Cleveland Investment Property for Sale - 2023 Rental Home Appreciation
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.
Cleveland's Attractive Housing Market
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.
- Akron: Akron is a suburb south of Cleveland along I-77. It’s the birthplace of the American trucking industry and home to the All-American Soap Box Derby. The median listing price in Akron is $91/sqft, and the median sales price is $119,900. The median rent is $850/month.
- Canton: Canton is south of Akron along I-77. It’s considered a small, friendly city home to the Football Hall of Fame. The median listing price in Canton is $103/sqft, and the median sales price is $149,900. The median rent is $725/month.
- Cleveland Heights: Cleveland Heights is in east Cleveland, just south of Collinwood. It’s known for its wide variety of homes – everything from colonials to bungalows and historic mansions to new condos. The median listing price in Cleveland Heights is $106/sqft, and the median sales price is $189,900. The median rent is $910/month.
- Detroit Shoreway: Detroit Shoreway is a neighborhood on the West Side of Cleveland, just west of Ohio City. It borders Edgewater State Park and I-90. Detroit Shoreway is known for its gorgeous views of Lake Erie. The median listing price in Detroit Shoreway is $198/sqft, and the median sales price is $338,400. The median rent is $1,400/month.
- Elyria: Elyria is located 23 miles southwest of Cleveland along I-80. It’s the headquarters of several large companies, including Invacare and EMC Precision Machining. Elyria is considered very kid-friendly and attracts many families. The median listing price in Elyria is $108/sqft, and the median sales price is $154,950. The median rent is $850/month.
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.
Rental Home Appreciation in Cleveland
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.
Economic Growth in Cleveland
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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