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Understanding Ohio’s Real Estate Markets: A Deep Dive

May 21, 2024

by Evelyn Long, Renovated Magazine

Ohio’s real estate market has shown resilience and consistent growth in recent years. It boasts steady increases in home values and strong demand for housing. Major cities have experienced revitalization and economic expansion, drawing in new residents and businesses.

There are ample opportunities in urban and suburban areas, with the state’s diverse economy fostering a stable job market and fueling demand for housing. While inventory remains tight, especially in popular neighborhoods, creative strategies can help you uncover valuable investment opportunities. The continued growth of Ohio’s real estate market makes it a prime landscape for savvy agents to thrive in 2024.

Statewide Market Overview
Across Ohio, home prices continue to rise, with the average property now costing around $223,000. A robust economy drives this statewide trend, where steady job growth and an average household income of $66,990 sustain a healthy demand for housing. Its economic stability drives buyer interest and market confidence, particularly in thriving urban and suburban markets.

Additionally, recent legislation promoting affordable housing and new zoning regulations could open up new opportunities for first-time buyers and investors. It allows you to guide clients toward properties that offer long-term value and immediate appeal.

Market Performance in Major Cities
Ohio’s major cities shape the state’s real estate market with unique trends and opportunities. Understanding each city’s market performance can help you uncover growth areas and better navigate challenges specific to urban real estate.

Columbus stands out as one of the top smart cities in the U.S., incorporating smart sensors in transportation networks to streamline travel and make the city more accessible. Market strength lies in its booming tech industry and diversified economy. It fosters growth in the residential and commercial sectors.

The thriving housing market offers numerous opportunities, particularly in neighborhoods where tech professionals seek modern, smart-connected living spaces. However, challenges persist with tight inventory and increasing competition. Understanding the trends is crucial to staying ahead of the curve. You can leverage tech-driven strategies to help clients secure desirable properties.

In Cincinnati, the residential and commercial markets present unique trends and opportunities. The city’s blend of historic neighborhoods and modern developments builds the residential market. It offers a mix of affordable housing and upscale properties that attract a diverse range of buyers.

On the commercial side, ongoing revitalization efforts and a growing business sector drive demand for office spaces and retail locations. You can capitalize on these trends by guiding clients toward promising investments.

Whether it’s in the retail market, flipping properties, or tapping into the rising demand for mixed-use developments. Staying attuned to these shifts allows you to identify the right opportunities and help clients secure solid returns in this vibrant real estate market.

Cleveland’s revitalization efforts have sparked impressive growth in the local housing market, with home values surging by 23% yearly. This significant rise is primarily due to ambitious development projects and renewed interest in urban living, as previously neglected areas transform into vibrant neighborhoods.

Investment hotspots in emerging communities are rising, where trendy eateries, art venues and new housing developments attract buyers seeking modern, walkable lifestyles. Focusing on these neighborhoods and staying aware of ongoing revitalization projects can help clients uncover prime opportunities in Cleveland’s dynamic market.

Suburban and Rural Markets
Ohio’s suburban and rural markets offer diverse opportunities for agents to explore beyond the urban centers. These areas possess distinctive housing trends and growing demand. It creates a wealth of possibilities for investment and growth.

Suburban Housing Trends
In Ohio’s suburbs, popular neighborhoods attract families and professionals seeking affordability and access to high-quality schools. Price trends show steady appreciation, particularly in areas offering an easy commute to major cities like Columbus and Cleveland.

As more buyers prioritize sustainable living, homes with eco-friendly materials such as bamboo, cork, reclaimed wood and linoleum are becoming standard in 2024. Understanding this shift in lifestyle preferences can guide clients toward neighborhoods that blend environmental consciousness with proximity to urban job centers. It ensures they find homes that align with their values and daily needs.

Rural Markets
With over 2.7 million residents, Ohio is among the states with the largest rural populations. It drives strong demand for affordable housing in these areas. Many rural buyers seek value-driven properties with ample space and access to nature while still within reach of essential amenities. Moreover, agricultural land remains a significant investment opportunity, particularly as more individuals and businesses explore local food production and agritourism.

Additionally, rural Ohio's commercial real estate landscape is evolving, with growing interest in warehouses, distribution centers and retail spaces catering to local needs. Understanding these trends allows you to help clients secure properties that meet their goals while contributing to the vitality of rural communities.

Challenges and Opportunities
Inventory shortages pose a significant challenge in Ohio’s real estate market — especially for lower-income renters — so exploring creative strategies to help clients find their ideal homes is crucial.

Nearly 28% of renter households are extremely low-income, and 70% are severely cost-burdened. It highlights the importance of addressing financing issues. You can guide clients through the complexities of mortgage rates and financial assistance programs by helping them secure favorable terms and find housing within their budget.

On the other hand, new construction trends lean toward energy-efficient and modular homes. It offers potential growth areas, particularly in suburban and rural regions. You can leverage technology — like virtual tours and digital marketing — to stay competitive and reach wider audiences. It ensures your clients feel confident and well-supported throughout the process.

Tips for Real Estate Agents
In March 2024, over 34% of homes in Ohio sold above the list price. It emphasizes the importance of delivering exceptional client relationships and service quality in this competitive market. Providing personalized support and understanding your client’s needs is crucial to building trust and helping them navigate a rapidly shifting landscape. Consider these tips:

● Enhance client relationships: Offer regular market updates and provide tailored advice to keep clients informed and confident in their decisions.
● Refine your marketing strategies: Leverage social media, professional photography and targeted advertising to showcase properties effectively and attract the right buyers.
● Identify niche markets: Specialize in areas like eco-friendly homes, luxury properties or investment rentals to differentiate yourself and become an expert.
● Focus on service quality: Streamline the buying and selling process with digital tools and timely follow-ups to ensure clients have a smooth experience from start to finish.

Embrace Change and Stay Ahead
Stay informed and proactive to stay ahead of the evolving real estate market and its emerging trends. Embrace change with a positive outlook and seek opportunities that will allow you to thrive and help your clients succeed.


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