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Why Cleveland is still one of the HOTEST markets for investors

Cleveland, a city with a population of around 380,000 and a huge metro area housing 2 million residents, is still one of the best hotspots for real estate investors. The city’s unique combination of affordability, growth potential, and economic stability offers a compelling case for both local and overseas investors. A Strong Economic Foundation Cleveland’s economy is anchored by key industries such as manufacturing, healthcare, and finance. The city is home to world-renowned institutions like the Cleveland Clinic, University Circle, and University Hospitals, which not only contribute to the local economy but also provide a level of stability that is highly attractive to investors. The Cleveland Clinic, the city’s largest employer, with 38,000 employees, underscores the healthcare sector’s recession-proof nature, making real estate investments in the area particularly appealing. Beyond healthcare, Cleveland is growing as a financial hub, with major companies like Progressive Insurance, Key Bank, and Amazon establishing significant presences. Amazon, for instance, has acquired 2.3 million square feet of office space in the city, while Sherwin-Williams, the global paint manufacturer, is building its new global headquarters and has pledged to invest over $600 million in the area. Real Estate Market Overview   Cleveland’s real estate market offers a unique combination of affordability and growth potential. The average price for a single-family home in 2024 is approximately $211,000, which is 39% lower than the national average. Even more striking, the overall average home price is just $140,000, making it a whopping 60% below the national average. This significant affordability is one of the primary reasons Cleveland has become a hub for investors seeking low-entry housing with the potential for growth and steady cash flow. In certain neighborhoods like North and South Collinwood, prices are even lower, with homes available from $80,000. Despite recent double-digit appreciation—Cleveland home prices rose by an average of 26% between 2023 and 2024—the market remains accessible. Homes are selling faster as well, with average days on market dropping from 41 to 31 earlier in 2024. However, the market’s rising foreclosure rate, currently the highest in the country at 0.6%, has also attracted the attention of savvy investors looking for opportunities to buy properties at a discount. A Thriving Rental Market The rental market in Cleveland is equally promising for investors. In key investment neighborhoods, the average rent is $1,335, about 30% lower than the national average. This lower cost, combined with a favorable price-to-rent ratio of 13, makes buying more attractive than renting, signaling strong cash flow opportunities for property investors. Over the past decade, the average rent in the Cleveland metro area has increased by 39.4%, or 3.77% annually, further enhancing the appeal for buy-to-let investors. Cleveland has also led the nation in single-family rent increases over the past 10 years, with rentals rising by 9.4%. Investment Opportunities Given the market dynamics, Cleveland is ranked as the 8th hottest real estate market for 2024 by numerous top real estate platforms. With prices starting as low as $59,900 for single-family homes and duplexes available from $80,000, investors can expect net returns between 12% and 20%. The city’s combination of affordable entry points, strong rental demand, and consistent appreciation makes it an ideal environment for real estate investors looking to diversify their portfolios and capitalize on growth opportunities. Conclusion Cleveland offers a rare blend of affordability, growth, and economic stability, making it a prime destination for real estate investment in 2024. Whether you’re an out-of-state investor or an overseas buyer, Cleveland’s market dynamics present a lucrative opportunity that ticks all the right boxes. Contact us now for more information on how to take advantage of this booming market!

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Transforming Cleveland’s Riverfront: Land Bank Secures Millions for Brownfield Cleanup

Cuyahoga County is set to undergo a significant transformation as the Cuyahoga Land Bank secures $23 million in state funding to clean up and redevelop long-neglected brownfield sites. These areas, once hubs of industrial activity, have lain dormant for decades, posing environmental hazards and stalling economic growth. With this infusion of funds, Cleveland’s landscape is poised for a revival that will bring new housing, jobs, and public spaces to the community. A Legacy of Industrial Use   The sites earmarked for cleanup have deep historical roots, with some dating back nearly two centuries when Cleveland was a booming industrial center. The land on the Tower City Center side of the Cuyahoga River, now planned for Bedrock’s Riverfront Development, has been used for various industrial purposes, including paint and varnish production, oil works, and scrap iron yards. The result is a landscape riddled with contamination from hazardous materials like arsenic and lead, which must be addressed before any new construction can begin. The Cuyahoga Land Bank, officially known as the Cuyahoga County Land Reutilization Corp., has been a pivotal player in securing multiple funding awards from the Ohio Department of Development’s Brownfield Remediation Program. This program is designed to help communities reclaim hazardous properties and prepare them for new development. The Land Bank has already been active in demolishing over 1,100 blighted structures, primarily abandoned single-family homes in Cleveland and East Cleveland. However, the latest awards focus on larger, more complex industrial sites that require expert remediation. Key Projects Underway   One of the most prominent projects benefiting from this funding is the Bedrock Riverfront Development. With a $10 million grant, this downtown Cleveland project will involve the remediation of three parcels along the riverfront. These properties, currently used as surface parking lots, are contaminated with industrial pollutants. The cleanup will include removing contaminated soil, demolishing existing structures, and replacing the soil with clean fill. Bedrock Real Estate plans to transform the area into a vibrant mixed-use district featuring public recreation spaces, offices, retail outlets, and parking facilities. The redevelopment is expected to generate long-term economic and recreational benefits for the Cleveland community. Another significant project is the former National Acme site, located at the intersection of Cleveland’s Glenville and Collinwood neighborhoods. This historical machine-tool manufacturing facility has become a public nuisance due to illegal waste disposal and unauthorized demolition. With a $7.6 million award, the site will undergo extensive cleanup, including asbestos removal, waste disposal, and the demolition of remaining structures. The goal is to clear the way for new developments that can breathe life back into the surrounding neighborhoods. In Middleburg Heights, the former Sears Southland Shopping Center is also slated for redevelopment, thanks to a $5.6 million grant. This project involves cleaning up two vacant structures, including a large former department store and an automotive shop. The site will be transformed into a mixed-use development with 375 multifamily rental units, retail space, and public park areas. This redevelopment aligns with the Middleburg Heights Community Master Plan and is expected to create 400 new jobs and retain 270 existing positions. A Broader Impact on the Community   The impact of these projects extends far beyond the individual sites. The Land Bank’s efforts are part of a larger strategy to stabilize and revitalize neighborhoods across Cuyahoga County. As Land Bank President and General Counsel Gus Frangos noted, “This award will have a meaningful impact on the individual cities where we demolish blighted properties and on Cuyahoga County as a whole. We are grateful for the continual support from the State of Ohio, Governor DeWine, and the Department of Development. They have been critical partners in our work and the progress land banking has made across our county.” Demolition is a critical tool in the Land Bank’s strategy. Removing blighted properties not only improves the physical appearance of neighborhoods but also helps to restore community pride and increase property values. In East Cleveland, for example, the long-abandoned Huron Place apartment tower has been a magnet for criminal activity since the nearby Cleveland Clinic Huron Hospital closed in 2011. The Land Bank’s plans to demolish this 13-story eyesore are expected to have a transformative effect on the surrounding area, paving the way for new investment and development. Looking Ahead The cleanup and redevelopment of these brownfield sites represent a significant investment in Cleveland’s future. By turning contaminated, underutilized land into thriving communities, the Cuyahoga Land Bank and its partners are helping to reshape the city’s landscape and create opportunities for economic growth. As these projects move forward, residents can look forward to a revitalized Cleveland that honors its industrial past while embracing a more sustainable and prosperous future.

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