen as a good time to buy a house in Cleveland. The fast pace of sales with homes going to pending in just 6 days suggests a market where buyers need to act swiftly.
Cleveland: A Buyer's or Seller's Market?
As of the recent data available, the Cleveland housing market appears to be more favorable for sellers. With over half of the sales (54.7%) going over the list price, it indicates a competitive environment where sellers have the upper hand. However, the balanced median sale to list ratio (1.005) suggests a fair opportunity for both buyers and sellers, leaning slightly towards a seller's market.
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).
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).
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.
Market Data, Trends & Statistics
Brownfields / urban redevelopment
The Opportunity Corridor
The Western Rim
Biomedical hubs and hospitals