If you are looking at buying a house in Cleveland you must read till the end. Cleveland is often looked at as a has-been market. However, its turnaround has created several opportunities for investors and residents alike. The Cleveland housing market has slowed down to rising mortgage rates. In November, both sales and new listings were down as compared to last year. Home prices are rising by single digits and the forecast for 2023 is mixed. According to Zillow, home values in the Cleveland MSA may decline by 0.1% during the next twelve months ending November 2023.
According to Realtor.com, Cleveland-Elyria, Ohio has been ranked 32nd among the 100 largest U.S. metros in their 2023 housing forecast. In 2023, Cleveland home prices are projected to increase by 4.3%, while home sales are projected to increase by 2.7%. The combined sales and price change (% Y/Y) is anticipated to be 7.0%.
The following Cleveland housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com for November 2022. Land, multi-unit, and other property types are excluded. This data is provided as an informational resource only. The median listing price of homes for sale in Cleveland, Ohio was $115K, which was flat from the prior year.
The median asking price per square foot for homes was $77. The median sales price was $120,000. In November 2022, homes in Cleveland, OH sold for 2% less than their asking price on average. Homes sold after 48 days on the market on average. The median days on market in Cleveland, OH has decreased from last month, and have decreased significantly since last year.
Cleveland Housing Market Trends
The FHFA provides a measure of typical price inflation for houses within the United States for the state, national, and Metropolitan Statistical Areas. FHFA releases HPI data and reports on a quarterly and monthly basis. Cleveland–Elyria Metropolitan Statistical Area (MSA) is ranked #56 in the FHFA HPI® Top 100 Metro Area Rankings based on house price change in 2022 Q3. In Cleveland–Elyria house prices rose 10.8% over the past year and rose 0.4% over the last quarter. The Cumulative change in the Cleveland house price index since 2007 has been +57.7%.
How Hot Was the Cleveland Housing Market in November 2022?
Data by Redfin, a real estate company, shows that the Cleveland housing market is somewhat competitive. Homes in Cleveland receive 2 offers on average and sell in around 33 days. The average home in Cleveland sells for about 4% below the list price. A hot listing on Redfin can sell for about 2% above the list price and go pending in around just 9 days.
- The average sale price of a home in Cleveland was $112K last month, down 6.7% since last year.
- The average sale price per square foot in Cleveland is $79, down 5.4% since last year.
- In November 2022, Cleveland home prices were down 6.0% compared to last year, selling for a median price of $113K.
- On average, homes in Cleveland sell after 27 days on the market compared to 37 days last year.
- There were 362 homes sold in November this year, down from 448 last year.
- Sale-to-List Price was 96.0%.
- 30.4% of Homes Sold Above the List Price.
- 27.7% of Homes were sold with price drops.
Cuyahoga County Housing Market Report
Cuyahoga County is located in the northeastern part of the U.S. state of Ohio. It is the second-most-populous county in the state. The county seat and largest city is Cleveland. Here's the November 2022 Market Report for Cuyahoga County released by the Akron Cleveland Association of REALTORS®.
Cleveland is a seller's real estate market. Months Supply of Inventory is just 1.6 months as of November 2022. It refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Six months of supply has historically been associated with moderate price appreciation, while a lower level of months' supply tends to accelerate price increases.
- Total homes sold in Cuyahoga County were 1602, down 26.9% year-over-year.
- In Nov 2022, the median sales price in Cuyahoga County was $190K, up 5.6% year-over-year.
- The average sales price was $234,500, up 4.1% year-over-year.
- Homes are typically seeing offers accepted slower than a year ago.
- The median days on market is 36 days, up 2.9% year-over-year.
- New listings were down 14.3% compared to 2022.
- Pending sales were also down 13.4% compared to the same month in 2022.
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 $1,045. This is a 19% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Cleveland decreased by -6% to $1,000. The average rent for a 1-bedroom apartment decreased by -16% to $1,045, and the average rent for a 2-bedroom apartment decreased by -25% to $975.
- The average rent for a 2-bedroom apartment in Cleveland, OH is currently $975, a 22% decrease compared to the previous year.
- The average rent for a 3-bedroom apartment in Cleveland, OH is currently $1,150, a 10% decrease compared to the previous year.
- The average rent for a 4-bedroom apartment in Cleveland, OH is currently $1,335, a 12% 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
What are the Cleveland real estate market predictions for 2023? 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 67.95%, which ranks in the top 50% nationwide. This equates to an annual average Cleveland house appreciation rate of 5.32%. The Cleveland real estate market remains strong to favor sellers, due to persistent imbalance in supply and demand.
NeighborhoodScout's data show that during the twelve months, from 2021 Q2 – 2022 Q2, Cleveland's appreciation rate, at 13.03%, has been at or slightly above the national average. In the latest quarter tracked by them (2022 Q1 – 2022 Q2), Cleveland's appreciation rate has been 2.31%, which annualizes to a rate of 9.57%.
The five-county Cleveland–Elyria Metropolitan Statistical Area (MSA) consists of Cuyahoga County, Geauga County, Lake County, Lorain County, and Medina County, and has a population of over 2 million. The typical home value of homes in Greater Cleveland or Cleveland–Elyria Metro is currently $219,184. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. It indicates that 50 percent of all housing stock in the area is worth more than $219,184 and 50 percent is worth less (adjusting for seasonal fluctuations).
The housing forecast for the Cleveland MSA is negative according to Zillow. Cleveland–Elyria Metro home values are forecasted to remain flat or may drop by 0.1% between November 2022 to November 2023. That's Zillow's most recent forecast for Cleveland. It is to be noted that rising mortgage rates have decreased home buying demand and it can lead to a fall in home prices. However, Cleveland is a 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, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. Also, in a balanced real estate market, it would take about six months for the supply to dwindle to zero. In terms of housing supply, the Cleveland market can tip to favor buyers if the supply increases to more than six months of inventory. And that's quite unlikely to happen in 2023. According to some experts, after more than doubling this year, mortgage rates are expected to retreat in 2023. So, Cleveland home prices may not decline if the mortgage rates stop rising in 2023.
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).
- Central South
- Central Southwest
- Central East
- Downtown South
- Ohio City South
- Clark Fulton North
- Ohio City
- Tremont North
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