Last updated on July 1, 2022
More than 50% of the households in Cleveland are occupied by renters, making the market perfect for rental property investors. In fact, Cleveland.com reports that the housing price surge in the metro area is expected to continue, which could increase the demand for rental property in Cleveland even more.
The real estate market in Cleveland is competitive, with some homes going under contract the same day they are listed. One reason homes are selling quickly in Cleveland is that prices here are still very affordable, with the median listing price for a home in Cleveland only $115,000.
The diversified economy helps keep the rental market strong in Cleveland. For a city that once relied on the manufacturing industry for growth, Cleveland has done a remarkable job of transforming its economy into a well-balanced blend of service, high tech, blue and white collar employment.
Located along the southern shore of Lake Erie, Cleveland is just across from the Canadian border. The metro area is home to the Rock and Roll Hall of Fame, one of the world’s finest orchestras, and major professional baseball, football, and basketball teams.
Here’s why Cleveland could be a great place to invest in rental property in 2022.
>>Explore Roofstock's Cleveland properties here.
Population growth
Let's take a look at some of the population data for Cleveland:
Key Population Stats:
- The MSA of Cleveland has seen its population shrink over 6% between 2010 to 2020.
- Cleveland has a city population of nearly 373,000 and a metropolitan population of more than 2 million, ranking Greater Cleveland as the 34th-largest metro area in the U.S.
- Population of Cleveland has declined 0.42% year-over-year while median household incomes grew by 1.82%.
Job market
The unemployment rate in Cleveland is down to just 5.5% (as of April 2022), according to the U.S. Bureau of Labor Statistics (BLS). As the economy in Cleveland continues to recover, job sectors showing the fastest signs of growth include construction, trade and transportation, professional and business services, and leisure and hospitality.
While job growth in Cleveland has historically lagged behind some of the city’s peers, a recent report in Cleveland.com notes that per capita GDP in Cleveland surpassed Sun Belt metros such as Phoenix, San Antonio, and Las Vegas.
The renewed focus on space exploration is good news for the fuel cell industry and the NASA Glenn Research Center in Cleveland. Companies with corporate headquarters in Cleveland include Applied Industrial Technologies, Cliffs Natural Resources, and Sherwin-Williams Company. The Federal Reserve Bank of Cleveland, one of only 12 Reserve Banks in the U.S., is in downtown Cleveland.
Key Employment Stats:
- GDP of Cleveland is nearly $114.3 billion, an increase of more than 6% over the past 10 years.
- Employed population of Cleveland declined by 0.54% year-over-year, while median household incomes have increased by 1.82% over the same period.
- The healthcare sector is one of the major employers in Cleveland, including the Cleveland Clinic, University Hospitals of Cleveland, MetroHealth, and Medical Mutual of Ohio.
- Biotechnology, fuel cell research, and technology are three of the growing employment sectors in Cleveland. In fact, according to Cleveland.com, many Silicon Valley high-tech workers are choosing to relocate to Cleveland and Ohio.
- Despite the shift to professional service and high tech business, construction and manufacturing in Cleveland still account for a significant amount of employment growth. Nearly 3,000 new manufacturing jobs were created over the last couple of years, while the construction industry added more than 1,700 new jobs during the same period.
- Since 2009, per capita income in Cleveland has steadily grown and is now at $34,743 while median household income is $57,263.
- Nearly 32% of the adults in Cleveland hold an undergraduate degree or higher, about 10% higher than the rate in Ohio.
- Cleveland is served by five Interstate Highways and several freight railroads. The Port of Cleveland is a major bulk freight terminal on Lake Erie.
- More than 5.1 million domestic and international passengers traveled through the Cleveland Hopkins International Airport (CLE) through September 2021, while shipping facilities at CLE have handled more than 63,000 tons of cargo over the same time period.
- Playhouse Square in Cleveland is the 2nd-largest performing arts center in the country, right behind New York’s Lincoln Center, and the Cleveland Museum of Arts is home to more than 40,000 works.
- Real estate investors who are pro sports fans will find Cleveland offers a winning combination: Major League Baseball’s Cleveland Indians, the NFL’s Cleveland Browns, and the NBA’s Cleveland Cavaliers.
Real estate market
Cleveland is ranked as the #1 best city in America to buy a home by Money Crashers, based on relative prices compared to regional and national averages, and prospects for further appreciation. The affordability of single-family homes in Cleveland is especially appealing to remote real estate investors and to people working from home.
Successful real estate investors know how to make money in any market cycle, which is one reason people are investing in Cleveland rental property. Cleveland is one of the most recession-resistant markets in the U.S., according to Crain’s Cleveland Business.
When measured by the investment variables of home price volatility, home sales flips, average loan-to-value, and home price-to-income ratio, Cleveland ranks as one of the top four markets with the lowest risk of a real estate dip.
Key Market Stats:
- Zillow Home Value Index (ZHVI) for Cleveland is $109,258 through May 2022.
- Home values in Cleveland have increased by 20.9% over the last year.
- Over the past five years home values in Cleveland have increased by nearly 115%.
- Median list price of a single-family home in Cleveland is $115,000 based on the most recent report from Realtor.com (April 2022).
- Median listing price per square foot of a home in Cleveland is $82.
- Days on market (median) is 48.
- Median sold price for a single-family home in Cleveland is $125,200.
- Sale-to-list price ratio is 100%, with homes in Cleveland selling for approximately the asking price.
- Of the 40 neighborhoods in Cleveland, Tremont is the most expensive with a median listing price of $440,000.
- Most affordable neighborhood in Cleveland to buy a home is South Collinwood with a median listing price of $59,900.
Strong renters’ market
Demand for housing in Cleveland is high and inventory is low, with the average home price up to $236,873, according to the April 2022 report for Cuyahoga County from the Akron Cleveland Association of Realtors. Buyer in the metro area need to act quickly, with the inventory of available homes down to just a 1.3 month supply and the number of active listings down nearly 7.9% year over year.
Rising home prices in Cleveland are helping to create a strong demand for single-family rental property, with over half of the housing units occupied by renters. Along with Cincinnati and Dayton, rental property in Cleveland can provide investors with cash flow combined with solid appreciation over the long term.
Key Market Stats:
- Median rent in Cleveland is $1,100 per month for a 3-bedroom home, based on the most recent research from Zumper (June 2022).
- Rents in Cleveland have increased by 10% over the last year and increased by about 20% over the past 3 years.
- Rents are still relatively affordable in Cleveland. In fact, over 60% of the housing units rent for less than $1,500 per month.
- 55% of the households in Cleveland are occupied by renters.
- Most affordable neighborhoods in Cleveland for renters include North Broadway, Mount Pleasant, and South Collinwood where rents are less than $850 per month.
- Most expensive areas in Cleveland to rent include Downtown Cleveland, Hough, and Tremont where rents range between $2,250 and $2,550 per month.
Historic price changes & housing affordability
Reviewing historic price changes and affordability are two methods real estate investors use to decide whether or not to invest in a specific area. Short- and long-term price changes help guide investment strategy, while affordability is one way to gauge the potential demand for rental housing.
The most recent Freddie Mac House Price Index (FMHPI) report for the Cleveland-Elyria, OH MSA reveals:
- April 2017 HPI: 107.4
- April 2022 HPI: 163.1
- 5-year change in home prices: 51.8%
- One-year change in home prices: 11.9%
- Monthly change in home prices: 1.0%
Using research from ATTOM Data Solutions, Kiplinger conducted a home price and affordability study of the top 100 housing markets in the U.S.:
- Since the last real estate cycle market peak in May 2006, home prices in Cleveland have decreased by 2.5%.
- Since the last real estate cycle market bottom in March 2012, home prices in Cleveland have increased by 78.4%.
- Cleveland has an affordability index of 1 out of 10, meaning the metro area is one of the more affordable places to own a home in the U.S.
Quality of life
Forbes rated the Cleveland metropolitan area as one of the best places in the U.S. for business and careers. Unemployment is down to 5.5%, household incomes are growing, and the cost of living is 11% below the national average.
Key Quality of Life Stats:
- University Circle in Downtown Cleveland is home to the city’s cultural, educational, and medical institutions including the Cleveland Museum of Natural History, Case Western Reserve University, and University Hospitals.
- I.M. Pei designed the Rock and Roll Hall of Fame, located along the Lake Erie waterfront, near other popular attractions like the World War II submarine USS Cod and the Great Lakes Science Center.
- The Red Line Rapid Train is known as one of the best mass transit systems in the country.
- Cleveland Clinic and University Hospitals are renowned for their world-class healthcare services.
- Neighborhoods on the east side and west side of Cleveland feature a wide variety of housing options including historic homes, condos, and apartments.
Get out the map
Where to begin your search? Roofstock created a heat map of Cleveland based on our Neighborhood Rating, a dynamic algorithm that enables you to make informed investment decisions by measuring school district quality, home values, employment rates, income levels and other vital investment criteria.
DARK GREEN: 4-5 star neighborhood
LIGHT GREEN: 3.5-4 star neighborhood
YELLOW: 2.5-3 star neighborhood
ORANGE: 2 star neighborhood
RED: 1 star neighborhood
Ready to invest in the Cleveland housing market? If you haven't already done so, create your free Roofstock account and set up alerts. We'll notify you when we have a Cleveland investment property that matches your search criteria.
FAQs
Cleveland Home Prices and Trends
Additionally, the median sale price of all home types in Cleveland was $98,800 in 2021, compared to $80K in 2023. While this shows a significant increase in median sale price from 2021 to 2023, it is still 75% lower than the national average.
How is the real estate market in Cleveland Ohio? ›
Cleveland, OH Housing Market
The median listing home price in Cleveland, OH was $112.5K in April 2023, trending down -5.1% year-over-year. The median listing home price per square foot was $77. The median home sold price was $129K.
Is Cleveland real estate growing? ›
Cleveland came in second place just behind Charlotte, North Carolina. The factors behind Zillow's rankings include expected home value growth, projected change in owner-occupied households and job growth compared to new construction.
What is the appreciation rate for houses in Cleveland? ›
The average Cleveland home value is $101,211, up 2.6% over the past year and goes to pending in around 11 days.
Will 2023 be a good time to buy a house? ›
Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.
Will my house be worth more in 2023? ›
Zillow's forecast reveals a positive outlook for home values in 2023. The company expects a significant increase in home values compared to the previous month's forecast. Specifically, Zillow projects that home values will grow by 3.9% in 2023, indicating a considerable surge.
Is Cleveland up and coming? ›
Today, it is on an upswing with more people than ever looking to move back into a neighborhood and back to urban Cleveland living. In fact, some of its suburbs are losing residents to the big city. Some neighborhoods are seeing more development and growth than others, though.
Are home prices dropping in Ohio? ›
According to Zillow's data through March 31, 2023, the average home value in Ohio is $205,800, which is up 6.9% over the past year.
What is the economic outlook for Cleveland Ohio? ›
The Cleveland region, which spans five counties in northeast Ohio, will have 123,000 new jobs overall by 2025, and food manufacturing will play a big role in that growth. That sector is responsible for $2.6 billion in annual local economic activity, and the reason for that success is twofold, Duritsky said.
Will house prices go down in 2023 Ohio? ›
Cincinnati has a good supply of single-family homes valued at less than $300,000, and the median sales price for 2022 was over $228,000. For 2023, data from the Cincinnati Business Courier suggested that home prices will climb by over 6%, and Realtor.com projects sales growth of 3%.
The metro area population of Cleveland in 2022 was 1,761,000, a 0.06% increase from 2021. The metro area population of Cleveland in 2021 was 1,760,000, a 0.17% decline from 2020.
Is it worth moving to Cleveland? ›
Located in the Midwestern United States on Lake Erie, Cleveland is a good place to live for anyone who desires a diverse urban area for settling down. Without having to over-extend financially to afford a big city lifestyle. The downtown and surrounding neighborhoods are quite livable.
Why is real estate so cheap in Cleveland? ›
Still, there is no question that homes in Ohio are more affordable than those in many states. Much of that is due to geography, Kolko says. “Cleveland is next to the lake, but most of Ohio isn't up against water and isn't mountainous, so you can build out in all directions,” he says.
What is the average household income in Cleveland Ohio? ›
Do cheaper houses appreciate more? ›
While getting ahead is an uphill battle for many Americans, buying a starter home can be a big step in the right direction. That's because the least expensive homes have seen the largest percentage jumps in value, a trend that is apparent after a year and even more after five, an analysis by Zillow found.
Will mortgage rates go down in 2024? ›
Fannie Mae, Mortgage Bankers Association and National Association of Realtors expect mortgage rates to drop through the first quarter of 2024, by half a percentage point to about nine-tenths of a percentage point. Figures are the predicted quarterly average rates for the 30-year fixed-rate mortgage.
What will interest rates be in 2023? ›
Mortgage rate predictions for 2023
| Housing Authority | 30-Year Mortgage Rate Forecast (Q2 2023) |
|---|
| National Association of Home Builders | 6.36% |
| Fannie Mae | 6.40% |
| Mortgage Bankers Association | 6.40% |
| Average Prediction | 6.35% |
2 more rowsCleveland's DETROIT SHOREWAY has been going through gentrification and seeing many longtime residents forced out. However, an area near the West 65th-Lorain Avenue RTA station renamed Cleveland EcoVillage has become a project proven to revitalize the area in an inclusive way.
Is Cleveland a shrinking city? ›
Population: Cleveland's population has been declining since the 1950s. Thirty-two other U.S. cities are now larger than Cleveland, once the fifth largest city in America, though the pace of loss slowed considerably in the 1990s.
When was Cleveland booming? ›
The Roaring Twenties was a prosperous decade for Cleveland. By 1920, the year in which the Cleveland Indians won their first World Series championship, Cleveland had grown into a densely-populated metropolis of 796,841 with a foreign-born population of 30%, making it the fifth largest city in the nation.
Steep rent increases in recent years have fallen especially hard on the lowest income Ohioans. The shortage of affordable and available housing has grown 6% worse since the 2022 Gap report was released a year earlier.
Is the housing market slowing down Ohio? ›
In part thanks to rising interest rates, potential sellers have become more cautious, slowing the pace of the Central Ohio real estate market. New listings were down by 9 percent from the end of 2021 to the end of 2022, according to the Columbus Board of Realtors.
What is considered wealthy in Cleveland Ohio? ›
Lowest Income to be Considered "Rich" (Top 20%): $101,704. Average Income of the Top 20%: $165,341. Average Income of the Top 5%: $278,699.
What industry is left in Cleveland? ›
The economy of Greater Cleveland is diverse, but is based on healthcare, banking, finance, education, insurance, manufacturing, sports, and tech.
What is the biggest industry in Cleveland? ›
Retail and healthcare are among the most popular industries in the United States in general, but Ohio has manufacturing as one of its top three industries largely thanks to Greater Cleveland - home to nearly 23% of manufacturing jobs in the state. One of its main exports is industrial machinery.
When did Cleveland start to decline? ›
The Greater Cleveland area's population had more than doubled between 1940 and 1960, but grew only from 2.7 to 3.3 million in the next 20 years--and actually declined by nearly 300,000 between 1970 and 1990.
Why is Cleveland so spread out? ›
Since the 1970s, the regional population has shrunk while housing and jobs have spread outward — a combination that has devastated urban areas in particular. Transportation policy is a big part of the problem. Northeast Ohio keeps widening highways, facilitating quick suburban commutes and fueling sprawl.
Is Cleveland a good city to retire to? ›
Cleveland is among the 100 best cities in the United States to retire in 2021, according to new rankings released Tuesday by U.S. News & World Report. The new list evaluates the country's 150 most populous metropolitan areas based on how well they meet Americans' expectations for retirement.
What is a good salary to live in Cleveland Ohio? ›
Living Wage Calculation for Cuyahoga County, Ohio
| 1 ADULT | 2 ADULTS (BOTH WORKING) |
|---|
| 0 Children | 2 Children |
|---|
| Living Wage | $15.61 | $25.29 |
| Poverty Wage | $6.53 | $6.67 |
| Minimum Wage | $10.10 | $10.10 |
Cleveland is a more affordable place to live than Columbus.
Cleveland has a Cost of Living Index of (COLI) 27.7% lower than the national average, whereas Columbus is only 13.6% lower than the national average.
The 13 Best Areas to Live Surrounding Cleveland, Ohio
- Lakewood. Lakewood is located just west of Cleveland and about 24 minutes by car if you're looking for a vibrant and lively community. ...
- Rocky River. ...
- Beachwood. ...
- Highland Heights. ...
- Avon Lake. ...
- Bay Village. ...
- Chagrin Falls. ...
- Mayfield Heights.
Straddling Cuyahoga and Geauga counties, Hunting Valley is reported to be the most expensive among the Cleveland suburbs. The village is located in Greater Cleveland's East Side, about 25 miles away from Downtown Cleveland. Hunting Valley was incorporated back in 1924 and today comprises about eight square miles.
Are property taxes high in Cleveland? ›
CLEVELAND, Ohio - Property tax rates vary widely in the seven-county region that makes up Greater Cleveland, from close to $4,000 a year per $100,000 of home value in some eastern suburbs of Cleveland to less than half of that in several townships that don't provide many of the same services as cities.
Is it cheaper to live in Florida or Ohio? ›
Lower Cost of Living
On the state level, Ohio beats Florida for lower costs in every category but transportation. The average median household income is similar in both states, with Ohio's at $58,642 and Florida's at $59,227.
What is the top 1% income in Cleveland? ›
An annual income of $412,919 puts you in the top 1% of earners in...
- The Center Square.
- Oct 15, 2020.
- Oct 15, 2020.
As of May 25, 2023, the average annual pay for the Upper Class jobs category in Ohio is $50,642 a year. Just in case you need a simple salary calculator, that works out to be approximately $24.35 an hour. This is the equivalent of $973/week or $4,220/month.
What devalues a house the most? ›
8 things that will devalue your home
- It's important to every homeowner that their property retains its value. ...
- 1) Poor workmanship. ...
- 2) An increase in crime levels. ...
- 3) A substandard kitchen. ...
- 4) Noise pollution. ...
- 5) Uninspiring exterior. ...
- 6) How silent are the neighbours? ...
- 7) Not energy efficient enough.
Upgrades that add physical square footage or make the home feel more spacious
- Convert or build a home office. ...
- Finish your basem*nt. ...
- Open up the floor plan. ...
- Add stone veneer to the front of your house. ...
- Get a door of steel. ...
- Replace your garage door. ...
- Update your mailbox and house numbers. ...
- Touch up or re-do your exterior paint.
Smaller homes are less expensive to purchase and less expensive to keep (insurance, taxes, heating, cooling, electricity, etc.) 4. Living small means you go into less debt and less risk.
Is the cost of living high in Cleveland? ›
The cost of living in Cleveland, OH is 5% higher than the state average and 6% lower than the national average. Cleveland, OH housing is 17% cheaper than the U.S average, while utilities are about 2% less pricey.
It's all supply and demand. Ohio's population has been pretty static for the past 40 years while people have continued to build houses in the cities, so if you don't particularly care where you live it's possible to get a real bargain. That said, it's possible to get cheap housing in every state in the union.
Is Ohio a good state for real estate investing? ›
All in all, there are definitely great opportunities for cash flow and appreciation throughout the state, particularly in areas that are growing in population and jobs. Even in the largest Ohio cities, you can find affordable housing and a relatively low cost of living.
Is Ohio in seller's market right now? ›
It is currently a seller's market in Ohio.
What is the wealthiest suburb of Cleveland? ›
That includes Hunting Valley, which has been No. 1 on this list by estimated median household income since we started producing it in 2016.
Is Cleveland a good place to retire? ›
In terms of health care, the city has plenty of home-care facilities for the elderly.” Akron, Columbus, Cleveland and Toledo all made the list of top retirement cities.
What state has the best ROI for houses? ›
Investors probably need no explanation why and convincing that Florida tops the list of the best states for the long term rental investment strategy. Our nationwide rental market analysis shows that, on average, you can expect the highest rate of return in the Sunshine State.
Which state has the best real estate prices? ›
West Virginia
West Virginia tops the list of the least expensive homes in the country. With an average price of just $98 per square foot and listings selling for an average of $140,000, that home along one of the state's scenic highways may be more affordable than you thought. A property tax rate of just .
What state has the highest ROI 2023? ›
The state with the highest one-year ROI on residential single-family homes is Arizona with 27.42 percent, according to iPropertyManagement data. The next two highest states are Utah with 27.05 percent and Idaho with 27.02 percent.
