In the real estate arena, Cleveland is considered the proverbial “hot market.” It is a city founded on a rich cultural heritage and benefiting from a rebound economy. It is home to the beloved Cleveland Browns NFL franchise, the Rock and Roll Hall of Fame, and a local population who takes great pride in their homes.
In 2023, the Cleveland housing market has become one of low housing inventory and high demand. Those are the exact conditions that make a seller’s market. What has caused this shift? It is the influx of new residents from the Midwest and Southern states that are pouring into
Cleveland to capitalize on various job opportunities and look for a terrific place to call home.
All those new residents need a place to live. That means there is a low inventory of homes for sale in Cleveland. And when the demand for homes in Cleveland is high, it creates a seller’s market.
Median Home Prices in Cleveland
According to leading online real estate service Rocket Homes, the median home price in Cleveland is $141,128 as of August 2023. That represents a significant boost of 22% from last year’s median home price.
As with every other major metropolitan city, Cleveland is a patchwork of distinct neighborhoods, each with their charm and amenities. In terms of price, online home search engine Redfin finds the median home price in Slavic Village stands at $72,000. That means Slavic Village is the most affordable neighborhood in Cleveland.
At the other end of the housing price scale, you’ll find that Tremont is the most expensive neighborhood in Cleveland, where the median home price is $435,000. In between, there is a wonderful array of neighborhoods to explore.
You’ll better understand the scope of the housing market when you compare the median home price for the various neighborhoods as provided by national online real estate firm Realtor:
- Old Brooklyn: $159,300
- Glenville: $104,500
- Kamm’s Corner: $235,000
- Edgewater: $194,900
- Buckeye-Shaker: $185,000
- Jefferson: $144,500
To understand what entering the Cleveland housing market might be like for a new buyer, you should take into account the asking price versus the sold price. According to Rocket Homes, in August of 2023, 328 homes were sold under asking, 117 homes were sold at asking, and a whopping 358 homes were sold over the asking price.
That means you should prepare to come in with an offer on a house that is over the asking price for your offer to be seriously considered by the property owner. At the very least, be ready to counteroffer on the home that checks off all the boxes on your “must have” list.
Trends in the Cleveland Housing Market
In many real estate markets across the country, millennials are buying homes in Cleveland. The influx of this demographic segment illustrates how the Cleveland housing market is changing. All those millennials are driving up demand for homes and making the properties that go onto the market scooped up quickly.
A prospective buyer entering Cleveland’s housing market needs to act fast. That is more true today than a year ago. Rocket Homes says the average sale time for a Cleveland home is 32 days. Last year, homes sat on the market for 42 days before being sold.
Getting pre-approved for a mortgage can put you into a stronger buying position. It demonstrates to the homeowner that you are ready to buy and that the escrow won’t have any complications. That is the kind of edge that can put you at the top of a potential bidding war.
The Rental Option
As an investor in the Cleveland real estate market, you’ll want to consider the rental property option. That is a viable type of investment that sets up a consistent revenue stream. According to the online rental agent Zumper, 58% of Cleveland residents are in renter-occupied households. The remaining 42% are in owner-occupied households.
The median rent is $1,305. That represents a 6% increase year over year. A few well-placed investments in the development of Cleveland rental properties can be the start of an impressive real estate portfolio.
Is It a Good Time to Buy a House in Cleveland?
The answer to that question can be found by looking closely at several factors. It starts with your budget. While the Cleveland housing market is currently favorable to sellers, you don’t want to buy a home that will stretch your budget.
Another crucial consideration is your long-term plans. Are you in a job with a solid future for stability? Do you see yourself as putting down roots in Cleveland for decades? Cleveland’s many neighborhoods serve up an array of housing options.
You might find there are “up-and-coming” neighborhoods that are poised for growth in terms of amenities like schools and businesses.
Cleveland has many great neighborhoods to explore, starting with Rocky River. That is a neighborhood situation along the shores of Lake Erie. You’ll find tranquil tree-lined streets populated with Victorian and Colonial-style homes. Rocky River also boasts a well-renowned school system that includes the Rocky River High School and Kensington Intermediate School. There are hiking trails through wetlands, meadows, and other scenic areas for outdoor enthusiasts.
You’ll find more waterfront vistas in the Tremont neighborhood. You’ll also see plenty of cozy apartments along with charming Victorian homes. That makes Tremont a good place for those rental investments. Tremont has a thriving local business community with a bustling restaurant scene. Tremont families send their kids to the Tremont Montessori or Scranton Elementary.
Travel six miles west of downtown Cleveland along Lake Erie’s shoreline, and you’ll come upon Lakewood. That is a community that has become a popular choice for families, singles, millennials, and young professionals. This energetic neighborhood offers a walkable and affordable lifestyle with many parks, backyards, and wide sidewalks. Lakewood is known for its dense population and vibrant atmosphere, featuring a variety of restaurants and bars.
Ohio City, nestled against downtown Cleveland along the Cuyahoga River, has experienced significant growth, especially with the development of the market district on W. 25th Street. Young professionals are flocking to this area known for craft beer and top-notch dining options.
Over a century old, the West Side Market offers a diverse range of fresh produce and crafts from local businesses. Historic homes and modern apartment buildings coexist in this bustling neighborhood.
Detroit-Shoreway, with its burgeoning arts district in Gordon Square, has become a hub for millennials and young professionals. The addition of luxury condos in the Battery Park development complements the neighborhood’s historic charm. Character-rich older homes and recent developments like Battery Park and EcoVillage provide this vibrant neighborhood with a wide range of housing options.
You also have to consider your personal timeline. Do you need to move into a home within a specific window, or are you flexible? Entering a seller’s market means you must brace for the potential of making multiple offers before landing your version of a dream home.
Why Cleveland Is a Great Choice
Do you need more convincing for why Cleveland is a great choice to call home? Once you get beyond the numbers, you’ll want to consider the quality of life that Cleveland offers its residents.
Cost of Living
Start with the cost of living. The compensation management platform Payscale finds that the cost of living in Cleveland is 6% below the national average.
If you were moving from California, you would find that the cost of living dropped by an impressive 37.7%, and housing costs would be down 65.5%. Imagine what you could do with all that extra money in your bank account. The affordability of Cleveland is a major draw for homebuyers.
Standard Home Features
As you begin to explore the individual homes in Cleveland, you’ll start to notice some standard features such as expansive backyards, finished basements, and updated kitchens and bathrooms. The COVID-19 remodeling trends did not pass over Cleveland.
Bustling Economy
Cleveland was hit hard by the economic downturn following the housing market crisis of 2008, but it has come back in a big way. The City of Cleveland Economic Development keeps track of Cleveland’s economic success story. The agency is proud to point out that in the last 12 years, the city invested over $430 million into the business and real estate communities.
Cleveland is also home to manufacturing centers, technology, financial services, and life science industries. Sherwin-Williams, Parker Hannifin, KeyBank, Dell, and Dupont are among the Fortune 500 companies with their main headquarters in Cleveland. Those companies are always looking to expand their roster of qualified staff members.
Young Population
At last count, Cleveland’s population was around 360,040. That puts it below Columbus and above Cincinnati. While neighboring cities like Detroit have seen a decline in population, Cleveland is making slow and steady projects with a young population that is eager to add to Cleveland’s cultural scene.
Calling Cleveland Home
A look into Cleveland’s housing market in 2023 presents a property landscape brimming with promise and potential. That promise is driven by a favorable cost of living, diverse economic opportunities, and a steady population bolstered by a youthful demographic. Moreover, the surge in demand for homes in Cleveland has transformed it into a seller’s market.
Making a well-informed decision is critical for homebuyers and sellers. For a family considering a move to Cleveland, carefully assessing your budget, preferences, and long-term plans is essential. With lower housing costs than other larger metropolitan cities, Cleveland presents an enticing opportunity for buyers.
Sellers who capitalize on Cleveland’s current market trends can expect to build up a decent nest egg for their retirement or to put towards purchasing the next home. The rental market remains a lucrative option for investors, given the city’s stable demand for rental properties.
Cleveland’s real estate market in 2023 is a compelling mix of affordability, growth potential, and economic opportunities. That makes it a great “big, little” town to call home.
