Cleveland Real Estate Market 2019

Cleveland Real Estate Market 2019

Cleveland Real Estate MArket 2019Cleveland has managed to reinvent itself by shifting from classic manufacturing to biotech and medicine. In the process, it has maintained its population and has strong potential for growth both economically and demographically.  Cleveland is an exception to the decline of the so-called Rust Belt cities.

Cleveland offers great opportunities for investors, especially for those looking for an affordable investment, solid monthly cash flow, and consistent equity growth, without too much risk.   Cleveland real estate market is more stable than other real estate market and that it offers investors long term income opportunities.  In January 2012 median rent of 3 bedroom homes in Cleveland was $1,068.  This means that, in the last 6 years (Jan 2012 to Jan 2018), rents have risen by almost 8%. During the same period, a 3-bedroom home rents increased by 17% nationwide.

Although the median rent of 3-bedroom homes in Cleveland has risen less than the national average, there is still an opportunity to increase your rental income at a steady rate – for example, over the last 6 years, the annual rental growth rate has been 1.27%.  This only shows that there’s an opportunity to generate passive monthly cash flow in Cleveland real estate market, and a higher rent-to-purchase ratio than the national average projected for 2019.

Cleveland real estate market is growing.  The last few years have been strong for the industry, there has been significant demand for investment property from large institutional investors and small private investors alike.  One factor contributing to this growth is the University Circle which is one of the hottest neighborhoods in Cleveland. It is seeing a wave of high-end condos and apartments. If you can find single family rentals or multi-family housing in the vicinity, snap it up. These are among the most desirable properties in the Cleveland housing market for 2019.

While Cleveland is redeveloping its long waterfront district, the fifty-year plan has already resulted in mixed-use development between West 3rd and East 18th streets. Redevelopment includes rehabilitating waterfront infrastructure like bridges, canals and “made land”. Reinvented lakeside trails create desirable areas that will command a premium on the Cleveland real estate market for the year 2019.

With a positive demographic trend, Cleveland real estate market thus bolstered by steady to slow growth.  Though specific neighborhoods are seeing spikes in their valuations, new employers and attractions are moving in.  This is another indication that Cleveland is more stable than other real estate market and that it offers investors long term income opportunities.

After the best sales year in a decade in 2017 for Cleveland real estate market, home sales are on track for a mild year-over-year decline in 2018, which is likely to extend into 2019 with a 2.0 percent decline. Although long-term desire to own a home remains strong, especially among younger Gen-Z and millennials, the real estate market challenges that make owning a home difficult continue to keep out first-time buyers, locking them out not only of their home but also of the wealth by equity generation that owning provides.

Finally, the housing market in 2019 will be characterized by continued rising mortgage rates and surging millennial demand. Rising rates, by making housing less affordable, will likely deter certain potential homebuyers from the market.  On the other hand, the largest cohort of millennials will be turning 29 next year, entering peak household formation and home-buying age, and contributing to the increase in first-time buyer demand.

For more information on Cleveland real estate market, you may call CPD Homes at 216-282-4332 and we’ll be more than willing to assist you.

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