Landlord Tips & Tricks
March 18, 2024

Cleveland Real Estate Market Overview - 2024

Steadily's blog cover page for information around landlord insurance.

Cleveland Real Estate Market at a Glance

Cleveland's real estate market exhibits a blend of competitive sales conditions and accessible home values, uniquely positioning it in the dynamic Ohio housing landscape.

Current Housing Trends

The Cleveland housing market is currently experiencing competitive conditions, with homes receiving multiple offers. A home in Cleveland, on average, can expect to receive 3 offers and sell in approximately 44 days.

Average Home Values and Sale Prices

Cleveland's median sale price of a home was recently noted at $105,000, marking a significant 16.6% increase since last year. This puts the median sale price per square foot at $71, which as well has seen a rise of 4.4% compared to the previous year.

Inventory and Home Availability

The inventory in the Cleveland real estate market has seen a slight growth; February 2024 reported a 3.5% increase, bringing the total to 2,521 homes for sale. This trend indicates a balanced flow between homes for sale and the ensuing demand.

Demand and Buyer Competition

In Cleveland, buyer demand remains steadfast. The real estate market reports reflect sustained interest in Cleveland properties, despite varying periods of market absorption. The sales pace couples with the demand, fostering an environment where buyer competition is a notable aspect of the Cleveland housing market narrative.

Economic Factors Influencing the Market in Cleveland

The Cleveland real estate market is shaped by a variety of economic factors ranging from broader economic conditions to local employment trends. Insight into these factors helps one understand the fluctuations and tendencies in the housing landscape.

Macro-Economic Indicators

The United States economy has a direct impact on Cleveland's real estate through indicators such as per capita GDP and the unemployment rate. In recent years, the U.S. has experienced a per capita GDP that reflects steady economic growth. However, local markets like Cleveland must also adjust to national unemployment rates, which affect consumer confidence and, in turn, real estate demand.

Job Market Dynamics

Employment opportunities in sectors like healthcare have made Cleveland a focal point for job growth. A strong job market bolsters housing demand as more people are able to afford homeownership. Conversely, any shifts in unemployment rates could cool down or heat up the market correspondingly.

Population and Demographics

Cleveland's population dynamics influence housing supply and demand. A growing population, often driven by job opportunities and economic incentives, can lead to increased demand and higher median sale prices. Demographic trends, such as the influx of millennials into the market, are also crucial as they dictate the types of properties that are in demand.

Real Estate Investment in Cleveland

Investors looking at the Cleveland real estate market can expect to find a landscape characterized by significant growth in home values, alongside a favorable environment for rental investments due to a higher rental yield compared to the national average.

Market Trends and Predictions

Home Sales Trends: In January 2024, the Cleveland housing market evidenced robust activity with a significant increase in homes sold — 326 homes compared to 259 in the same period last year. This growth suggests a steady uptick in demand, while the supply of homes keeps pace, offering ample opportunities for homebuyers and investor entry.

Future Predictions: Moving forward, 20% of Cleveland homebuyers are considering relocating out of the city, hinting at potential shifts within the market. However, home values have witnessed a remarkable 115% cumulative increase over the past five years, and projections remain positive, pointing towards ongoing appreciation within the metropolitan area.

ROI and Profitability

Cash Flow Considerations: Rental housing in Cleveland presents a compelling case for investors, with average home values standing at $213,457 — markedly below the national figure. The implication for investment is a favorable rent to value ratio of 0.63%, indicating strong potential for positive cash flow.

Appreciation and ROI: Investors also benefit from an appreciation rate that bolsters overall Return on Investment (ROI). With a 37.82% lower cost than the national average yet a consistently appreciating market, Cleveland emerges as an attractive site for real estate investment. In specific areas like the Jefferson neighborhood, an 18.1% year-over-year increase in sales price closely aligns with the rental desires of nearly half its residents, reinforcing both the viability and profitability of investing in the Cleveland metro area.

Comparative Market Analysis

Comparative Market Analysis (CMA) is a tool for understanding property values. It involves looking at sold properties, current listings, and expired listings to estimate property market values. In Cleveland, these analyses can provide insights into real estate trends and help guide buyers and sellers.

Cleveland vs. National Averages

When comparing Cleveland's real estate market to national averages, a clear discrepancy is often observed. The median home sold price in Cleveland typically falls below the national average, indicating more affordable housing options. For example, while the national average may hover around the $300,000 mark, Cleveland's median price can be substantially lower, lending to a cost of living that is attractive to potential homeowners and investors.

Market Comparisons by Neighborhood

Cleveland's neighborhoods exhibit a diverse range of average home values:

  • Downtown: High demand and redevelopment projects lead to a higher price per square foot.
  • West Side (Ohio City, Tremont): Known for historic charm, which contributes to higher median list prices.
  • East Side (University Circle): Proximity to institutions like hospitals and universities boosts home values.

Comparisons at the neighborhood level provide detailed insights about where the real estate market stands against city averages.

Price Per Square Foot

In Cleveland, the price per square foot can be a revealing metric, varying significantly across different areas:

  • Urban Core: Commanding a higher price due to newer developments and amenities.
  • Suburbs: Often more affordable, reflected in a lower price per square foot, appealing for those seeking larger properties at competitive rates.

This measure helps investors and homeowners understand where value for money can be found relative to space.

Living in Cleveland

Living in Cleveland offers a unique blend of urban amenities and lakeside charm. Residents enjoy a high quality of life bolstered by excellent educational institutions, comprehensive healthcare services, and a diverse array of cultural and recreational activities.

Quality of Life and Amenities

Cleveland delivers a well-rounded living experience. The cost of living is quite favorable when compared to the national average, allowing for a comfortable lifestyle. The city provides a range of amenities from local parks to retail hubs. Lake Erie enhances the appeal, providing scenic views and recreational opportunities that contribute to the residents' quality of life.

Education and Healthcare

Home to top-rated institutions, Cleveland’s commitment to education is fundamental. Cuyahoga County supports a multitude of public and private schools, including highly regarded universities such as Case Western Reserve University. In terms of healthcare, Cleveland Clinic stands out as a world-renowned center for medical excellence, attracting patients and healthcare professionals from around the globe.

Cultural and Recreational Attractions

Cleveland is rich in cultural heritage, with the Cleveland Museum of Art being one of the city's jewels, housing a diverse and significant art collection that draws visitors year-round. The city's cultural scene is rounded out by a vibrant music and theater district, while sports enthusiasts relish the thrills of Cleveland’s professional teams. The proximity to Lake Erie also allows for a variety of outdoor activities, resonating with those who have an affinity for nature and water sports.

Housing Market Logistics in Cleveland

In analyzing the Cleveland Real Estate Market, understanding the logistics of home sales, market timing, and the intricacies of handling multiple offers is essential for both buyers and sellers.

Home Sales Processes

When a seller lists their Homes for Sale in Cleveland, they tap into a process that includes evaluating home values, listing the property, marketing, and navigating negotiations. Home Price plays a critical role in attracting potential buyers. Recent reports suggest that the market had 2,521 homes for sale in February 2024, marking a modest increase compared to January 2024.

Market Timing and Seasonality

Typical Days on Market for Homes in Cleveland can vary, influenced by seasonality. Sellers need to understand the best timing to enter the market to optimize their sale terms. The market's seasonality could mean that listing in February could be different in terms of demand and supply dynamics than in other months.

Navigating Multiple Offers

In scenarios of high demand, Sellers may encounter Multiple Offers. It is crucial to have a strategy for evaluating these offers to maximize the benefits of the sale. The approach should consider not only the offer price but also buyer contingencies and potential closing timelines. The Home Value in Cleveland, averaging around $213,457 in 2024, will influence the likelihood and nature of multiple offers.

Challenges and Opportunities in Cleveland

The Cleveland housing market presents a complex landscape punctuated by distinct challenges and opportunities, particularly concerning market accessibility, economic fluctuations, and the handling of distressed properties.

Market Accessibility for First-Time Buyers

For first-time homebuyers, the Cleveland housing market offers a blend of affordability and opportunity. As of January 2024, Cleveland's average home value of $213,457 stands below the national average, presenting a potentially attractive entry point for young individuals looking to own their first home. However, navigating this market requires understanding its unique dynamics, as the balance between supply and demand can swiftly change, impacting prices and availability.

Impact of Economic Shifts on Housing

The local economy, with its roots in manufacturing and service industries, significantly influences the Cleveland housing market. Economic shifts can lead to periods of both growth and contraction in housing demands. While Cleveland has seen a robust increase in home sales, there remains a cautious watch on the negative absorption in the office market sector, signaling the need to stay informed about broader economic changes that could affect the residential real estate environment.

Foreclosure and Distressed Properties

Foreclosures are a reality in any real estate market, and Cleveland has its share of distressed properties. While these properties can represent a potential investment opportunity for some buyers, they also reflect the ongoing challenges that some homeowners in the market face. Dealing with foreclosures requires a nuanced understanding of both the market trends and the legal framework governing such properties in Ohio. The impact of foreclosures on the Cleveland housing market serves as a gauge for the economic pressures faced by homeowners in the region.

Urban Development and Expansion in Cleveland

Cleveland's real estate landscape is undergoing notable changes with a surge in construction initiatives and new listings, particularly in revitalization zones and corridors primed for economic growth. This expansion is closely tied to transportation and infrastructure projects that aim to bolster connectivity within the metro area.

Construction and New Listings

In recent developments, the Cleveland metro area has witnessed a significant increase in homes sold. In January 2024 alone, there were 326 homes sold, reflecting the city's robust construction pace. New listings are consistently entering the market, feeding the demand from both locals and those migrating to the city. This is indicative of Cleveland's commitment to expanding its residential offerings and providing diverse housing options.

Revitalization Projects and Growth Areas

Revitalization efforts are transforming Cleveland's landscape, with significant projects unfolding in the Health-Tech Corridor. This area attests to Cleveland's growth as a hub for medical and technological innovation, attracting businesses and residents alike. Investments in key areas are expected to fuel the city's economic development while renovating the urban fabric to meet modern living standards.

Transport and Infrastructure Improvements

Transportation enhancements are essential to Cleveland's urban development. Efforts to improve the city's infrastructure include upgrades to public transit systems and the strengthening of road networks, facilitating better movement for residents and stimulating the manufacturing sector. These infrastructure projects are not only improving current residents' quality of life but are also a key factor in attracting new migration to the area.

Frequently Asked Questions

The Cleveland real estate market is dynamic, with observable trends and evolving conditions that could influence investment and purchasing decisions. Understanding the market requires examining current data, historical changes, neighborhood potentials, market favorability, and future growth prospects.

What are the current trends in the Cleveland housing market for 2024?

In 2024, the Cleveland housing market trends reveal a notable increase in home values with a surging interest in both residential and commercial investments.

How have average home prices in Cleveland, Ohio, changed in recent years?

Recently, average home values in Cleveland have experienced an upward trajectory, reflective of the broader economic factors impacting real estate across the nation.

Which factors contribute to the affordability of real estate in Cleveland?

Affordability in Cleveland's real estate is influenced by several factors, including a diversified economy, the cost of living, and the balance between supply and demand in the housing market.

What are the best neighborhoods to invest in within the Cleveland area?

The best neighborhoods for investment within Cleveland are typically those with rising property values, low vacancy rates, and strong rental demand, aligning with broader market conditions.

Is the Cleveland real estate market currently favoring buyers or sellers?

Market conditions in Cleveland are evolving, but whether the market favors buyers or sellers can fluctuate based on inventory levels, interest rates, and economic factors.

How does the future development outlook of Cleveland, Ohio, affect its real estate investment potential?

The future development in Cleveland is poised to positively impact real estate investment potential, with urban renewal projects and infrastructure improvements catalyzing property value growth.

This post is for informational purposes only and does not serve as legal, financial, or tax advice. Consult your own legal, financial, or tax advisor for matters mentioned here. The information on this site is general in nature. Any description of coverage is necessarily simplified. Whether a particular loss is covered depends on the specific facts and the provisions, exclusions and limits of the actual policy. Nothing on this site alters the terms or conditions of any of our policies. You should read the policy for a complete description of coverage. Coverage options, limits, discounts, deductibles and other features are subject to individuals meeting our underwriting criteria and state availability. Not all features available in all states. Discounts may not apply to all coverages. Steadily is not liable for any actions taken based on this information. If you believe any of this information may be inaccurate please contact us.

Download your free resource

Table of Contents

Get coverage in minutes

One of America's best-rated landlord insurance services. No hidden cancellation fees. Competitive rates nationwide.

Get a quote
Get Appointed

Delight your clients with one of America's best-rated landlord insurance services nationwide.

Apply Today

Video Library

View all videos

Other Resources

Get coverage in minutes

No hidden cancellation fees. Competitive rates nationwide.

    Thank you! Your submission has been received!
    Oops! Something went wrong while submitting the form.

    Get Appointed

    Become a Steadily appointed agent and start selling one of America's best-rated landlord insurance services.