One of the most interesting destinations for real estate investment in the United States is Cleveland Ohio, and the real estate market in the city is warming up and attracting local investors as well as overseas investors.
The city of Cleveland, on the banks of Lake Erie and close to the Pennsylvania border, is considered one of the most successful examples of an industrial city that has succeeded in reinventing itself. As a result of its location, Cleveland started as a traditional industrial center located at a commercial crossroads, but with the decline of traditional industry, the city was forced to cope with economic crisis and to re-cultivate both the urban city fabric and the economic infrastructure. As of today, there are almost 400,000 people living in the city, while the metropolitan area of the city is home to more than two million residents.
Today, the properties in Cleveland are traded at relatively affordable prices and constitute an opportunity for investment. In addition, it is important to pay attention to growth in two trends that will have a major impact on the growth of real estate value in the city – the baby boomers’ aging, which is driving demand for smaller assets that are located closer to urban and leisure centers and increased demand for urban properties from the Y generation. A high walkability neighborhood factor (the amount of spaces within walking distance that include shops, entertainment, workplaces and public spaces).
Here are five things that might interest you when considering an investment in Cleveland.
- Cleveland is experiencing a period of growth and recovery after exiting the economic crisis that caused a nearly 30% fall in real estate prices. Currently, Cleveland is a market of buyers when real estate market operators report steady growth of between 5-10% in rent rates. The improvement in the economic situation and the growth in the city’s workplaces create a positive flow of residents into the urban area and increases the demand for housing.
- Cleveland is a diverse city – the city and the surrounding urban area, providing a large number of neighborhoods and properties at different levels of prices and population. The city has rental complexes, neighborhoods with high-rise buildings and of course many neighborhoods of townhouses and single homes. A strong presence of Fortune 500 companies in the city contributes to employment growth, reduced unemployment and consistent demand for commercial real estate, office space and industrial buildings.
- Significant investments in urban renewal and upgrading of urban infrastructures. A massive investment in Cleveland’s Down Town increases the district popularity both in terms of the entertainment environment and as an upgraded residential area. The main development momentum in Down Town occurred between 2010 and 2014 with a massive investment of more than $5B in the development of commercial real estate, residential and infrastructure, during which more than 16 million square meters of commercial and revenue-generating properties were built.
- Cleveland is a leading cultural center in Ohio and in the United States – a stage arts center and five theaters in the Theater District join four museums and the Rock ‘n’ Roll Hall of Fame and 4 sports teams for which Cleveland is their home base. Adding to this are 27 high education institutions that are concentrated in the city and you will get a first-class cultural destination with varied entertainment options.
- Cleveland is one of the most powerful destinations in Airbnb’s asset map. Several factors contribute to this – Cleveland is an attractive tourist destination for domestic tourism – a combination of tourist attractions and a renewed urban environment, with a large number of cafes, restaurants and entertainment venues. High demand for short-term rental properties, an increase in the number of young people in the city’s population and a number of taxes on hotels (such as 5.5% hotel accommodation and 3% tax on temporary hotel stays) make investing in short-term rental properties a profitable opportunity in the city.