Cleveland is a city filled with vibrant neighborhoods, family-friendly parks, and a renowned food scene, making it an attractive place to call home. Whether you’re looking to buy or sell property in Cleveland, understanding the nuances of the local real estate market is essential to making informed decisions.
This guide provides an in-depth look at the Cleveland housing market, including key trends, influencing factors, and predictions for the future.
What is a Real Estate Market?
If you’re new to real estate, the term real estate market refers to the network of buyers and sellers trading properties within a specific area. This market is shaped by various factors, such as supply and demand, economic conditions, and local trends, which help identify investment opportunities or sales prospects.
Why Choose Cleveland, OH?
Located in Cuyahoga County, Cleveland is known for its rich cultural heritage and iconic landmarks like Lake Erie, the Rock & Roll Hall of Fame, and the Cleveland Museum of Art. These attractions, coupled with its affordability and growth potential, make Cleveland an appealing destination for real estate investors.
Cleveland’s real estate market is thriving, with properties often selling quickly—some within just a day of being listed. Nearly half of the homes in Cleveland are rental properties, reflecting a robust rental market. Additionally, Cleveland’s relatively low home prices provide opportunities for strong long-term investments.
Cleveland Housing Market Trends
Cleveland’s real estate market remains competitive. Here are some key statistics based on recent data:
- Days on Market: Homes in Cleveland receive an average of two offers and sell within 26 days.
- Median Home Price: The median sale price is $127,750, reflecting an 11.1% increase year-over-year.
- Sale Price Per Square Foot: The average is $87, a 1.1% decrease from the previous year, but 69% below the national average.
- Number of Homes Sold: 342 homes were sold recently, a 19.7% decrease compared to last year.
- Sale-to-List Price Ratio: On average, homes sell for 4% below the listing price and go pending in 32 days.
- Hot Properties: The most desirable homes sell for 3% above the list price and go pending in just 7 days.
Factors Influencing the Cleveland Real Estate Market
Understanding these key factors will help you navigate the Cleveland real estate landscape:
1. Quality of Life
Cleveland boasts a cost of living that is 6% lower than the national average, making it an attractive option for homebuyers. Additionally, features like backyards, renovated kitchens, and finished basements tend to increase property value.
2. Rental Market
Rental properties are a significant component of Cleveland’s housing market. With 58% of homes tenant-occupied, the average rent is $1,150 per month, offering lucrative opportunities for rental property investors.
3. Economic Conditions
Cleveland’s economy is diverse, with sectors like healthcare, manufacturing, and education driving growth. While the unemployment rate is higher than the national average, the low cost of living and rising job opportunities help balance the market.
4. Mortgage Interest Rates
High interest rates have slowed Cleveland’s housing market, as they tend to discourage buyers and push up home prices. However, this can benefit long-term investors who focus on market stability.
5. Demographics
Cleveland maintains a steady population of approximately 400,000, with a significant portion of younger residents. Gradual population growth supports a stable housing market, with certain neighborhoods experiencing rising home values due to new businesses and attractions.
6. Climate
Cleveland’s climate is another consideration. While summers are warm, winters can be harsh, and there is a notable risk of flooding in certain areas, currently affecting 7% of homes.
7. Job Market
Investments in industries like bioscience and healthcare have spurred job growth, attracting professionals and increasing demand for housing near employment hubs.
8. Inventory
Low housing inventory in Cleveland creates a competitive market, favoring sellers and driving up home prices.
Cleveland Real Estate Market Predictions
Cleveland’s real estate market has proven to be a stable long-term investment. With continued job growth and a high quality of life, experts predict that the market will remain robust in the coming years.
Key Insights:
- The 10-year average appreciation rate is 75.58%, with a median annual appreciation rate of 5.79%.
- Zillow forecasts a potential 0.6% increase in home values from March 2023 to March 2024.
- Cleveland is expected to remain a seller’s market due to limited housing inventory and high demand.
Final Thoughts
Whether you’re looking to buy, sell, or invest in Cleveland real estate, the city offers numerous opportunities. With affordable prices, a thriving rental market, and strong long-term growth potential, Cleveland is a wise choice for property investments.
If you’re managing rental properties, consider streamlining your workflow with DoorLoop’s innovative property management software. Sign up for a free demo to learn more!
FAQs
1. What are the best neighborhoods in Cleveland?
- Downtown Cleveland
- Ohio City
- Tremont
- Edgewater
- Kamm’s Corner
- University Circle
2. Are home prices in Cleveland above or below the national average?
Cleveland homes sell for approximately 67% below the national average, making it an affordable market.
3. Is Cleveland a buyer’s or seller’s market?
Cleveland is currently a seller’s market, with low inventory and high demand driving competition among buyers.