Planning to invest in Ohio’s real estate market this year? Here’s an insider’s look at the latest trends to help you make smart, well-informed decisions about buying, selling, or investing in the Ohio housing market in 2024.
Trends and factors currently influencing the growth of Ohio’s housing market
According to this report from Redfin in May 2023, Ohio is one of four major metropolitan areas where buying a home is cheaper than renting one.
Real estate prices, however, have increased during the past two years, aligning with trends nationwide.
Population growth
From 2010 to 2022, Ohio’s population increased by 1.9%, from 11.5 million to 11.7 million, which is lower by a wide margin compared to the 7.7% population growth in the US during the same period.
However, in a recent report by the Greater Ohio Policy Center, the rest of Ohio (excluding Columbus and other surrounding areas) experienced a loss in population of around 1%, roughly equivalent to about 100,000 people.
Although Ohio experienced a relatively stagnant growth rate, the state remains one of the most populous states according to the United States Census Bureau.
Impact on the real estate market
Ohio’s real estate market has become increasingly competitive over the past several years. In Cleveland, homes receive an average of three offers and sell within 25 days, reflecting a sizable increase in demand.
Some of the main contributing factors pushing this trend are the region’s vibrant economy, the slow pace of construction, and the presence of notable employers like Nestle, Progressive Insurance, Goodyear, and Sherwin-Williams.
New first-time homebuyer programs
The Ohio Housing Finance Agency (OHFA) announced several first-time buyer programs available statewide to residents of Ohio. With an OHFA loan, qualified homebuyers can get $5,000 offered assistance with no income limit.
For eligibility requirements and other information, check the OHFA website.
Key factors to watch out for in Ohio’s housing market in 2024
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Limited inventory. Ohio’s real estate market has been experiencing a shortage in inventory since 2021 due to escalating home costs, low vacancy rates, supply chain issues, and low construction rates. The scarcity has only worsened since then, leaving mostly overpriced homes the only options left on the market.
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Affordability. Despite increasing home prices, the Cleveland metro area will likely remain one of the most affordable areas to buy real estate in the coming years, making it an attractive choice for both investors and first-time homebuyers.
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Stabilized mortgage rates. With the Federal Reserve pausing interest rate hikes in June 2023, mortgage rates are expected to level off this year. This will make the Cleveland housing market more attractive to prospective buyers, leading to an increase in home sales.
Want more helpful real estate tips? Check out some of our previous blog posts!
WORK WITH CLEVELAND’S TOP REALTOR TODAY
In the market for the Ohio real estate? Work with me, Michelle McQuade, today! Realize your goals and navigate the real estate market with ease by getting in touch with me at 440.823.2448 or by sending an email.