By Luis Vieira | Bricksave
November 25, 2024
News > Blog Article > Everything you need to know: Cleveland
Cleveland is transforming into one of the hottest real estate investment destinations of late 2024. With its attractive combination of lower-than-average property prices, a growing economy, and a world-class healthcare system led by the pioneering Cleveland Clinic, the city is capturing the attention of investors and homeowners alike. This resurgence is creating a unique window of opportunity for those looking to secure their place in Cleveland’s bright future.
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Cleveland’s economic resilience and adaptability make it a standout choice for investors. The city is a top U.S. hub for general-purpose machinery production, a vital contributor to its manufacturing-driven economy. Greater Cleveland is also home to major Fortune 500 companies like The Progressive Corporation (55th), Sherwin-Williams (176th), Cleveland-Cliffs (185th) and Goodyear Tire & Rubber (204th in 2023), cementing its position as a corporate powerhouse.
Cleveland’s metropolitan area is experiencing population growth, fueled by an influx of professionals drawn to its job opportunities and affordable cost of living. The metro area’s 2022 GDP of $138.26 billion—20% of Ohio’s total GDP—underscores its economic clout. For context , this is higher than the GDP of entire nations like Morocco and Luxembourg and double that of Uruguay. As revitalization efforts continue, this growing population will increase demand for housing, driving prices higher and offering robust returns for investors.
Cleveland’s world-renowned healthcare sector, led by the Cleveland Clinic, is at the forefront of global medical innovation. From performing the first coronary bypass to pioneering minimally invasive heart surgeries, Cleveland has solidified its reputation as a leader in medical advancements. This thriving sector supports nearly 20% of the city’s workforce, creating a stable foundation for economic growth.
Cleveland is a city of architectural diversity, where history and modernity blend seamlessly. From the classical Beaux-Arts grandeur of the Cleveland Public Library to the contemporary design of the Museum of Contemporary Art, Cleveland’s buildings tell the story of a city that honors its past while embracing the future. The city’s early architecture was marked by Federal and Greek Revival styles, influenced by the city's industrial rise. Over time, Cleveland evolved into a hub for architectural experimentation, exemplified by structures like the iconic Terminal Tower and the garden-city design of Shaker Heights.
As the city continues to grow, these rich architectural layers remain a key part of Cleveland’s urban identity. Today, the skyline features both preserved historic landmarks and cutting-edge designs, making it a city where heritage and innovation coexist harmoniously. For investors, this offers an opportunity to own a piece of history while also benefiting from Cleveland’s forward-thinking revitalization efforts.
Cleveland is experiencing a remarkable real estate renaissance, driven by a combination of rising property values, high rental demand, and a growing influx of investment. Over the past 8.5 years, the median price of single-family homes (SFH) has surged by an impressive 103%, effectively doubling since 2015, according to long-term home value trends reported by Zillow. This growth indicates a market poised for further appreciation, which makes Cleveland an exciting opportunity for investors looking for long-term returns.
The city’s real estate landscape is also showing signs of increased competition, with the median sale price per square foot currently sitting at $87—reflecting a year-on-year increase of 9.4%, based on Q3 2023 metrics from Redfin. With 38.9% of properties selling above the list price and a sale-to-list price ratio of 98.8%, Cleveland is proving to be a market where homes are highly sought after, and many buyers are willing to pay a premium. For investors, this indicates a healthy, competitive market with growing value potential, while buyers who can act quickly, especially cash investors, can still find opportunities for favorable deals.
Homes in Cleveland are selling faster than many other markets, with properties spending a median of just 29 days on the market (Redfin, 2023), which is far below the national average of 61 days (Marketplace Homes, 2024). This high demand further underscores the city’s appeal, suggesting both the strength of the local market and the rapid rate at which properties are being absorbed.
One of the standout features of Cleveland’s housing market is its rental market. The city’s homeownership rate stands at 40.9%, significantly lower than the national average of 65.7% (Data USA, 2024), which creates an inherent demand for rental properties. Cleveland’s relatively affordable rental market, with a median rent of $1,400 for single-family homes, is an attractive proposition for tenants. As rents have increased by 7% in the past year alone, it’s clear that the rental market is growing steadily.
For investors, this means a solid and reliable income stream, particularly as the homeownership rate remains relatively low, and demand for rental properties continues to rise. With rents expected to keep climbing, investing in Cleveland’s rental market offers a compelling opportunity to benefit from both appreciation in property values and ongoing rent growth.
Take a closer look at our investment opportunities in Cleveland
Cleveland is more than just a city on the rise; it’s a beacon of opportunity in the Midwest. The city’s unique blend of affordability, strong economic foundations, and cultural vibrancy make it an investment destination with untapped potential. With the housing market showing steady growth, neighborhoods undergoing revitalization, and a burgeoning economy driven by healthcare, manufacturing, and corporate giants, Cleveland offers an enviable mix of stability and upward momentum.
For investors, the city’s rental market provides consistent yields and appreciation opportunities, especially in high-demand areas like Tremont and Detroit-Shoreway. Homebuyers are equally drawn to the architectural charm and livability of neighborhoods like Shaker Heights. These factors, combined with the influx of new residents and out-of-state interest, signal a market poised for continued expansion.
However, this window of opportunity won’t last forever. As revitalization efforts progress and demand continues to rise, property prices are likely to follow suit. Delaying your decision to invest could mean missing out on the current affordability and high-growth potential Cleveland offers today.
The heart of America is returning to its former glory, and Cleveland is at the center of this resurgence. Don’t let this opportunity pass you by. Take the first step by exploring the city’s investment potential on our Cleveland investment page, and join those who are already capitalizing on this Midwest revival. Whether you’re an experienced investor or looking to enter the market for the first time, Cleveland is ready to reward your vision and commitment.
Start your journey now — Cleveland is waiting for you.
Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.
