The US real estate market is home to a variety of markets for traditional long-term rentals. Many markets differ in their real estate market trends which include property prices, rental income averages, appreciation rates, and economic growth. Some state markets, such as the Ohio housing market, maintain a healthy balance between these real estate market trends. To learn why you should invest in the Ohio housing market and what the 5 best cities to invest in Ohio real estate are, keep reading this blog!
Why You Should Invest in the Ohio Housing Market
The most noteworthy trend in the Ohio real estate market is its affordability. If you are planning on buying an investment property to implement the traditional rental strategy, it won’t require a massive initial investment as it would in many markets across the nation. The state median property price is $217,130, according to Mashvisor’s investment property calculator, which you can learn about by clicking here. This is much lower than the national median of $308,000.
Not only does the Ohio housing market have low property prices, but it also has one of the lowest costs of living in the US. According to a study by the US News and World Report, Ohio has the 11th lowest cost of living in the nation. According to the study, Ohio is one of the cheapest states to buy a house in 2019 due to its cost of living and property prices. Even so, there is healthy demand in the Ohio rental market as tenants are attracted to the low cost of living as well.
For some markets, affordability comes at the expense of profitability. Fortunately, this isn’t the case with the Ohio real estate market. As you will see soon, the average rental income and return on investment for a traditional Ohio real estate investment in the state’s best cities are very high. The average ROI in these cities ranges from 4.9 to 8.6 percent. Keep in mind that these figures are only averages. Ohio real estate investors can earn more in these two metrics with an Ohio investment property if they use tools like Mashvisor’s Property Finder. This tool will help you find investment properties in your location of choice that have the highest ROI. Sign up for free now to try it out.
The Ohio housing market forecast is also bright due to its appreciation rates. While the market does not have the highest appreciation rates in the US, they are still beneficial to Ohio real estate investors. According to NeighborhoodScout, properties in the Ohio housing market appreciated by 5.63% during the last 12 months.
The 5 Best Cities in Ohio for Real Estate Investing
So, what are the best cities to invest in real estate in this market? According to Mashvisor, the best cities for Ohio real estate investing are Colerain Township, Dayton, Hudson, Madison, and Marion.
- Median Property Price: $185,533
- Price per Square Foot: $98
- Price-to-Rent Ratio: 7
- Rental Income: $2,247
- Cap Rate / Cash on Cash Return: 8.6%
Colerain Township is the best place to invest in the Ohio housing market. As seen from Mashvisor’s data, the average ROI for Ohio investment properties in the area is a whopping 8.6 percent. As is typical of the Ohio rental market, Colerain Township has an affordable median property price. The median property price is slightly over $185,000, which is lower than the state median. The cost of living in Colerain Township is also notable, as it is 6.5% lower than the US average.
- Median Property Price: $98,266
- Price per Square Foot: $54
- Price-to-Rent Ratio: 9
- Rental Income: $952
- Cap Rate / Cash on Cash Return: 5.1%
Another top investment destination in the Ohio real estate market is Dayton. Out of all the best cities in the state, Dayton has the lowest median property price at less than $100,000. Its cost of living is also remarkably low; it is 24.9% lower than the US average. Its cost of living is also the 8th lowest in the entire country. Demand is also high in Dayton, as more than half of the city’s residents reside in Ohio investment properties. Due to all of these factors, Dayton is not only one of the best cities in the Ohio housing market, but it is also one of the best cities for real estate investment 2019.
- Median Property Price: $404,884
- Price per Square Foot: $144
- Price-to-Rent Ratio: 10
- Rental Income: $3,320
- Cap Rate / Cash on Cash Return: 5.1%
Hudson is somewhat of an outlier in the Ohio housing market. Its median property price is almost twice the state median. Despite this high median price, its rental income and return on investment averages fall in line with the state’s statistics. Unlike most Ohio cities which are considered very hot seller’s markets, Hudson is considered ‘warm’ on the buyer’s/seller’s market scale. The combination of these factors makes buying a house in Ohio in Hudson a profitable and successful real estate investment.
- Median Property Price: $166,418
- Price per Square Foot: $97
- Price-to-Rent Ratio: 8
- Rental Income: $1,729
- Cap Rate / Cash on Cash Return: 5.0%
Madison is the quintessential city in the Ohio housing market. Its property price is well below the state median. Its rental income average is above $1,700. Return on investment averages to 5 percent in the city. Its cost of living is 10.2% lower than the US average. However, unlike most cities in the Ohio real estate market, Madison is considered a neutral market. This, along with the city’s other highlights, makes the market primed for buying Ohio houses for sale.
- Median Property Price: $127,579
- Price per Square Foot: $77
- Price-to-Rent Ratio: 10
- Rental Income: $1,037
- Cap Rate / Cash on Cash Return: 4.9%
Marion, like most cities in Ohio, is affordable, profitable, and in demand. Its cost of living is 28.8 percent lower than the US average, which is the lowest of the cities on this list. Appreciation is also high in Marion. The appreciation rate of the last 12 months was 4.28%, which is higher than 50 percent of other cities and towns in the Ohio housing market.
All in all, Ohio investment properties are some of the best real estate investments in 2019. These properties are affordable, profitable, appreciable, and in demand. To find out which neighborhoods to invest in the Ohio housing market and how to analyze your potential Ohio rental properties, click here to start your 14-day FREE trial with Mashvisor’s investment property calculator!