Rental

What Are the Best Cities in Ohio to Invest in Real Estate?

Rebounding from COVID, growing rapidly, enjoying a job boom – these are all things that describe modern-day Ohio. For real estate investors looking for the next profitable venture, it might be worth it to expand your portfolio to this state, especially if you choose the right cities.

Of course, the success or failure of an investment effort is often dependent on the surrounding environment and a city’s local real estate market. With that in mind, check out these market insights from the experts at Lima One to discover the best cities in Ohio to invest in real estate.

Ohio is Where You Should Buy Your Next Investment Property

Ohio’s real estate market is on fire, and real estate investors who specialize in rental properties have taken notice.

People of all ages are flocking to Ohio in droves for the low cost of living, prestigious universities, a wide variety of attractions and activities, and one of the biggest economies in the country. Ohio is home to 25 Fortune 500 companies, 338 colleges and universities, and a large healthcare industry that employs much of Ohio’s population.

The Buckeye State has a low cost of doing business, too. As any experienced real estate investor knows, a growing job market and bustling economy are always good signs for a healthy housing market.

That all said, some cities are certainly better spots for investments than others. The most growth is happening in Cincinnati, Columbus, and Cleveland, where home values are expected to appreciate and where a variety of factors have combined to create favorable market conditions for savvy investors with reliable financial backers.

Cincinnati, Ohio Rental Market Statistics

Cincinnati has seen a significant increase in the average rent over the last year, rising to a median of $1400 per month.

That said, Cincinnati rent prices are still lower than average compared to the national median, which hovers around $2000. Note that this varies depending on the exact neighborhood of Cincinnati, however; certain neighborhoods, like Hyde Park, have seen much higher rental averages compared to neighborhoods like Northside.

For Ohio rental investors, this is potentially good news. Affordable rent prices mean that rental properties have no trouble attracting tenants, putting Cincinnati in the running for the best rental market in Ohio. Of course, you need to be able to purchase properties before you can set them up for consistent income.

At the time of this writing, the average listing home price for a single-family property is $284,500. The actual sale price is $265,000, indicating that sellers typically need to bargain with buyers to take their properties off the market. In other words, it's a buyer’s market: ideal for new real estate investors moving into the area.

The bottom line? With a qualified financing partner, investing in the Cincinnati real estate market is more than feasible, whether you want to fix and flip single properties or set up new apartments for multifamily rentals.

Columbus, Ohio Rental Market Statistics

Columbus is a great place to live and rent for many, including growing families. The cost of living in Columbus, Ohio is 10% lower than the national average, and the housing market is exceptionally steady compared to the national average of listing prices for homes. Furthermore, Columbus’s economy is hugely diverse, offering career positions with major industries such as technology, finance, and education.

Columbus also benefits from an overall balanced rental and sales market. The median rent in Columbus, Ohio is $1500 per month, which has increased slowly but surely from month to month throughout 2024. The Columbus, Ohio rental market is a potentially profitable one for investors ready to pounce on good opportunities.

Meanwhile, the median listing price for homes in Columbus is nearly $300,000, while the average sale price is about $275,000. Similarly to Cincinnati, sellers are regularly being required to lower their asking prices to secure fast sales. Find a great property at a prime location, and make a fast cash offer, and you'll be likely to snap up that property for your own portfolio.

Cleveland Rental Market Statistics

The Cleveland real estate market is one of the most popular places to invest in real estate in the nation, and it's not hard to understand why.

Downtown Cleveland has undergone an estimated $19 billion renaissance during the past few years. Acres of green space were placed around Public Square, along with new apartment communities, commercial buildings, and other amenities. The city is home to numerous professional sports teams, including the Cleveland Indians, the Cavaliers, and the Cleveland Browns. It also plays host to several popular cultural attractions including the Rock & Roll Hall of Fame and the Cleveland Museum of Art.

Since 2000, Cleveland’s population has grown, with millennials being the largest demographic moving to the city. Millennials and young professionals are attracted to the city for its affordability, relatively low cost of living, and a job market with ample employment opportunities offering high-paying positions in industries such as IT, healthcare, and manufacturing.

With an average rent of $1195 per month and a fairly steady pricing trend, it's not overly difficult for tenants to find properties. That's a good thing for prospective rental investors who want to purchase properties and fill them with tenants sooner rather than later.

What about actually breaking into the market? The median home sale price in Cleveland OH is nearly $150,000. Not only is this significantly more affordable than single family home real estate in many other big cities throughout the United States, but it's also similar to the median listing price.

That’s a double-edged sword. On the one hand, you should be prepared to pay the full listing price for an attractive property in Cleveland. But on the other hand, a financing partner should have no difficulty getting you the capital you need to make an investment of less than $200,000.

That's not all Cleveland real estate investors have to look forward to. Once they are put on the market, homes usually sell after just 26 days, so your turn around time from buying to selling could be as short as a few months.

Find the Right Partner for Your Ohio Real Estate Investing

Ohio has several attractive qualities to offer real estate investors who are researching where to buy an investment property. Ohio’s affordable cost of living and reasonable real estate prices make it an excellent state for portfolio growth – provided you have a lender who can help you achieve your goals.

Whether you’re trying to fix and flip attractive single-family properties or purchase multifamily homes for renting to multiple tenants, it’s vital to find a lending partner to help you:

• Secure a loan with the best price and maximum leverage for your next rental investment
• Close properties quickly and certainly
• Run your construction or rehab projects smoothly

That’s where Lima One can help.

We’re experts in financing Ohio investment loans and helping investors like you expand their portfolios. Our team of experienced professionals will help guide you through our rental loan programs regardless of your experience level and help you purchase, refinance, or cash-out valuable properties depending on your goals.

If you’re interested in obtaining a loan for a rental property in Ohio, get started today and scale your rental property portfolio with Lima One!

Editor’s note: This blog has been updated as of December 2024 for comprehensiveness