Trends & NewsCleveland Real Estate Market Trends for 2020 by Hamza Abdul-Samad December 31, 2019December 24, 2019 by Hamza Abdul-Samad December 31, 2019December 24, 2019Many real estate investors have the notion that affordability and profitability cannot coexist. This is definitely the case in overvalued rental markets. The San Francisco housing market, for instance, is the perfect example. However, if you take a look at the Midwest real estate market, you’ll learn that this idea is false. So, if are you looking to invest in affordable and profitable real estate in 2020, consider investing in Cleveland real estate! The Cleveland real estate market will make for one of the best places to invest in real estate next year.But why exactly should you invest in Cleveland real estate? And where should you invest in the Cleveland housing market 2020? Read this blog to find out!Related: Invest in the 5 Cheapest Housing Markets in 2020Cleveland Real Estate Market Trends for 2020Cleveland houses for sale will be excellent investments in 2020 for many reasons. However, there are only a few market trends that matter the most to investors. Here are the four most important Cleveland real estate market trends for 2020:Both the Traditional and Airbnb Rental Strategy Will Be ProfitableWe’ve mentioned in the introduction that the Cleveland real estate market is both affordable and profitable. This is definitely the case for traditional and Airbnb real estate investing. According to Mashvisor, the average traditional rental income in Cleveland is $1,219. As is common in many markets, Airbnb Cleveland investment properties are more profitable than their traditional counterparts. According to Mashvisor’s investment property calculator, the average Airbnb rental income in Cleveland is $1,872.However, it’s important to note that these figures are merely averages. In many of the best neighborhoods in the Cleveland real estate market (listed below), property investors will earn more in rental income. And with the high rental income, real estate investors can generate a high return on investment from Cleveland investment properties.The Cleveland Housing Market Will Have a High Appreciation RateRental income isn’t the only form of profit in the Cleveland real estate market. The market’s recent increases in real estate appreciation have increased demand for properties for sale. What’s interesting, however, is that Cleveland had not been a high-appreciating housing market until recently. In fact, Cleveland’s appreciation rate was lower than the national and Ohio real estate market averages for years. Last year, however, Cleveland properties had an appreciation rate of 2.27%, according to NeighborhoodScout. This was higher than the national average. And over the past year, the average value of Cleveland homes for sale rose by a whopping 8%, according to Zillow. As a result, property owners have enjoyed high appreciation gains. It is expected that this positive real estate trend of home value growth will continue in 2020. Therefore, we suggest investing in Cleveland real estate soon before prices rise any further.Even with the Expected Appreciation, Cleveland House Prices Will Be LowAs mentioned, cities in the Midwest real estate market are exceptionally affordable. This applies to the Ohio real estate market as a whole and most definitely applies to Cleveland. Cleveland has one of the lowest median property prices of the major US cities. According to Mashvisor’s real estate market analysis, the median price of a Cleveland real estate investment property is $157,952. This is significantly lower than the national median.Even within the market, Cleveland real estate investors can find cheaper real estate deals. According to Mashvisor’s neighborhood analysis of the Cleveland real estate market, 5 of the 7 best neighborhoods in the city have a median price that is below $200,000. Even with the rise in value that is forecast for 2020, Cleveland real estate will still be affordable.However, you should know that the Cleveland real estate market is classified as a hot seller’s market as opposed to a buyer’s market, according to Zillow. This is likely due to the combination of affordable prices and profitable real estate investments in the market. Still, with its affordable property prices, buying an investment property will not be difficult for Cleveland real estate investors in 2020.Airbnb Cleveland Will Remain Legal in 2020We’ve talked about Airbnb Cleveland and its profitability. However, we haven’t addressed an important question. Is Airbnb even legal in the Cleveland real estate market? Fortunately, the answer is yes. Airbnb has been legal in Cleveland for quite some time. Most notably, Cleveland Airbnb laws have not been restrictive towards Cleveland short-term rental properties. There are no restrictions on the use of non-owner occupied Airbnb rentals.However, there are other Airbnb regulations investors should be aware of. Airbnb hosts must obtain a business license to operate Cleveland short-term rentals. They must also pay a 5.5% Bed Tax and a 3% Transient Occupancy Tax. For more on Cleveland Airbnb laws, visit the Airbnb Cleveland Help Page.Investing in Airbnb Cleveland in 2020 will, therefore, be a great real estate investment strategy thanks to the lenient Airbnb regulations. Start your search for an Airbnb investment property in Cleveland now. Find a Profitable Airbnb Investment PropertyRelated: 20 Cities With No Airbnb Issues in 2020The Best Neighborhoods in Cleveland for the Traditional Rental StrategyWe’ve covered why you should invest in the Cleveland real estate market. So now you are probably eager to know where to purchase Cleveland houses for sale in 2020. There are plenty of neighborhoods where you can find profitable Cleveland real estate. But, we recommend investing in traditional, long-term rentals in the following neighborhoods:Industrial ValleyMedian Property Price: $427,630Price per Square Foot: $254Price-to-Rent Ratio: 13Traditional Rental Income: $2,651Traditional Cap Rate / Cash on Cash Return: 3.1%StockyardsMedian Property Price: $76,156Price per Square Foot: $55Price-to-Rent Ratio: 7Traditional Rental Income: $877Traditional Cap Rate / Cash on Cash Return: 3.0%RiversideMedian Property Price: $124,925Price per Square Foot: $103Price-to-Rent Ratio: 10Traditional Rental Income: $1,023Traditional Cap Rate / Cash on Cash Return: 2.0%CentralMedian Property Price: $125,950Price per Square Foot: $88Price-to-Rent Ratio: 11Traditional Rental Income: $990Traditional Cap Rate / Cash on Cash Return: 1.3%The Best Neighborhoods in Cleveland for the Airbnb Rental StrategyWe recommend investing in the following neighborhoods for Airbnb Cleveland:Old BrooklynMedian Property Price: $100,100Price per Square Foot: $79Price-to-Rent Ratio: 10Airbnb Rental Income: $1,968Airbnb Cap Rate / Cash on Cash Return: 5.8%Airbnb Occupancy Rate: 54.1%RiversideMedian Property Price: $124,925Price per Square Foot: $103Price-to-Rent Ratio: 10Airbnb Rental Income: $1,891Airbnb Cap Rate / Cash on Cash Return: 5.2%Airbnb Occupancy Rate: 60.2%Kamm’s CornerMedian Property Price: $161,966Price per Square Foot: $112Price-to-Rent Ratio: 13Airbnb Rental Income: $2,429Airbnb Cap Rate / Cash on Cash Return: 4.9%Airbnb Occupancy Rate: 67.6%TremontMedian Property Price: $216,000Price per Square Foot: $113Price-to-Rent Ratio: 12Airbnb Rental Income: $2,713Airbnb Cap Rate / Cash on Cash Return: 4.3%Airbnb Occupancy Rate: 61.6%In conclusion, the Cleveland real estate market will be a great investment location in 2020. Its combination of profitability, affordability, appreciation, and lenient Airbnb laws make it a hidden gem for Midwest real estate.Want to start investing in the market? Of course you do! To start searching for Cleveland houses for sale using a state-of-the-art real estate investment calculator, CLICK HERE to start your 14-day FREE trial with Mashvisor!Related: The Best Real Estate Investment Calculator of 2020 Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCleveland OHNeighborhoodOhioTraditional 0FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. 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