The Cincinnati Real Estate Market: Everything You Need to Know

Renowned for its rich heritage, diverse culture, and thriving artistic community, Cincinnati is generally considered a great place to live. As the third-largest city in Ohio, it is located on the Ohio River and has an approximate population of over 300,000.

In comparison to other major cities in the country, Cincinnati's real estate market has historically been stable and offered reasonably priced properties. The city provides a range of housing options, ranging from historic houses to contemporary condos and urban lofts. Cincinnati is a desirable location for couples, individuals, and families looking for affordable housing.

However, buying and selling a home is one of the most important decisions you will ever make, so it's important not to rush into it. By taking the time to learn more about the housing market, you can ensure that you're making a wise choice that will offer future returns.

In this article, we'll provide everything you need to know about the Cincinnati market.

About the Cincinnati Housing Market

Before we delve into the market trends, let's first look at the city and what it offers real estate investors.

The Cincinnati real estate market has grown steadily in the past decade. Moreover, the demand for homes in the city has increased, especially in well-known areas like Hyde Park, Over-the-Rhine, and Downtown Cincinnati.

With the repair of historic structures, new construction initiatives, and the inclusion of facilities like eateries, stores, and attractions, these districts have undergone improvements. The strong job market in industries like manufacturing, healthcare, and education has also played a role in the expansion of the real estate industry.

Cincinnati's average home price differs by neighborhood but is often lower than the national average. Due to its accessibility and potential for growth, Cincinnati has become a popular choice among investors looking for real estate investment options.

Taking advantage of tax incentives and the city's attempts to conserve its architectural legacy, some investors have concentrated on buying and repairing old houses. Additionally, given the high demand for rental accommodation in the city, investing in rental homes may be a wise choice.

Cincinnati Housing Market Trends

Now that you know a little about the city, it's time to look at the statistics and hard facts to assess the performance of the market over the past year.

We have taken data from sources like Redfin to help you gain more insight into the market.

• Home sales. Properties in Cincinnati typically receive four offers and sell within seven days of being listed, on average.
• Number of units sold. According to a report from the Cincinnati Area Board of Realtors, although inventory and median sales prices were up, there was a decrease in the number of properties sold, as well as the number of new listings and overall sales volume, which indicates a mixed trend.
• Median sale price. In Cincinnati, OH, the average selling price of a home was $258,000, an increase of 4.5 percent from the previous year.
• Average price per square foot. Cincinnati's typical sale price per square foot is $159, a decrease of 0.93 percent year-over-year.
• Sale price vs. list price. Homes typically sell for 1 percent over the list price and will go pending in a week.
• In-demand real estate. Hot properties can go pending in about three days and are sold for around 5 percent more than the asking price.

Moreover, statistics indicate that 0.42 percent of the population hoped to move to Cincinnati from other cities and states. 69 percent of homebuyers already living in the city searched for properties within the Cincinnati metro area.

This indicates that people likely find the Cincinnati area an attractive option for housing.

What Affects Cincinnati's Real Estate Market?

The truth is that there are many factors that determine the state of the housing market. Let's explore some of these factors to understand the health of the Cincinnati market.

Cincinnati's Economy

The economy plays a major role in a city's real estate market because it determines the number of jobs that are available for workers and the overall quality of life, which influences the demand for housing.

Cincinnati has a thriving economy with a number of essential sectors, such as manufacturing, healthcare, finance, and education. It also boasts a low unemployment rate of 3.6 percent.

The city's gross domestic product (GDP) increased by 6.5 percent between 2016 and 2021, exceeding the 4.6 percent national average, as reported by the Bureau of Economic Analysis. Cincinnati is a desirable location for real estate investors due to the tremendous demand for housing that has resulted from this economic boom.

The tech industry is also growing in Cincinnati and contributing to the positive growth of the economy, increasing the number of jobs created and the demand for housing.

Rental Market

The rental and real estate markets are interconnected. As stated by RentCafe, Cincinnati has a healthy rental market with a vacancy rate of just 3.6 percent and a median rent price of just over $1,100 per month.

Currently, over 60 percent of the city is occupied by tenants rather than property owners, indicating that it offers great opportunities for investors. Furthermore, it is home to a number of prestigious universities, which generate demand for rental properties for staff and students.

If you are considering a rental property in Cincinnati, you will find it a lucrative endeavor, as there is a great demand for housing in the city.

Affordability

This is another key factor that affects the real estate market because if real estate prices are high, many homebuyers and investors will not be able to afford housing.

In comparison to other large US cities, real estate in Cincinnati is relatively inexpensive. Zillow reports that Cincinnati's average home value is $215,066, which is less than the national average.

This means that properties are affordable, which has contributed to the health of the real estate market. Families and young professionals, in particular, find the city to be an appealing prospect due to its reasonable housing prices, robust economy, and low cost of living.

Mortgage Interest Rate

Since most homebuyers use a mortgage to purchase their homes, the mortgage interest rate also contributes to the state of the real estate market.

Because a housing market is fundamentally a network of buyers and sellers, anything that influences their decision to buy or sell will affect the market as a whole. If interest rates are high, the demand for real estate will drop, which increases home prices.

According to USA Today, mortgage interest rates have increased from 3.6 to 6.4 percent. This increase has been lowering the demand for housing around the country. However, considering the affordability of properties in Cincinnati in comparison to other cities in the US, this does not affect the real estate market considerably.

Population

Over the last 10 years, Cincinnati's population has been continuously increasing. The U.S. Census Bureau projects that between 2020 and 2030, the overall population of the Cincinnati MSA will rise by 3.1 percent. Moreover, the city is a desirable location for property investments because of its expanding population, robust economy, and affordable real estate market.

Forecast: What Does the Future Hold for the Cincinnati Area?

The Cincinnati housing market has had a period of stable expansion. It has proved advantageous for both investors and existing homeowners, with the average property value now standing at $258,000, which increased from the previous year.

Properties in Cincinnati also frequently go pending in under four days, implying that the city has a competitive real estate market, but will this positive trend continue? 

It's important to take into account a number of variables and estimates while analyzing the housing market forecast for Cincinnati. We'll consider a few in the section below.

Cincinnati MSA Level

According to the Cincinnati MSA (Metropolitan Statistical Area) level, the market is anticipated to grow steadily. By the end of this year, it predicts growth to be 1.2 percent. Furthermore, the prediction shows a significant growth rate increase of 5.1 percent until April 30, 2024.

According to these projections, the Cincinnati housing market will continue to grow rapidly, giving buyers and homeowners a chance to benefit from rising home values. It appears to be in good shape, with rising demand and possibilities for long-term investment benefits, according to the expected growth rates.

Sale-to-list Ratio

By the end of March this year, the average sale-to-list ratio was 0.995, indicating a balanced market where houses are typically selling for around the asking price. A competitive market where homebuyers are prepared to pay extra for in-demand properties is also indicated by the fact that around 33.6 percent of transactions have exceeded the list price.

By the end of April 2023, the average number of days until properties were pending was four days. This tells us that homes in Cincinnati sell fast and will likely continue to do so.

The Bottom Line

With a booming economy and a growing population, among other factors, Cincinnati, OH, has proved to be an attractive option for investors and those hoping to sell. Now that you know about the Cincinnati real estate market, you're ready to make an informed decision.

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Frequently Asked Questions

1. What are the most affordable neighborhoods in Cincinnati?

Here is a list of the safest areas with the lowest home prices:

• Oakley
• Hyde Park
• Clifton
• Mt. Washington
• Pleasant Ridge

2. Is Cincinnati a buyer's or seller's market?

Real estate in the city sells for around the list price, which indicates that the market favors sellers. However, considering the affordability of houses in the Cincinnati metropolitan area and suburbs will likely not deter buyers.

3. What are some tips for real estate investors?

First, we recommend doing enough research before investing in housing in a particular city. Set clear goals to determine whether you are looking for long-term appreciation, rental income, or a combination of the two.

Get expert advice before making an investment, and assess the risks before you make your decision. We also recommend staying up to date on the latest market trends.