The Ohio housing market is the quintessential Midwestern market. It’s affordable, profitable, and accessible to many real estate investors. One of the best places to invest in the Ohio housing market is Cincinnatti. Before you make a move, however, you should know the current state of the market in Cincinnati, Ohio and how it will perform in 2020. We’ll analyze the Cincinnati real estate market by looking at:
- Cincinnati housing market data
- 5 Cincinnati real estate market trends
- Data for the best neighborhoods in Cincinnati for traditional and Airbnb real estate investing
Related: Ohio Real Estate Market: 6 Cities to Invest in Multifamily Homes
Cincinnati Real Estate Market: Mashvisor’s Data
So, what’s it like to invest in Cincinnati real estate? The best way to answer that is through data. Where can you obtain real estate data? Right here, with Mashvisor! Mashvisor is the top source of real estate analytics. Our investment tools allow you to analyze any rental market. You’ll also be able to analyze any investment property of choice. Here’s a taste of Mashvisor’s data, focusing on Cincinnati real estate investing:
- Median Property Price: $307,410
- Price per Square Foot: $153
- Price-to-Rent Ratio: 21
- Traditional Rental Income: $1,243
- Traditional Cap Rate / Cash on Cash Return: 1.3%
- Monthly Airbnb Rental Income: $2,217
- Airbnb Cap Rate / Cash on Cash Return: 3.4%
- Airbnb Occupancy Rate: 50.6%
CLICK HERE to learn about Mashvisor’s tools!
5 Cincinnati Real Estate Market Trends
Why should you invest in Cincinnati? Its real estate market trends will answer this question. There are many factors influencing the Cincinnati real estate market 2020. However, these five trends are the most important.
1. Traditional and Airbnb Cincinnati rental properties will be lucrative
Profitability is the name of the game in real estate. In this regard, Cincinnati real estate is excellent. As seen previously, the average Cincinnati investment property is lucrative. This is also the case for both traditional and Airbnb Cincinnati properties. However, Airbnb Cincinnati is the more profitable strategy. The average Airbnb rental income is much higher than the average traditional rental income. Likewise, the city’s Airbnb return on investment (ROI) is higher than the average traditional ROI. Nonetheless, both rental strategies will be profitable in 2020. It is also worth noting that these are merely averages. In the right neighborhoods, Cincinnati real estate investors will likely generate more in profit in 2020.
Related: The Most Profitable Types of Real Estate Investment for 2020
2. Cincinnati home prices will be affordable
As a true Midwest housing market, the Cincinnati real estate market is also very affordable. According to Mashvisor, its median property price is $307,410. This is considerably lower than the national median. What’s interesting, however, is that it is above the state median. The median Ohio property price is $206,347. While this is the case, Cincinnati is still a cheap market and in 2020, you’ll be able to find affordable Cincinnati houses for sale.
3. Real estate properties will continue to appreciate in value
As previously mentioned, Cincinnati investment properties are cheap. But that isn’t to say that the market has a low appreciation rate. According to NeighborhoodScout, Cincinnati’s 10-year appreciation rate has been average. During this time, Cincinnati home prices increased by 25.5%. However, Cincinnati’s recent rates have been higher. For instance, the 2019 rate was 6.7%, according to Zillow. For 2020, Zillow projects a 2.6% increase in home prices. Cincinnati’s appreciation rate exists in a perfect sweet spot. For property owners, they can enjoy an increase in their property value. For property buyers, the increase is not too drastic. They will still be able to buy an income property in Cincinnati at an affordable price.
4. Airbnb will be legal in the Cincinnati real estate market in 2020
Airbnb legality has been a hot topic in recent years. So, is Airbnb legal in the Cincinnati real estate market? The quick answer is yes! Most importantly, non-owner occupied rentals are legal for Airbnb. Hosts must also register Cincinnati short-term rental properties with the city. In addition, a 7% Short Term Rental Excise Tax must be paid.
Generally speaking, Cincinnati Airbnb laws are not restrictive. However, there has been controversy with the city’s Airbnb regulations. Namely, STRs with more than four units are considered commercial properties. As a result, these properties are subject to commercial code compliance. There is no projected change in this rule in 2020.
Related: 20 Cities with No Airbnb Legal Issues in 2020
5. Cincinnati rental properties will be in high demand in 2020
Investing in Cincinnati real estate rentals will be smart as they will be in demand in 2020. There are many reasons why. For starters, the price-to-rent ratio of the market is 21. This means that renting a property is more affordable than buying one for the average resident. So, it is no surprise that 62% of residents live in a Cincinnati rental property.
Furthermore, the city’s economy has shown great growth recently. Household income has increased by 11.9% over the last year. As a result, the Cincinnati real estate market has had stable population growth leading to an increase in the renter pool.
This high demand, while positive, does result in competition between rental property buyers. The Cincinnati real estate market is a hot seller’s market.
The Best Neighborhoods in Cincinnati for Traditional Rental Properties
The real estate market trends are mostly positive, making the city a great place to invest. But where should you invest in Cincinnati? According to Mashvisor, these are the best places for a traditional Cincinnati real estate investment:
Northside
- Median Property Price: $214,532
- Price per Square Foot: $117
- Price-to-Rent Ratio: 12
- Traditional Rental Income: $1,504
- Traditional Cap Rate / Cash on Cash Return: 3.7%
College Hill
- Median Property Price: $125,498
- Price per Square Foot: $86
- Price-to-Rent Ratio: 10
- Traditional Rental Income: $1,017
- Traditional Cap Rate / Cash on Cash Return: 2.8%
Linwood
- Median Property Price: $174,950
- Price per Square Foot: $94
- Price-to-Rent Ratio: 14
- Traditional Rental Income: $1,035
- Traditional Cap Rate / Cash on Cash Return: 2.4%
The Best Neighborhoods in Cincinnati for Airbnb Rental Properties
What about Airbnb investing in Cincinnati? Mashvisor’s data shows that these neighborhoods are the best of the best:
CUF
- Median Property Price: $571,317
- Price per Square Foot: $1,304
- Price-to-Rent Ratio: 49
- Monthly Airbnb Rental Income: $2,269
- Airbnb Cap Rate / Cash on Cash Return: 7.0%
- Airbnb Occupancy Rate: 54.1%
Westwood
- Median Property Price: $132,623
- Price per Square Foot: $83
- Price-to-Rent Ratio: 10
- Monthly Airbnb Rental Income: $2,855
- Airbnb Cap Rate / Cash on Cash Return: 6.3%
- Airbnb Occupancy Rate: 45.4%
College Hill
- Median Property Price: $125,498
- Price per Square Foot: $86
- Price-to-Rent Ratio: 10
- Monthly Airbnb Rental Income: $1,775
- Airbnb Cap Rate / Cash on Cash Return: 6.1%
- Airbnb Occupancy Rate: 38.8%
All in all, the Cincinnati real estate market is a top market in Ohio. It is also one of the best markets in the Midwest for 2020. To start searching for Cincinnati homes for sale, CLICK HERE! You’ll be able to start your FREE 7-day trial with Mashvisor!
