Are you planning to invest in the cincinnati real estate market? That is a good idea. Cincinnati is one of the promising real estate markets in the United States. With the high sales and transaction rate, where a home only needs 5 days in the inventory list before getting sold, it shows that property in this area is in high demand.
The home sales prices also keep increasing by 10% annually. Furthermore, the real estate market in Cincinnati also shows good signs for investors. By November 2021, the inventory rate is down by 14.5%. The lower availability like this one will increase the value of the property in the future. Therefore, you can’t find other places better than Cincinnati for property investment.
On the other hand, based on the official data from the local government, Cincinnati also shows an increase in housing demands. However, with the lower inventory rate, the availability of the property couldn’t fulfill those demands. Thus, many property owners rent their buildings to people.
That is also a good sign for property investment. Other than owning a property with an increasing value trend, you also can utilize it for making money. Therefore, buying Cincinnati property will give you more benefits than you ever imagined.
So, are you interested in starting an investment in the cincinnati real estate market? This article will help you to understand more about this area and the condition of its real estate market. We hope, at the end of the article, you will get the information that you need to make the next move for your property investment plan. Here is everything that you need to know about the real estate market in Cincinnati.
Cincinnati Population and Its Growth
To learn more about the real estate market condition in Cincinnati, the first thing you should do is find out the population in this area. Why is the information about the cincinnati population necessary? The population, especially its growth, shows you the projection of the housing demands in the future.
If a city has higher population growth that means the housing demand in the future will be higher as well. Owning a property in such an area will be beneficial because more people will need your property in the future. It increases its value, which is the essence of your investment property.
Furthermore, the population growth also shows whether the real estate market in the area is going to the right diction or has a risk of falling in the future. As we mentioned, more population means more housing demands. That will also increase the activity in the real estate market. That kind of market will give you a better chance to make a profit with your property. In short, it has high liquidity.
Cincinnati itself is one of the largest cities in Ohio. Furthermore, according to Cincinnati.com, this city also has the fastest economic growth in the Midwest. The increasing population growth also has been shown for the past 10 years. And, it doesn’t show any sign of stopping.
According to the latest data from the United States Census Bureau, in 2022, an estimated 311,080 people are living in the city area and more than 2.22 million people in the metropolitan area. This city is well-known for its art culture, sports, and various entertainment activities. Many people call it the Paris of America.
Cincinnati also shows an increase in population by 1.4% per year. And, compared to a decade ago, the population growth has been increasing by more than 4%. However, the population in the city area decreases by 43% since its peak in 1950. On the other hand, the population in the metropolitan area keeps increasing, and now becomes the most populated area in Cincinnati.
Based on that data, we can see that most people who move to Cincinnati from other towns or other areas within the city prefer the metropolitan area. Therefore, you can see that as the best place where you can buy the property. And, it is also shown that the real estate market in the metropolitan area is more active than the urban or suburban areas.
Furthermore, the Cincinnati metro area includes 15 counties in the Southwest Ohio region. With that size, we can see a better prospect for growth in the future. And, that will also boost the real estate market growth in the same area.
Cincinnati Real Estate Market Condition
As mentioned earlier, the Cincinnati real estate market is one of the best or hottest real estate markets in the United States. Forbes also mentioned this matter. According to Forbes, cincinnati real estate is one of the top three hottest real estate markets in Ohio and the United States.
This condition is also shown in the values of the property in the Cincinnati area, especially the metropolitan area. According to the Zillow Home Value Index (ZHVI), the average value of a home in Cincinnati is $215,291 by November 2021. So, we can expect that the property value this year will be higher than last year.
Furthermore, the trend is also showing an increase. Compared to last year, early 2022 shows that the property values in Cincinnati have increased by 17%. If we take a look over the past five years, the home values increase even shows a bigger number, which is 70.6%.
Based on that trend, we can say that the property value in Cincinnati will also increase the 2023 and next years. Moreover, the population that keeps growing will also boost this number even further. Therefore, you should get the property investment in Cincinnati right away.
The Average Home Price in Cincinnati, Ohio
Now, to start the investment, you should know the prices of the property in this area. To get the base of the prices that you can use as reference, we have data from the Cincinnati Area Board of Realtors (CABR). According to CABR, the average or median price for a home in Cincinnati is $240,000.
We also got information from other sources. According to Zillow, the median price of a single-family home is $259,655. That is the price for a home in the metropolitan area, the most populated area in Cincinnati.
Furthermore, Zillow also added that there will be a 16% increase per year, starting from this year. That means you should get the property right away. This year will be the best year to start your investment in Cincinnati property.
What can we get from those median prices? The median prices show you the condition of the cincinnati real estate market. The median home prices in the United States are $374,900. So, we can say that Cincinnati has lower than the national average. That also is a chance for you to buy them with a lower budget.
However, to get the best price for the property in Cincinnati, you also should pay attention and choose the location of the property. If you want to get the most affordable property, you can choose one in East Price Hill. According to Realtor.com, this area’s median home price is only $119,500.
On the other hand, if you don’t mind spending more money, you can choose Mount Lookout. This area has the highest median home price compared to 50 neighborhoods in Cincinnati. The median price for a home in Mount Lookout is $415,000.
How Much Cincinnati Cost of Living Do I Need?
Another important thing you should pay attention to is the living cost. It will also affect the price of the house that you need to pay in Cincinnati. Depending on whether you live alone or with family, the living cost is also different.
As for you who live alone, you will need at least $1600 per month, this is including rent. And, you will need at least $3800 per month for living with your family. This number is for a family of four. Averagely, you need to make at least $40,000 a year to live comfortably in Cincinnati.
That cincinnati cost of living number has a strong relationship with the real estate market. With that number, you can estimate how much money you can receive, if you rent out your property. Therefore, it is quite profitable.
Even though the cost of living seems high, according to Areavibes.com statistics, it is lower than the state and national average living costs. Compared to the Ohio average living cost, the Cincinnati living cost is 2% lower. As for the comparison with national living costs, Cincinnati’s living cost is even 11% lower than that.
Cincinnati Real Estate Market Forecast
The Cincinnati metro area is predicted to expand much bigger than today. One of many reasons is the I-75 route expansion. There is a chance that the Cincinnati metro area will be combined with the Dayton metro area into one big metro area alongside this route by 2040. Therefore, it will boost the original cincinnati metro population and also increase the housing needs/demands.
Some people are worried about the Amazon distribution center, the built-in Daytona area. However, the expert stated that the Amazon distribution center won’t affect Cincinnati’s growth in the future. This area still has the prospect to grow bigger and add more power to its real estate market.
Based on the history of the real estate market in Cincinnati, we also can say that it will survive that. The Freddie Mac House Price Index (FMHPI) also reveals very good results, such as:
- The home price grew by 50.8% in 5-year from 2016 to 2021. We also can expect that it will still grow higher this year and in the future.
- As for one-year change, it reaches 13.5%
- As for monthly change, it reaches 0.5%
Kiplinger also releases the data about the property affordability for the Cincinnati metro area. They state that the Cincinnati metro area has an affordability index of 1 out of 10. That number shows the house in this area is much more affordable than many areas in the United States.
So, what can you get from this data? It shows that the Cincinnati real estate market has a promising future. Plus, it also has more affordable prices, so investing in this area is much easier. You don’t have to prepare too many budgets to get the property. The problem is the availability. With the decrease in the inventory or supply, you will have to work hard to get the property that you like.
Pros and Cons
- Lower home median prices than national median prices,
- Lower living costs than states and national average living costs,
- More renter-type people come, which gives you a chance to make money from your property.
- Low availability of property, which could give you a problem buying the property you want.
- Is the housing market slowing down in Cincinnati?
Yes, the inventory rate is decreasing by 14.5% by November 2021.
- What is a good time to buy a house or property in Cincinnati?
NerdWallet and Realtor.com suggest you buy the property in January, which has the lowest price of the home and other properties in Cincinnati.
- Is Cincinnati a good place to live with family?
Yes, however, Forbes ranks Cincinnati as one of the best places for business and careers. So, you can focus on this part when you buy property here.
- In which area of property should I buy?
Hyde Park is the safest neighborhood in Cincinnati.
- What is the home median price in Hyde Park?
The median prices for a single-family home in Hyde Park are $390,000, slightly higher than the average home price in cincinnati ohio, but it is worth buying.
That’s everything you need to know about the cincinnati real estate market. We hope you can get the best property you can buy in this area for living place or business purposes. You can start a good property investment that will give you more profit in the future. Then, you only need to find a good real estate agent to get the property.