News Summary
Cleveland has risen to be the second most affordable major housing market globally, according to Redfin Real Estate. With home prices approaching $500,000, affordability challenges persist as the average U.S. home price reaches $440,000. The rising costs have transformed homeownership into a challenge for many, especially in a sluggish market. Cleveland’s affordability, however, remains attractive compared to other regions, aided by job growth and lower home prices relative to the national average, reshaping the city’s perception in the housing landscape.
Cleveland is currently ranked second in the global housing market affordability according to a report from Redfin Real Estate. The city has attracted attention as traditional housing price limits are being redefined, with home listings approaching the $500,000 mark.
With the average home price in the U.S. now reaching $440,000, and starter homes nearing $300,000, the affordability landscape has changed drastically since 2014 when the typical home sold for just $159,000. Back then, spending $500,000 on a house was largely reserved for high earners, and starter homes averaged around $101,000.
The increase in home prices has made homeownership significantly less attainable for many families. This year, the housing market has been characterized as sluggish, with slower activity in what is traditionally the busy spring and summer buying seasons.
In Cleveland, homes listed near the $500,000 threshold exhibit a range of options. Notable examples include:
- 13532 Elbur Ln, Lakewood, OH: $499,500, 6 bedrooms, 3 bathrooms, 3,284 sq. ft.
- 28744 Woodmill Dr, Westlake, OH: $500,000, 5 bedrooms, 3 bathrooms, 3,026 sq. ft.
- 2165 Stony Hill Rd, Hinckley, OH: $499,900, 5 bedrooms, 3 bathrooms, 2,716 sq. ft.
- 4872 Leavitt Rd, Lorain, OH: $500,000, 5 bedrooms, 3 bathrooms, 1,837 sq. ft.
- 10044 Franchester Rd, Burbank, OH: $499,900, 5 bedrooms, 2 bathrooms, 2,496 sq. ft.
- 20930 Mastick Rd, Cleveland, OH: $499,900, 4 bedrooms, 2.5 bathrooms, 2,048 sq. ft.
- 4212 Bailey Ave, Cleveland, OH: $500,000, 3 bedrooms, 3.5 bathrooms, 1,880 sq. ft.
- 25805 Fairmount Blvd, Beachwood, OH: $499,900, 2 bedrooms, 2.5 bathrooms, 2,884 sq. ft.
According to a report by Chapman University, Pittsburgh, PA, holds the title of the most affordable major housing market globally with a median multiple of 3.2. Cleveland follows closely with a median multiple of 3.3, indicating a favorable relative affordability. In contrast, the median multiple across the U.S. has increased to 4.8 in the third quarter of 2024, up from 3.9 in 2019.
The affordability in Cleveland and Pittsburgh can be attributed to lower home prices relative to other regions and their slower population growth. This has enabled these cities to maintain competitive housing prices in the face of rising overall market trends across the U.S.
Furthermore, the state of Ohio is experiencing a revival in manufacturing and job growth, contributing to the growth of its housing market. Recently, Cleveland has seen substantial year-over-year price gains in home values, reaching double digits, as demand for affordable housing continues to rise in the region.
These trends are reshaping perceptions of Cleveland as a viable option for affordable housing amidst a challenging national housing market. The push towards advanced manufacturing in Ohio plays a critical role in the ongoing growth of the Cleveland housing market, making it a city of interest for potential homeowners.
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Additional Resources
- Cleveland.com: Cleveland Ranked 2nd Most Affordable Housing Market
- HousingWire: Ohio Housing Market Revival
- Realtor.com: Cleveland OH Market Report
- New York Post: Affordable Housing Markets Now Expensive
- Ohio Capital Journal: Wall Street is Killing the Housing Market
- Wikipedia: Cleveland
- Google Search: Cleveland housing market
- Google Scholar: Cleveland housing market
- Encyclopedia Britannica: Cleveland, Ohio
- Google News: Cleveland housing
Author: STAFF HERE CLEVELAND WRITER
CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton
