The sound of keys opening the door to your new Cleveland rental house is like music to your ears. You don't hear keys; you hear "ch-ching!" Welcome to becoming a landlord in America's North Coast.
Research shows that multiple Cleveland suburbs have shifted from having mostly homeowners to primarily renters. The number of renters in Warrensville Heights, East Cleveland, Euclid, and Bedford Heights has surpassed 50%. This means more money-making opportunities for the area's landlords.
What do you know about the real estate market in Cleveland, OH? Let's explore four important things to know about the market.
1. Cleveland Is Great For Entertainment
Cuyahoga County's Cleveland is among the best real estate markets since it's home to multiple natural and cultural attractions that have drawn renters and buyers. The city's residents love spending time at Lake Erie, the city's art museum, and its famous Rock Hall museum.
2. Cleveland Is Excellent For Economics
Cleveland's strong economic conditions are another reason to invest in the area. Let's examine the city's living costs and economic potential.
Living Costs and Salaries
Buyers and renters are flocking to Cleveland due to its low living cost, which is at least four percent lower than America's average. This helps make up for Cleveland's higher-than-average unemployment compared with the nation's average.
The US's unemployment rate in March 2023 was 3.5%. Greater Cleveland's jobless rate was 4.2% at that time.
How much do Cleveland residents earn? The city's average salary is also lower than the nation's average. Cleveland households make an average of more than $49,000.
This is sufficient for many families due to the area's low living cost. It's also enough given the area's lower housing costs (more on this next). The US's average household income is more than $97,000.
Economic Future
Cleveland is experiencing strong economic growth despite COVID-19. The city's economy depends on several sectors. These include:
- Finance
- Education
- Sports
- Manufacturing
- Health care
The city has also made several investments in healthcare and bioscience startups. This means Cleveland may become a significant source of future technological breakthroughs and new medications, further drawing renters and buyers to the area.
3. Real Estate in Cleveland Is Great for Sellers
Homes in the Cleveland area can sell for as high as $443,000 in Pepper Pike or $292,000 in Brecksville. Selling a house is a breeze in Cleveland since it's a seller's real estate market. Some homes are sold the day they're listed.
Cleveland homes also typically sell for their asking prices. The city's low housing supply benefits sellers by creating more buyer competition. Buyers can still benefit from the city's property market since they can depend on any home they buy in Cleveland to offer an excellent investment long-term.
4. Cleveland Is Great for Landlords
Cleveland's rental home market is growing, as mentioned earlier, making the city an excellent place for landlords. The city's average rent price in September 2023 was $775 monthly. That's more than 43% lower than America's median rent of $1,371.
We Can Help You in the Real Estate Market
The Cleveland real estate market offers great promise for landlords and home flippers. The city offers many cultural attractions and has a low living cost. Homes usually sell quickly there.
PMI Mountain Gateway can help you manage your Cleveland real estate with our high-quality property management services. We'll handle your rent collection, maintenance, and more. Partner with us today!
