The city has become a renowned world corporate center and a market for growth in the past four years. Cleveland is home to 27 universities, the second largest live theater district in the nation, Cleveland Clinic and the fastest growing healthcare industry in the US, some of the country’s major sports teams, and several national and multinational companies. No wonder Cleveland real estate market is also growing!
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Cleveland Real Estate Overview
Cleveland’s Economic conditions are optimistic. 2016 unemployment rate was reported at 4.7%, reduced from 5.6% just in 2015. Additionally, Ohio home sales are increasing in general, and Cleveland real estate has had a significantly strong November in 2016. Not only that, Cleveland is also displaying growing income and a stable and strong job market. And homes in Cleveland real estate have been regaining their value after the 2008 recession.
If you’re considering Cleveland real estate, take advantage of the fact that it’s currently a buyer’s market. Unlike many cities in the US, Cleveland has an abundance of housing stock an inventory. If you’re looking to invest in the long run, Cleveland real estate may be a good option. As prices soar in the rest of the nation, Cleveland real estate may very well become the next investor market.
Cleveland real estate is also attracting investors because it is among the most affordable markets when compared to the national average. The median home price in Cleveland is $199,880 which is certainly affordable. Plus, most of the city’s top neighborhoods depict great numbers in terms of CoC returns, cap rate, and estimated rental return.
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Airbnb Cleveland
Airbnb Cleveland is certainly one of the hottest Airbnb markets in the Midwest. The home-sharing service has undergone many regulations in 2016. Some legislations for Airbnb Ceveland were introdulced in January 2016. The city continued to regulate the service well into last year. Some of the changes Airbnb Cleveland has seen include:
- Updating Cleveland’s zoning code since the city used to have an outdated code. Cleveland used to identify a hotel as “a facility with at least five rooms”, a definition that has changed to accommodate today’s home sharing economy.
- Imposing a 3% transient-occupancy tax (TOT) taxt
- Imposing a 5.5% hotel tax, to be paid by the renters, and collected by Airbnb to turned over to the city
- That a home-sharing property, such as Airbnb, must be the host’s primary residence for over 51% of the year. Additionally, a host may not rent for over 91 days per year, with a 30 day maximum stay per guest. At the moment, Airbnb is trying to push the 91 day limit to 180 days.
The new taxes and regulations are not making hosts and investors too happy. City officials claim that they do not want investors purchasing homes solely for the purpose of renting them out on Airbnb. But if you’re considering Airbnb Cleveland, do not let this discourage you. Yes the city is imposing legislations, but so have most cities across the nation and even internationally. The bigger the service gets, the more regulations it requires. Airbnb is only growing and so are the opportunities associated with it.
Cleveland Real Estate Top Two Neighborhoods
University District
- Median Home Price: $132,475
- Airbnb Occupancy Rate: 32.125%
- Average Rental Income/month
- Airbnb: $1,227
- Traditional: $9,290
- Cash on Cash Return
- Airbnb: 6.14%
- Traditional: 82.67%
North Collinwood
- Median Home Price: $97,950
- Airbnb Occupancy Rate: 42.72%
- Average Rental Income/month
- Airbnb: $837
- Traditional: $2,032
- Cash on Cash Return
- Airbnb: 2.64%
- Traditional: 14.99%
Downtown
- Median Home Price: $256,000
- Airbnb Occupancy Rate: 45.4%
- Average Rental Income/month
- Airbnb: $2,585
- Traditional: $1,426
- Cash on Cash Return
- Airbnb: 7.72%
- Traditional: 1.92%
Tremont
- Median Home Price: $300,000
- Airbnb Occupancy Rate: 47.45%
- Average Rental Income/month
- Airbnb: $2,334
- Traditional: $1,174
- Cash on Cash Return
- Airbnb: 5.71%
- Traditional: 2.4%
Old Brooklyn
- Median Home Price: $92,450
- Airbnb Occupancy Rate: 49.28%
- Average Rental Income/month
- Airbnb: $2,473
- Traditional: $754
- Cash on Cash Return
- Airbnb: 23.26%
- Traditional: 2.86%
Make sure to use Mashisor’s multiple investment analytical tools to assess your investment opportunities in these neighborhoods, among others. You may also check out property comps in each distinct neighborhood and use those to optimize your investment in Cleveland real estate.
To Summarize on Cleveland Real Estate
While not among the strongest real estate markets in the nation, Cleveland real estate is certainly hopeful. If you’re on a budget, and you’re looking for a long term investment, definitely consider Cleveland real estate. And to make the most out of your investment, make sure to use our services when searching for real estate properties. Mashvisor offers information on multiple real estate indicators such as CoC return and estimated rental returns for traditional and Airbnb properties. Our service also allows you to browse thousands of properties and compare them in single neighborhoods or the city as a whole. Simply type in Cleveland into our search engine to browse multiple investing options in the Cleveland real estate to help you make calculated and savvy investing choices.
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