New life is being breathed into former desolate neighborhoods and, as they begin to flourish, property values there are likely to rise too. For instance, the Opportunity Corridor is being created in the southeastern part of the city in an area formerly referred to as the “Forgotten Triangle.” The new boulevard, being completed in phases through 2021, is intended to spur growth in the Slavic Village, Kinsman, Buckeye, and Fairfax neighborhoods, which have experienced long economic stagnation. City planners envision the creation of high-tech medical research centers, skilled jobs in advanced manufacturing, including jobs in retail along the corridor.
The new jobs this redevelopment brings will draw people and families who will look to buy homes that are conveniently located for getting to work, shopping, and entertainment. Besides creating new jobs, the Innovation Zone is creating a new atmosphere in the neighborhood and adding to its attractiveness for homebuyers. If you can find a distressed house for sale in this area, your investment is very likely to do well by your bank account.
New companies bring new people to the city and new money to the local economy, creating more prosperity that will enable and encourage people to buy houses. The city’s Health-Tech Corridor is attracting businesses like never before. Link59, the 62,000 square foot addition to the complex that opened earlier this year, was built on speculation, with no tenants lined up. Now it is nearly full, and development of the corridor is continuing.
The job market in Cleveland is already becoming tighter, which is good news for the real estate market because more people with jobs means more people who can afford better housing, or even become first-time home buyers. Manufacturing, trade, transportation and utilities, professional and business services, as well as leisure and hospitality were among the sectors with big gains. In the long term, healthcare is expected to become a major source of job growth, with 85,000 new jobs expected to be created between 2015 and 2025. Hot spots will be in the redevelopment areas around Cleveland in corridors that concentrate new businesses. Investment properties near these and other centers of activity are likely to find a bull market after renovation.
Cleveland’s economic progress is beginning to be felt in the reviving housing market. As of April, house prices were up 6.5% year-on-year. There have even been some months since mid-summer when sellers were getting more than their asking prices. Opportunities are not spread evenly, though. There are sections of the city where the price gain on houses considerably exceeds the average. This rising market only means things will get even better for returns as the year progresses.
Cleveland is becoming a nicer place to live, and this will also draw people to the city to buy houses. The Cleveland City Council voted in late 2017 to create the Superior Arts Improvement District to enhance the arts community with increased services. Redevelopment has converted historic factory buildings into studio, housing, and retail space, and property prices in the neighborhood are rising fast. These developments have improved the quality of life in the city, intangibly and significantly, which has encouraged people to move their businesses to Cleveland, and move here to work. That, in turn, has bolstered the real estate prices.
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