The buckeye trees that once blanketed Ohio’s rolling terrain have mostly given way to residential and commercial developments. Ohio, at the heart of the Great Lakes region, forms part of America’s heartland. It is here that you can come to live the authentic American experience unchanged by dramatic growth in the state’s bustling metropolitan areas. In recent years, these metro areas have been viewed as real estate hot spots due to the tremendous growth of property values attributed to a combination of factors, including increased demand, lower number of available units and sustained interest in the area’s amenities.
High Points for Ohio’s Socioeconomic Environment
The Buckeye State is strategically located at the crossroads of the U.S. with excellent connections by land and air to the rest of the country. Five interstate highways funnel motorists through the state and beyond via buses on the regional transit system and rail services. A significant part of train services are used for freight movement, but Amtrak operates passenger trains on the Cleveland, Toledo and Cincinnati routes. With 175 public airports, including five international airports, the state is well equipped to handle air traffic and freight to and from the state.1
The strength of its manufacturing industries along with health care and the services sectors ensure a diverse economic base that bodes well for stable jobs growth. Big corporations with corporate homes in the Ohio area include:
- Cleveland Clinic
- Cardinal Health
- Nationwide Financial Services, Inc.
- Progressive Group of Insurance Companies
- Sherwin-Williams
- First Energy Corp.
- Goodyear Tire & Rubber Company
- Key Bank
The tax laws are rated as corporate friendly with special rates for high-income earners with incomes of $200,000 and above.2 Similar laws favoring higher-income brackets exist in only nine other states.
The talent pool is typically diverse and abundant where employment opportunities abound, which is the case in the Buckeye State. The state boasts of a 2 million-strong, multicultural workforce, many of whom graduated from one of the 29 in-state colleges and universities.3
Sports and recreation play significant roles in the Ohioan lifestyle. The state is represented in virtually every national league, ensuring a robust sports sector that generates billions in annual revenues for the tourism, hospitality, restaurant and marketing sectors. These teams are a great source of pride for the locals:
- Cleveland Cavaliers for the National Basketball Association
- Cincinnati Reds for Major League Baseball
- Cincinnati Bengals and Cleveland Browns for the National Football League
- Columbus Blue Jackets for the National Hockey League
- Columbus Crew for Major League Soccer
Housing Trends and Hot Spots
Like much of the nation, the housing market in the Midwest was in the doldrums after the recession. However, it has since shown a strong resurgence with home prices rising by as much as 10 percent in 2017 alone. Industry experts expect the upward trend to continue with property values growing by an average of 4.6 percent by 2019.4
Franklin County
Franklin County has the largest population in the state. The county is home to Ohio State University, which is one of the largest postsecondary institutions in the U.S. with enrollment close to 60,000 in the Columbus campus alone. The county seat is also located in Columbus.
The housing sector in Franklin County has been a sellers’ market for a while. Home prices have jumped 10.4 percent compared to the same period last year with median prices growing by 9.3 percent.5 Inadequate supply of available homes for sale has exerted upward pressure on prices so much so that houses are selling in six weeks, which is about half the time it used to take to sell a house in this area.
A report by industry analyst Attom Data Solutions indicated that wages of Franklin County residents have kept pace with rising housing costs. Prospective homeowners need an annual income of $48,176 to buy a house, but the average wage for this area was placed at $54,184. Additionally, rents have risen by 3.4 percent from last year, driving renters to consider the buying option. Affordable housing stock is drawing home buyers to Franklin County and will continue to do so for the foreseeable future.6
Auction.com, an online marketplace for real estate, currently has a large number of homes available for purchase through their unique selling process. The site has at least 150 units in the pipeline in Franklin County at any given time. Most of these properties are within Columbus, so buying investment property here makes sense because this is an area where the housing market is expected to remain active even in the face of the inevitable market corrections.
Cuyahoga County
Cuyahoga County is second to Franklin County when total population is considered. The county seat is located in Cleveland, which has a number of prominent colleges, including Case Western Reserve, the Cleveland Institute of Art and the Cleveland Institute of Music. A number of hospitals, health facilities and art institutions are located in Cleveland and adjacent areas.
The average household income is placed at $51,000 while home prices average $103,600 which is 45 percent below the national average.7 It’s not surprising that this area has earned a series of accolades, some of which are listed here:
- Topped the CNBC list of “Best City to Buy Home for Best Rental Return”
- Placed 10th in Business Insider’s “Best City for First Time Home Buyers”
- Placed 4th in Forbes’ list of “Cities Where Your Paycheck Will Go the Furthest”
- Placed 84th in U.S. News’ list of “Best Places to Live”
If you are considering investment property in this area, the good news is that you can still find some affordable properties that can easily be added to your revenue-generating portfolio. Browse the property listings at Auction.com to discover tremendous potential in top and mid-tier neighborhoods. This is a good strategy to commit your investment dollars to something with a high-growth potential. Available properties for Cuyahoga County and Cleveland are spread out over the area with some waterfront units available.
Hamilton County
Hamilton County is nestled in the southwest corner of the state, sharing a border with Kentucky counties. It has the third highest population in the state, and the county seat is located in Cincinnati. The median household income in this area is about $56,000 with unemployment rate at 4.7 percent.7
The median home price of $112,000 is 40 percent below the national average, which bodes well for those seeking an investment property in a market where the upside potential of a purchase could be anywhere from $40,000 to $80,000.8
It pays to know a few insider secrets when it comes to real estate investments. Consider the Hamilton County properties listed on Auction.com to understand the upside potential of real estate especially when purchased at the right price.
Foreclosure Properties as Portfolio Boosters
Savvy investors understand that when it comes to real estate, the profit is made when it is bought rather than when the property is sold. This means that it is crucial to buy the property at the right price, whether it is intended for personal use or as an investment property. Auction.com is a leader when it comes to foreclosure real estate transactions. Browse available listings by county at Auction.com to find Ohio real estate that may boost your profit potential significantly.
The information in this blog post is being provided for informational purposes only and not for the purpose of providing legal or real estate investment advice, and no liability is assumed by Auction.com (or Ten-X, LLC) with respect to such information.
Sources:
1Ohio International Airports https://www.wrightrealtors.com/links/airports/ohio.htm
2,3,4https://clevelandbricks.com/heres-why-you-should-invest-in-ohio-real-estate-in-2018/
5,6http://www.columbusmonthly.com/lifestyle/20170627/real-estate-central-ohios-housing-market-gold-rush
7,8https://www.realwealthnetwork.com/markets/cincinnati-ohio/
