Cleveland Real Estate Market 2021

Cleveland Real Estate Market Trends & Statistics 2021

In this section, you’ll learn about the top factors that make Cleveland one of the strongest real estate markets of 2021, including: job growth, population growth, and equity growth potential. Explore Cleveland’s housing market, population, and employment trends in the tabs to learn more.

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Data Sources:

• https://www.zillow.com/
• RealWealth Property Team Data
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/

Cleveland property values are more affordable than other U.S. markets today

• In 2020, the median price of average homes in Cleveland was $161,415. This is 37% lower than the national average of $254,000.
• In the neighborhoods where RealWealth members invest, the median price is only $120,000. This is 53% less than the average home nationwide.
• This shows us that real estate in Cleveland is uniquely affordable, especially in the neighborhoods where RealWealth members are investing.

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There’s an opportunity to generate strong monthly income in Cleveland.

• In 2020, the median monthly rent for average homes in Cleveland was $1,103, which is 0.68% of the purchase price of $161,415.
• In the neighborhoods where RealWealth members invest, the median monthly rent of R.E.A.L. Income Properties™ is $1,150, which is 0.96% of the purchase price of $120,000.
• This shows us that there’s an opportunity to generate passive monthly cash flow in Cleveland at higher rent-to-purchase ratio than the national average.

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Cleveland’s real estate market is more stable than many other U.S. markets today.

• In 2014, median price of average homes in Cleveland was $120,134. This means that, in the last 6 years (2014 to 2020), homes in Cleveland have appreciated by over 34%. During the same period, homes increased by 36% nationwide.
• Although the median price of homes in Cleveland has appreciated less than the national average, there is still equity to be made in Cleveland at a consistent rate. Over the last 6 years, the annual growth rate has been 5.05%.
• This shows us that Cleveland is a more stable real estate market that offers investors a long term opportunity for growth with less risk.

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Cleveland’s median monthly rental rates are lower than the national average, but continue to rise.

• In 2014, median rent of average homes in Cleveland was $1,103. This means that, in the last 6 years (2014 to 2020), rents have risen by more than 15%. During the same period, rent for average homes nationwide increased by 23% nationwide.
• Although the median rent of average 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 2.39%.
• This is another indication that Cleveland is more stable than other real estate market and that it offers investors long term income opportunities.

Cleveland’s overall population is declining, but there is significant growth among millennials.

• Between 2010 and 2020, Cleveland’s population declined by 0.19%. 
• Despite this slow decline, Cleveland outperforms many suburban areas of similar size in its attraction and concentration of educated millennials.
• A study, “The Fifth Migration: A Study of Cleveland Millennials,” reveals a 76% increase in college educated millennials (aged 25-34) between the years 2000 and 2012. As of 2012, 63% of Downtown Cleveland residents were millennials – compared to 20% in the Greater Cleveland metro area and 23% of the overall U.S. population.
• All of this data shows us that demand in Cleveland is still rising at a steady rate, despite their lower-than-average population and job growth over the last several years. Although this isn’t “ideal,” it’s still a good indication that Cleveland is growing, especially among millennials.
• This is significant because homeownership rates among millennials are at historic lows. According to an analysis of the Census’ Housing Vacancies and Homeownership surveys, in 1982 the percentage of young Midwestern adults under 35 who owned a home was 45.8%. In the year 2000, it rose to 47.7%. And by 2014, the rate dropped to 42.3%. Of course, this is good news for real estate estate investors looking to purchase rental property in the Cleveland metro area.

Cleveland is creating jobs at a slower rate than the national average.

• In the past year, there were 103,800 jobs lost in the Cleveland. metro due to COVID-19.  However, in a typical year, job growth is slowing rising, which means Cleveland still offers a stable economy.
• Job growth is a promising sign that shows us Cleveland is a strong real estate market. Why? Because jobs attract people and people need a place to live… in other words, job growth is a good indication of future population growth.

Cleveland is Affordable

• In the neighborhoods where RealWealth members invest, the median price is only $120,000. This is 53% less than the average home nationwide.
• This shows us that real estate in Cleveland is uniquely affordable, especially in the neighborhoods where RealWealth members are investing.

Cleveland is Cash Flowing

• In the neighborhoods where RealWealth members invest, the median monthly rent of R.E.A.L. Income Properties™ is $1,150, which is 0.96% of the purchase price of $120,000.
• This shows us that there’s an opportunity to generate passive monthly cash flow in Cleveland at higher rent-to-purchase ratio than the national average.

Cleveland is Home Values & Rents are Appreciating

• Although Cleveland home values and rents have risen less than the national average over the last 6 years, both have been rising consistently year after year.
• This is a good sign that Cleveland is a more stable real estate market that is not experiencing wild appreciation (and subsequent depreciation) swings.

Cleveland is in Demand

• Since 2010, Cleveland’s population declined by 1.30%. During the same period the national population grew by 6%.
• However, the number of millennials moving to Downtown Cleveland has grown at a record rate. More than 63% of Downtown Cleveland’s population is made up of millennials compared to only 23% nationwide.
• This is significant because homeownership rates among millennials are at historic lows, which means there is a growing demand for rental units in the Cleveland metro. And this is good for buy and hold investors.