State: Ohio
The Cleveland real estate market presents many opportunities for real estate investors. It’s an affordable market with above-average appreciation and high demand for rental properties. Cleveland is also considered a low-risk market. As a result, the demand for housing is rapidly increasing.
Real estate investors must act quickly to invest in a Cleveland home. There’s roughly one month of supply, and sales have increased by over 10% since last year.
The Cleveland housing market is known for its fixer-uppers, like Detroit, Milwaukee, and Pittsburgh. Real estate flippers are turning them into turnkey properties that attract renters.
Real estate investors can find nearly every property type in Cleveland’s property listings. Whether you’re looking to invest in single-family homes or multifamily housing, there’s a Cleveland investment property for you.
The Cleveland area is home to many great neighborhoods and suburbs for real estate investors to consider. They include Akron, Canton, Cleveland Heights, Detroit Shoreway, and Elyria.
A few other Cleveland neighborhoods worth noting are Euclid, home to the Polka Hall of Fame; Garfield Heights, a suburb not far from Downtown Cleveland; and Tremont, an artsy, residential neighborhood full of Victorian homes.
A Cleveland rental property has the potential to yield significant returns for real estate investors and property management companies. The reason? A robust rental market, affordable home prices, and solid appreciation.
The Cleveland rental market is very strong. Over half (55%) of Cleveland households are renter-occupied, creating a lot of demand for rental properties. The city has a vacancy rate of 4.8%.
According to Realtor, the median listing price in Cleveland, Ohio is $82 per square foot with a median sale price of $115,000. Zillow’s Home Value Index reports a 20.9% change since last year. The median rent in Cleveland is $975 per month.
Experts project real estate investors can expect a cap rate of around 2% in the Cleveland area.
Combine a robust rental market with above-average appreciation and the affordability of Cleveland homes, and there’s a lot of potential for investors to increase their cash flow.
Cleveland is the seat of Cuyahoga County, Ohio. The Greater Cleveland Area is the 34th largest metropolitan area in the U.S. It has a strong, diverse economy that provides a solid foundation for the city’s rental market.
Cleveland, Ohio’s primary industries are healthcare, finance, education, manufacturing, and technology. The largest employers are Cleveland Clinic, University Hospitals, Minute Men HR, and Progressive Insurance. Greater Cleveland is also the headquarters of Sherwin-Williams, American Greetings, and KeyBank. These employers fuel the city’s economic growth. In fact, the median household income in Cleveland has increased by nearly 2% since last year.
The Cleveland real estate market offers affordability, above-average appreciation, a robust rental market, and a stable economy. They combine to create a tremendous real estate investment opportunity.
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