Cleveland is ranked as one of the best places to buy a rental property this year for investors seeking a balanced blend of cash flow and appreciation. Home values have increased nearly 23% year over year as of December 2021, according to Zillow, and many of the best neighbourhoods in Cleveland have more residents who rent rather than own.
Although Cleveland used to be known as a manufacturing town, the economy has evolved into a well-balanced blend of high-tech, service, and blue- and white-collar employment.
Home prices in Cleveland have increased by nearly 23% over the past year, which may be one reason more people rent than own in many neighbourhoods.
In popular neighbourhoods, such as Downtown Cleveland, over 90% of homes are occupied by renters.
Although housing prices have increased, popular neighbourhoods like North Collinwood and South Broadway still have median home sale prices of less than $100,000.
A recent study by the Cleveland Foundation revealed that Cleveland has a fast growing population, including recent graduates. According to Zumper (as of February 2022), 55% of the housing units in Cleveland are renter-occupied, with rents for 3-bedroom homes up 12% year over year.
Cleveland is home to over 2 million residents living in 40 neighbourhoods, so it can be difficult to know where to look first.
To ease your search, Global Investments have listed 10 of the most popular suburbs of Cleveland that investors should seriously consider when properties become available. Specific data on each neighbourhood comes from Realtor.com, Niche.com, and Redfin as of December 2021 :
Old Brooklyn
Located south of Downtown Cleveland, Old Brooklyn is a highly ranked good neighbourhood for investors. The neighbourhood a very desirable area in Cleveland where new construction single family homes fetch over $400,000
Old Brooklyn’s most notable landmark, the Cleveland Metroparks Zoo is a 145-acre park and is one of the 16 nature preserve reservations of the Cleveland Metroparks system.
Population : 32,813
Median sale price : $133,500
Change in sales price (year over year) : up 11.3%
Renter-occupied households : 44%
Median household income : $41,233
ZIP codes : 44109, 44144, 44134
North Collinwood
North Collinwood is a unique Cleveland neighbourhood situated on the shores of Lake Erie. Residents enjoy miles of parks along the lake bluffs, which are adjacent to streets lined with beautiful old homes and charming cottages. North Collinwood’s commercial district has become a burgeoning artists’ colony, with the transformation of Waterloo Road and the growing Waterloo Arts and Entertainment District, a highly demanded area for investors :
Population : 16,602
Median sale price : $128,000
Change in sales price (year over year) : up 6.0%
Renter-occupied households : 59%
Median household income : $31,646
ZIP code : 44110
South Collinwood
The South Collinwood neighbourhood is a historical area on the East Side of Cleveland, Ohio. Originally a village in Euclid Township along the lakefront, prices have increased considerably due to the popularity and proximity of North Collinwood :
Population : 10,076
Median sale price : $60,000
Change in sales price (year over year) : up 21.4%
Renter-occupied households : 62%
Median household income : $26,569
ZIP codes : 44110, 44119
Glenville
Glenville is a popular neighbourhood on the East Side of Cleveland. To the north, it borders the streetcar suburb of Bratenahl and the Cleveland Memorial Shoreway. Glenville is very popular for renters due to the proximity of The University Circle. With its neighbouring town “ Hough “ Glenville has some of the nicest large detached single family homes available in Cleveland.
Population : 14,456
Median sale price : $67,500
Change in sales price (year over year) : up 9.9%
Renter-occupied households : 57%
Median household income : $31,391
ZIP code : 44108
South Broadway / Slavic Village
Located south of the city along I-77, the South Broadway neighbourhoods home prices are relatively affordable, and more residents rent than own. This area has been a hotspot for new build projects. Many houses were abandoned back in 2007 and since then been removed one by one. Capital appreciation in this area has been significant and investors willing to look long term will not be disappointed.
Population : 16,415
Median sale price : $71,000
Change in sales price (year over year) : up 34.0%
Renter-occupied households : 55%
Median household income : $26,986
ZIP codes : 44105, 44109, 44125, 44127
Edgewater
Edgewater is located along the lakefront, adjacent to the Detroit-Shoreway neighbourhood and just west of Downtown. Home to Edgewater park which features 9000 feet of shoreline, dog and swim beaches, boat ramps, fishing pier, picnic areas and grills. The neighbourhood is highly rated and has a very high percentage of renters:
Population : 8,873
Median home value : $214,400
Change in sales price (year over year) : up 5.4%
Renter-occupied households : 73%
Median household income : $42,703
ZIP code : 44102
Detroit-Shoreway
Located between Edgewater and Ohio City, the Detroit-Shoreway neighbourhood is ranked as one of best neighbourhood in Cleveland and It also has a high percentage of renter-occupied households. The Gordon Square Arts District is the hub of growth in this west Cleveland neighbourhood. life is centred around its anchor building—the Gordon Square Arcade, the cultural and artistic centre of western Cleveland.
Population : 16,303
Median sale price : $246,000
Change in sales price (year over year) : up 20.6%
Renter-occupied households : 64%
Median household income : $32,167
ZIP codes : 44102, 44109, 44113
West Boulevard
The West Boulevard neighbourhood is located just south of the I-90/Northwest Freeway, adjacent to the popular Jefferson neighbourhood. Bordering on popular neighbourhoods such as Edgewater, Detroit Shoreway, Clark-Fulton & Brooklyn. The area has a dense urban feel, and is another neighbourhood where more people rent than own.
Population : 17,070
Median sale price : $108,000
Change in sales price (year over year) : up 22.0%
Renter-occupied households : 54%
Median household income : $35,441
ZIP codes : 44102, 44111
Mount Pleasant
Mount Pleasant is a neighbourhood on the East Side of Cleveland, Ohio. It borders the neighbourhoods of Buckeye–Shaker and Buckeye–Woodhill to the north, Kinsman to the west, Union–Miles Park to the south, and the suburb of Shaker Heights and the Lee–Harvard neighbourhood of Cleveland’s Lee–Miles area to the east.
Population : 16,791
Median sale price : $ 70,500
Change in sales price (year over year) : up 7.6 %
Renter-occupied households : 50%
Median household income : $30,288
ZIP codes : 44104, 44105, 44120, 44128
Cleveland Heights
Cleveland Heights is a suburb of Cleveland located east of the city and has a mixed urban-suburban feel, Cleveland Heights is in Cuyahoga County and is one of the best places to live in Ohio. Property prices here are a little higher than the surrounding suburbs but still a great place to invest if the right property becomes available.
Population : 44,571
Median sale price : $172,000
Change in sales price (year over year) : 24.2%
Renter-occupied households : 45%
Median household income : $57,768
ZIP code : 44118
There are many other suburbs of Cleveland that did not make the list that deserve a mention. Should you have any questions relating to any of the above or if you would like to have a call with one of our experts, please email the team at :
invest@globalinvestmentsincorporated.com
