When Carlos Slim Helu said, “With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future,” he was talking about an article such as this that brings you into the knowledge of the Ohio housing market.
Investment is an intentional endeavor, so in this post, we will show you important reasons why you should invest in Ohio real estate, including Airbnb Ohio rentals as well traditional rental properties.
Afterwards, we will take a look at the best places to invest in Ohio in 2021, defined as the cities which offer the highest return on investment for short-term and long-term rental properties.
Overview of the Ohio Real Estate Market 2021
The United States housing market is blessed with a vast range of investment opportunities, and amongst these is Ohio, the seventh most populous state in the country. The population drives the real estate market, which is exactly why you should invest in Ohio real estate. Moreover, the state is located in the Midwest, sitting perfectly amidst aesthetic landscape, gorgeous cloud lines, and blue skies. All in all, Ohioans benefit from a low cost of living, decent colleges, and a wide range of outdoor opportunities and attractions in cool towns, making it one of the best states in America to invest in property as demand is high.
The Rock and Roll Hall of Fame, the National Museum of the United States Air Force, Cedar Point Amusement Park, Hocking Hills State Park, Amish Country, Columbus Zoo and Aquarium, Cincinnati Museum Center, Franklin Park Conservatory, and Botanical Gardens are all located in Ohio. People come to Ohio because of its history and archived stories, creating a market for Airbnb Ohio.
Read More: Is Owning an Airbnb Property a Smart Investment Strategy Amid the Global Pandemic?
Ohio is the state with the seventh-largest economy in the United States. It is the largest producer of rubber, fabricated metal, and plastic. Ambitious immigrants from around the world and across the US come to the state, looking for Ohio homes for sale, so they can chase a career in the finance and manufacturing industry.
That is not all. Ohio has unbeaten prestige. It has produced seven US presidents. In 1865, Cincinnati became the first city to have an ambulance service. It is the first state to enact legislation to protect working women. Ohio has a lot to sell to sports fans as well. The NFL’s Cleveland Browns, the NBA’s Cleveland Cavaliers, and the Ohio State Buckeyes are among the state’s sports teams.
All these factors come together to make the Ohio housing market 2021 one of the hottest destinations for real estate investors.
The Ohio Housing Market Crash During the COVID-19 Pandemic
It is no news that COVID-19 crippled economies; millions got broke and went bankrupt. Businesses closed down. It didn’t leave Ohio out, as nearly 900,000 Ohioans lost their jobs when the pandemic struck. Since then, the state has been able to reclaim about half of those workers. Leisure and hospitality, commerce, transportation and services, and health and education, respectively, are the industries that are adding the most employment.
Following a long-term trend, the population is increasing in general, particularly in larger cities. This suggests that businesses are actively reopening, and employers are currently taking workers to meet their market demand and financial goals. It also suggests that people are moving in, searching for jobs, and correspondingly, searching for Ohio homes for sale. Ohio has a large and diverse job market, low housing costs, and a low cost of living.
Despite the negative impact of the pandemic, the Ohio housing market didn’t crash. While other U.S. cities experienced a drop in home prices, Ohio cities saw an increase in value. This is evidence of how resilient the market is, which makes it a great location for investors.
Are you still searching for more reasons to invest in Ohio rental property? Here’s everything you need to know about why we are all gassed up about putting funds in the Ohio housing market in 2021.
Everyone Is Moving to Ohio
From the lush beauty, its serene and calm cities, the nightlife, the bright mornings, and the history, there is a variety of reasons why everyone is tending towards the Midwestern giant state. Ohio has a population of 11.8 million people, which has increased at a steady rate of 1.81% in the last ten years.
As a result, some cities in the Ohio housing market (like Springfield) are the most competitive real estate markets, according to MillionAcres. So, for you as a real estate investor, a growing population like Ohio is a promising target market. It means there’ll be higher rental demand than other locations where there aren’t a lot of people.
A Booming Job Market Is Everyone’s Future Home
Ohio’s economy is one of the largest economies in the U.S. For context, there are 25 Fortune 500 companies spread across the state, as well as 338 colleges and universities. Ohio is home to Walmart, Cleveland Clinic, and Kroger, which are among the state’s biggest employers. The healthcare industry is a large employer of skilled and unskilled workers, providing jobs for many people. Mercy Health, OhioHealth, Cincinnati Children’s Hospital, and University Hospitals, among others, are giants in the blossoming health sector in Ohio.
Because Ohio has a fertile landscape for business and the job market in general, the state ranked #9 among America’s best states for business in 2020. It has some of the best infrastructures in the world and favorable policies that allow businesses to thrive, including the low costs of running businesses.
Read More: Job Growth and Its Effects on the US Housing Market
Incredibly Cheap Housing Is Ohio’s Bull Horn
The question most people ask about the city is, “Why are homes in Ohio so cheap?” Based on Mashvisor’s real estate data analysis the median property price in Ohio is lower than in lots of the states in the U.S. So, investors are tapping into the chance to Ohio real estate investment.
People come to Ohio for a variety of reasons, including affordability and a low cost of living. Also because you don’t have to invest in places like the Cleveland housing market of this world to get great returns on your investment. There are other cities in the state that most Ohioans will swear by when it comes to renting or buying a house, while still enjoying the best that the environment has to offer. All these factors make many different locations the best real estate investment opportunities for investors, depending on their budget, preferred rental strategy, and other criteria.
Read More: 3 Tools for Finding Profitable Cheap Houses for Sale
Best Cities in Ohio for Traditional Rental Investment
While they may not be as profitable as Airbnb rentals, investors can still find profitable deals on traditional rentals in the Ohio housing market, especially in areas where good schools are present.
Based on Mashvisor’s real estate data, here are some of the best places for traditional rental investment in Ohio.
Loveland
- Median Property Price: $339,607
- Price per Square Foot: $166
- Price to Rent Ratio: 16%
- Monthly Traditional Rental Income: $1,749
- Traditional Cash on Cash Return: 4.05%
Dayton
- Median Property Price: $208,861
- Price per Square Foot: $126
- Price to Rent Ratio: 16%
- Monthly Traditional Rental Income: $1,080
- Traditional Cash on Cash Return: 3.62%
Cleveland
- Median Property Price: $195,067
- Price per Square Foot: $125
- Price to Rent Ratio: 16%
- Monthly Traditional Rental Income: $999
- Traditional Cash on Cash Return: 3.36%
Cincinnati
- Median Property Price: $368,341
- Price per Square Foot: $179
- Price to Rent Ratio: 24%
- Monthly Traditional Rental Income: $1297
- Traditional Cash on Cash Return: 2.00%
Best Cities for Airbnb Ohio Investment Properties
Ohio real estate market analysis conducted by Mashvisor reveals that Airbnb rentals are the more profitable real estate investments in the Ohio housing market in 2021. With this in mind, we have gathered the best cities to invest in.
Toledo
- Median Property Price: $101,666
- Price per Square Foot: $87
- Airbnb Listings: 244
- Monthly Airbnb Rental Income: $1,670
- Average Airbnb Cash on Cash Return: 7.04%
- Average Airbnb Occupancy Rate: 60%
Akron
- Median Property Price: $160,083
- Price per Square Foot: $105
- Airbnb Listings: 234
- Monthly Airbnb Rental Income: $1,822
- Average Airbnb Cash on Cash Return: 6.12%
- Average Airbnb Occupancy Rate: 60%
Canton
- Median Property Price: $207,431
- Price per Square Foot: $119
- Airbnb Listings: 161
- Monthly Airbnb Rental Income: $2,239
- Average Airbnb Cash on Cash Return: 5.70%
- Average Airbnb Occupancy Rate: 63%
Shaker Heights
- Median Property Price: $287,480
- Price per Square Foot: $138
- Airbnb Listings: 133
- Monthly Airbnb Rental Income: $2,946
- Average Airbnb Cash on Cash Return: 4.51%
- Average Airbnb Occupancy Rate: 60%
Columbus
- Median Property Price: $289,524
- Price per Square Foot: $176
- Airbnb Listings: 6724
- Monthly Airbnb Rental Income: $1974
- Average Airbnb Cash on Cash Return: 3.65%
- Average Airbnb Occupancy Rate: 59%
Read More: 4 Key Airbnb Investment Metrics You Should Know
Is Airbnb Legal in Ohio?
Generally, all businesses (including short-term rentals) in Ohio must register their business with the Ohio Secretary of State after which a valid operational license will be issued. However, different cities within the Ohio housing market have their own short-term rental laws and regulations.
For example, Cleveland charges a 3% Transient Occupancy Tax (TOT) on hotel operators that provide guest accommodations for less than 30 straight days. As an Airbnb host in Cleveland, you should review Cleveland’s Municipal Code to find out if this applies to you.
In Columbus, you need a short-term rental permit if you will be hosting short-term accommodations for less than 30 nights. Only hotels, motels, and long-term stay listings of more than 30+ nights at a time do not need to apply for this.
Cincinnati also requires that every host registers short-term rentals with the city before resuming activities. This includes a registration fee of $250 for a permit which covers three years from the date of issuance.
The bottom line is that you should always review each city’s Airbnb law in the Ohio housing market as they may vary and require different processes to set up.
What Are You Waiting For? Buy Your Ohio Airbnb Property Now
Ohio is home to many cities with unique housing markets. For instance, investing in the Cleveland housing market is quite a different proposition from investing in the Columbus housing market. The demand for housing is influenced by factors such as the economy, unemployment rate, home prices, and other factors, all of which impact how much money you make from your investment.
This is why you need to gain insight from holistic investment heat maps and property calculator tools like Mashvisor when entering a new market. It can help you gain insight, get access to data that will guide your investment into profit, and receive expert guidance on the current state of the Ohio housing market.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.