Best Spots to Invest in Ohio
The Buckeye State has become home to some great spots for real estate investors, with a thriving metro capital and multiple suburbs growing thanks to large company headquarters Its home to some of the biggest metro areas in the country with Columbus and Cincinnati, which are large contributors to the state’s real estate growth. With rental property and multifamily thriving populated metro areas across the country as rising housing prices and interest rates have forced people to continue renting for longer periods of time. These metro areas are still seeing plenty of fix and flips and new construction projects as well, with Ohio’s average fix and flip revenue reaching $76,690 in recent years. Material cost increases have likely brought this average down, but with low housing supply and continuous demand, Ohio fix and flips are still highly profitable deals for the right investor.
As of October 2022, Ohio has seen its average home sale price reach $224,700 which marks a 7% increase from the previous year. 12,909 homes sold during this period, which is a 16% drop from the same time last year, which is mostly due to the depleted inventory that occurred from 2021’s rapid buy-up phase. To highlight the inventory issue, there are currently 38,179 homes up for sale, which is 14% lower than the previous year and slightly above the five-year-low for available inventory. Right now, there’s approximately a two-month supply of housing inventory, which is indicative of a healthy balanced market. Most analysts agree that a minimum of two-month supply is required to be considered a balanced market, so Ohio just makes the cutoff.
Ohio’s population growth has contributed to this low inventory, as the state saw a 3% uptick in population between 20000 and 2020 which pushed it above the pace of the average state. Homes are spending an average of 34 days on the market, which hasn’t changed since last year and is also indicative of a healthy market. For comparison, markets where homes spend less than 30 days on the market or more than 90 days on market are either highly competitive or highly unproductive for real estate investors.
Asset Based Lending did the research and compiled it here to help highlight the best places to invest in Ohio real estate. Data for the best places in Ohio was sourced from reputable sources such as Redfin, Rent Café, AirDNA, and local public records. Please note that these Ohio investment suggestions are based on the most recent available data as of November 2022.
Columbus
As the capital of the state, its only fitting that Columbus takes the opening spot for the best places to invest in Ohio real estate. The Columbus metro area is one of the fastest growing parts of the country, with US census data stating that it’s the only Midwest city to grow by more than 100,000 residents in the last decade, highlighting the economic growth and therefore demand for real estate that the surrounding areas are experiencing.
This growing demand comes from large companies like Intel and Honda bringing thousands of manufacturing jobs to the area, with the infrastructure needed to support these new jobs and residents bringing additional construction jobs to the area
The average home sale price for the city reached $262,000 which is just slightly below the 5-year-high for the area.
Homes in the area are spending an average of 38 days on the market, up one day from the previous year and represents a healthy market. Healthy real estate markets typically see homes spend an average between 30 and 60 days on market, so Columbus is considered balanced.
With its dwindling inventory and continued demand, city officials recently stated that the greater Columbus metro area needs to double its home construction over the next decade to meet demand. Builders and contractors that can specialize in versatile mid-range spec builds can take advantage of this market gap by quickly building to
Avg home sale price $262,000 and slightly below the 5 year high
1,169 homes sold, down nearly 25%, low supply
Avg 38 days on market, up one day from last year but indicative of a healthy market, healthy market dictates minimum 30 days on market average
45% of homes sell above listing price
Hot homes selling as quickly as 25 days and 4% above listing price
Top home trends include formal dining room, hardwood floors, and white cabinetry. More views, higher sale-to-list ratio
Cleveland
Average home sale prices are $120,000
The static sale price year over year is because of the major spike in average home sale prices the city experienced in the previous year, where average home prices were hovering just above $80,000.
With a relatively average level of competition and lower home sale prices allowing for easier barrier to entry, Cleveland may benefit new real estate investors that are looking for their first fix and flip or their first rental property. Being able to bring a minimal amount of capital to the first project and using the financing options of a hard money lender, such as Asset Based Lending, then finding a profitable deal
Cincinnati
The average home sale price reached $230,000, which marks an 8% increase year over year. Homes are spending an average of 44 days on market, down three days from the previous year average and
Like many markets in Ohio, inventory shortage has caused home sale numbers to decrease in Cincinnati. Only 594 homes sold in October 2022, which is down 25% from the previous year.
Homes that feature an open floorplan, hardwood floors, and French doors are seeing more listing views and consistent offers above asking price. These amenities can be included in your Cincinnati fix and flip or new construction project to maximize marketability and potential sales price.
Akron
The average home sale price reached $138,000 which is a 15% year over year increase and represents a 5-year-high for the city. Only 342 homes sold
Avg home sale price $138,000, +15% year over year and 5-year-high for the area
342 homes sold, down 12% year over year
Avg 25 days on market, two days higher than previous average, fast moving sales
Home trends in Akron OH that are resulting in more listing views and higher sale prices are cathedral ceilings, fenced back yards, and open concept designs. A common trait among fast-moving Ohio real estate is the open concept and open floor plan, so its
This local Ohio real estate market is rather competitive, with especially hot homes selling about 3% above listing price and going off market as quickly as seven days.
Dublin
Not many outsiders are aware of Dublin OH, but it’s quietly become one of the strongest real estate markets in the entire state. One of the biggest growth factors behind Dublin’s real estate market is the number of large companies basing their headquarters in the area. Employers such as Cardinal Health, which so far has the 15th highest revenue of any US-based company in 2022, headquarters in Dublin and bring plenty of well-paying jobs along with it. Other company headquarters include IGS Energy, Stanley Steemer, and Wendy’s, which provides a strong local economy that boosts the surrounding real estate market. These employers are providing the area with higher-than-average income that’s reflected in the property prices compared to other cities on our list.
The average home sale price for the area reached $434,000, which is up 5% year over year and just below the area’s 5-year-high. Homes are spending an average of 38 days on the market, which is one day less than last year, with especially hot homes selling as quickly as 27 days for approximately 4% above listing. In 2022, Dublin saw many homes sell for upwards of 10% above asking price on a regular basis, which is the highest average in the city’s history and a huge win for Ohio fix and flip investors.
Homes that feature open floorplan, a wet bar, extra storage area, and are within proximity to a tennis court are receiving far more attention These small details help paint a picture of who would want to live in the area and what amenities you can include in your fix and flip or new construction project to help entice a buyer while maximizing the potential home sale price.
Only 20% of the population rents versus owning their homes, but the ones that do rent are doing so at a premium thanks to low inventory.
Parma
The average home sale price reached $176,000 which is a 7.3% increase year over year and just shy of the five-year-high for the town. Like the other markets on our list, the total number of homes sold is down approximately 27% from the previous year with only 108 homes sold during October 2022. These homes move quickly, with only 15 average days on the market, a significant six days less than last year.
More than half of the homes sold in town are sold above listing price, highlighting the competitiveness of the market along with the fast moving deals.
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