Dayton, Ohio Real Estate Market: House Prices, Trends & Stats

If you are keen on finding a new location for investments, you should turn your head to Dayton, Ohio real estate. As reported by Dayton Daily News in an article dated December 7, 2021, the real estate market in the region experienced a record-breaking year in 2021. This is indicated by the exponential increase in home sales, with four times higher sales than in 2011.

In 2021, the city of Dayton was ranked as one of the smaller real estate markets with the highest rent increases in the United States. The Dayton Realtors expected this trend to continue this year as they predict another banner year despite the declining sales prices. So, what’s special about this Midwestern city?

Dayton, Ohio at a Glance

Dayton City is located in the southwestern region of Ohio as a part of the Miami Valley region. In addition, the city is the country seat of Montgomery County. The United States Census Bureau reported that the city has a total area of 146.33 kmor 56.59 square miles. Despite its small size, Dayton boasts a diverse economy driven by various industries, including manufacturing, logistics, aerospace engineering, etc.

Most people also know Dayton City as the birthplace of Orville Wright who, along with his brother Wilbur Wright, created the first motor-operated airplane. For that reason, the city has a special relationship with the aerospace industry.

Dayton, Ohio Population Breakdown

As of July 2021, the United States Census Bureau estimated that Dayton City had a population of around 137,571 with more than 814,000 residing in the Dayton metropolitan area. This makes Dayton the fourth largest metropolitan area in the state of Ohio and the 73rd in the United States.

The United States Census Bureau also estimated that the population growth in Dayton declined by 0.15% year-over-year. Despite the slight population decrease, the overall population growth is quite high for the last 10 years. As reported by Dayton Daily News in August 2021, Huber Heights, Fairborn, and Kettering experienced the highest population growth since 2010, with 5,338, 2,158, and 1,699 respectively.

Dayton, Ohio Economy

As previously mentioned, the Dayton economy is backed by various companies in different industrial sectors, including aerospace, defense, agriculture, automotive, logistics, and distribution. On top of that, Dayton is also a home for numerous big corporations, including Reynolds and Reynolds, CareSource, Kettering Health Network, and Standard register.

With the strong economic support from various industries, the United States Bureau of Economic Analysis reported that Dayton has a GDP of around $35.4 in 2017. Amazingly, the city’s GDP had seen an exponential improvement of more than 7% over the past ten years.

As reported by Dayton Daily News dated January 2022, the trend is expected to continuously grow for years to come due to the high number of new economic development projects in the region, including the expansion of the F-35 fighter jet sustainment program at Wright Patterson Air Force Base and the Conagra Brands plant expansion.

Dayton, Ohio Job Market

The job market in Dayton, Ohio is proven to be strong as several employment sectors show the fastest signs of growth. As of May 2022, the United States Bureau of Labor Statistics indicates that the city of Dayton has around a 3.2% of the unemployment rate, a massive decrease since 2021. On the other hand, Dayton’s employed individual has increased by 4,100 since last year, from 372,600 in December 2021 to 378,500 in May 2022.

A 2018 report by Dayton Daily News indicated that Premier Health Partners, Kettering Health Network, Montgomery County, University of Dayton, and Sinclair Community College are the top five employers in the region. In addition, the Wright-Patterson Air Force Base is the largest single-site employer in the state of Ohio.

Dayton, Ohio Education

The Dayton Development Coalition reported that Dayton City has a high concentration of individuals with a degree in the field of science, technology, engineering, and mathematics (STEM). As such there are various top-tier colleges and universities in the metropolitan area of this region, including Wright State University, the University of Dayton, Antioch University, and the Air Force Institute of Technology. With such a high number of universities, it is no strange that more than 31% of Dayton residents hold a bachelor’s degree and advanced degree.

Cost of Living Dayton, Ohio

Numbeo estimated that Dayton’s family of four monthly costs are around $3,097 without rent. This makes a single person’s monthly cost to be estimated at around $863. In addition, PayScale indicates that this year’s cost of living in the region is 10% lower than the national average. Furthermore, Dayton also experienced a decrease in housing prices, utilities, and groceries from the previous year, with a 28%, 2%, and 3% decrease respectively.

Dayton, Ohio Housing Market Overview

If you’re eager to invest in real estate, Dayton is the perfect place for you. As reported by Roofstock the Dayton real estate market is heavily in favor of rental property investors. This condition is fueled by the tight housing inventory and the lack of affordable houses for first-time buyers. Therefore, as reported by the United States Census Bureau, more than half of the housing units in the region are renter-occupied.

In addition, there are plenty more to like about Dayton real estate market, from low home inventory to inexpensive median listing home prices. Here’s the full breakdown of Dayton, Ohio real estate.

Dayton, OH Real Estate Market

As reported by Dayton Daily News dated May 21, 2022, the Dayton-area housing market remains a seller’s market despite the low home inventory in the region. Furthermore, a representative from Dayton Realtors stated that the increase in interest rate hasn’t seemed to affect individuals from buying or selling homes despite the 5% interest rate.

However, a June 2022 report from indicates that the condition has been overturned. As of June this year, the median listing for Dayton home for sale was around $160,000. Meanwhile, the median listing home in the region is around $117 per square foot and the median sold home price is around $221,500. Based on those data, the real estate market in the Dayton area is heavily in favor of buyers, which means the number of available units is higher than the buyer.

Other data provided by Zillow revealed that the Home Value Index in the area is around $111,431 per June 2022. Moreover, data provided by Redfin indicated that the median sales price for single-family homes is around $123,950. Furthermore, the sale-to-list price for the same type of home is around 100.1%.

Dayton rental property market

A 2021 report from the United States Census Bureau revealed that around 52.9% of housing units in Dayton, Ohio are renter-occupied. In addition, MarketWatch’s report dated January 2022 revealed that Dayton was one of the top four cities for renters as anyone can easily pay for rent using a Social Security Check. With low median home prices and a rising price-to-rent ratio, Dayton provides a unique and one-of-a-kind opportunity for rental property investors to make a fortune.

Some findings may solidify your decision to invest in rental properties in the region. For instance, a 2022 report by Zumper indicated that the average rent price for a 3-bedroom house in Dayton is around $1.206 per month. As of June 2022, the property marketplace website also reported that the average rent in the region has increased by 3% year by year. For the past three years alone, rent for 3-bedroom houses in Dayton has increased by 17%.

It is essential to note that the rent price in Dayton varied between neighborhoods. As reported by Homesnacks, the least expensive Dayton neighborhoods are McCook Field, Arlington Heights, and Northern Hills, with rent-to-income ratios of 0.011, 0.012, and 0.01 respectively. On the other hand, the most expensive Dayton neighborhoods are Gateway, University Park, and Pheasant Hill, where rents can range between $1,400 to $1,650 a month.

Dayton, Ohio Real Estate Market History

Historic price change and housing affordability are the two most essential data sets when selecting markets for rental property purchases. Long-term changes in property price can be an excellent indicator of the upcoming appreciations and equity increases. On top of that, investors can accurately calculate the total number of units a certain amount of money can buy. On the other hand, the Housing affordability index indicates a rental property’s demand in the market.

However, it is essential to note that affordable housing doesn’t always mean people prefer buying to renting. In the case of the Dayton area, although the price is lower, most people still prefer renting to owning a property. In terms of the market history, Redfin’s yearly trend report showed that the Dayton median home prices experienced an exponential increase over the last five years, with $48,000 in 2017 and $122,000 in 2022.

Meanwhile, data provided by the National Association of Realtors in 2020 shows a somewhat fluctuating trend in the Housing Affordability Index (HAI) in Dayton, Ohio. HAI is calculated by comparing the median family income to the median price of median-priced existing homes. In calculating the index, researchers always assume that the property is purchased using a conventional loan with a 20% down payment.

The HAI uses 100 as a baseline. So the higher a market’s HAI is above 100, the more affordable the market is. The current level of HAI in Dayton, Ohio, is at level 267.20, a 2.30% increase from 2020. However, if we look back five years ago, the Dayton area HAI was at its peak in 2016, with an HAI level of 284.60.

Life quality in Dayton, Ohio

As reported by Dayton Daily News in July 2021, Dayton is ranked third as the best place to live in Ohio. The ranking was calculated by analyzing the data from the United States Census Bureau, the FBI, the United States Department of labor, and their internal resources. Since 2021, Dayton has climbed to the top, placing itself as the second best place to live in Ohio, according to the US News & World Report 2022.

A 2019 report by Forbes dubbed Dayton as the best place for pursuing business and careers in the US. As previously mentioned, Dayton is home to many companies from different industries. In addition, the city is also home to some prestigious universities.

Dayton, Ohio Real Estate Market FAQs

Is Dayton, Ohio a good city to live in?

The US News & World Report dubbed Dayton as the second best place to live in Ohio in 2022 and 2023. According to the organization, Dayton is the best place to love due to its unique activities, a strong sense of community, aviation history, and beautiful outdoor spaces. In addition, Dayton was also ranked 94th nationally as the best place to retire.

Is Dayton, Ohio affordable?

The cost of living in Dayton, Ohio is 10% lower than the national average. The region is famous for its affordable housing, groceries, rent, and entertainment. This resulted in the Business Facilities’ 2021 Metro Ranking Reports placing Dayton, Ohio as the fifth of the top ten most affordable cities in the US.

Is Dayton, Ohio a Good Place to Buy a Rental Property?

In 2019, Dayton was dubbed the second best investment market in the US. In addition, also regards Dayton, Ohio as one of the top 20 hottest housing markets in 2022 due to its thriving local economies, tech sector job growth, and relative affordability.

Is Dayton a good real estate market?

A 2020 analysis by Wall Street Journal and placed the Dayton housing market at 73rd in the US. In addition, Redfin’s yearly trend report showed that the Dayton median home prices experienced an exponential increase for the last five years, with $48,000 in 2017 and $122,000 in 2022. This appreciating trend in property prices makes the Dayton market one of the best real estate markets in the US.

Final Words

Dayton, Ohio is one of the best real estate markets in the US due to several reasons. The first is the city’s low unemployment rate. The second is the affordability of housing in the city. The last factor is the strong rental income, in which the typical home will rent for about 1% of the purchase price. For that reason also, Dayton is the best place to invest in some rental properties. So, if you wish to find a place to invest in a rental property or real estate, look no further than Dayton, Ohio.

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