Hello, Cleveland! For this week’s In the Know we’re delving into the vibrant real estate landscape of the Forest City with The Agency Cleveland‘s Managing Partners, David Ayers and Nick Zawitz, shedding light on what distinguishes this market and why it’s attracting a surge of new buyers.
“I believe that Cleveland—and really all of the Midwest—is the next real estate boom,” says Nick. “We are seeing spikes in demand across all price points and I really do not see this slowing down!”
From its diverse neighborhoods to its burgeoning economy, discover why Cleveland stands out as a prime destination for real estate investment and homeownership.
Who is buying property in Cleveland right now?
Nick: We are seeing all types of buyers purchasing property in Cleveland. I would say we are seeing a surge in out of state investors looking for a great cap rate which you can find in the Cleveland area as well as young couples starting a family or out of state families that are wanting to get into a great suburb.
David: One trend we’ve seen for the last few years is that many out of state professionals who grew up in the region are returning to their roots after building their careers in larger metropolitan areas.
It’s like a boomerang effect. People put 10-15 years into city living, but when they’re ready to start a family, they want to invest in a community that reminds them of their own childhood. At the same time, we’re seeing many professionals relocating to the Cleveland area for their careers.
The continued expansion of The Cleveland Clinic attracts healthcare professionals to the region each year, and other business expansion – including the new Sherwin-Williams headquarters that’s currently under construction downtown, is continuing to bring in high level professionals to the region.
What Cleveland neighborhoods are attracting buyers most right now?
Nick: It’s pretty spread out but we are seeing booms in trendy neighborhoods within Cleveland like Ohio City and Tremont which have undergone a renaissance of sorts. On the west side of Cleveland, Lakewood and Rocky River remain hot spots because of their restaurants, shopping, and proximity to downtown Cleveland.
On the east side of Cleveland, white collar professionals and the intellectual circuit tend to choose historical Shaker Heights or trendy Cleveland Heights for their proximity to University Circle and downtown while other buyers flock to the Chagrin Valley Area.
What is attracting them to these areas?
Nick: When you compare Northeast Ohio to other areas of the country, Cleveland offers affordable housing on varying lot sizes at all price points which becomes very attractive to all types of buyers!
Quality of life is another reason due to an eclectic mix of urban amenities, recreational activities, and national and local park access. It’s an easy road trip to other major cities, including Pittsburgh, Detroit, Columbus, and even Indianapolis or Chicago. Job opportunities in the region also make it attractive to buyers due to several fortune 500 companies being headquartered here as well as one of the best health systems in the world!
David: Especially compared to larger metropolitan areas, Cleveland offers a high quality of life with abundant amenities at an accessible price point. Homeownership is attainable for many young professionals who would be priced out of larger cities, and we’re seeing a lot of commercial development in the downtown and near westside neighborhoods in amenities that appeal to the younger buyer—lots of nightlife, art galleries, and upscale dining options—plus many quirky local gems like artist collectives, pop-up boutiques, and indie music venues that give the city a unique, local flavor.
How have these areas evolved over the last few years since the pandemic, and what are buyers seeking in luxury homes now?
Nick: In the Cleveland area there has been this trend towards more suburban and rural living since the pandemic due to a rise in remote workers—more space, amenities, and land. Luxury homebuyers are now placing higher value on amenities such as home offices, private gyms, broader outdoor living space, and smart homes have been booming all in a close proximity to the urban conveniences.
David: Pre-pandemic, many homeowners across the board were interested in proximity to amenities—school, work, parks, restaurants and cultural events. In the last few years, we’ve seen a shift to bring these amenities inside the walls of the home.
It’s not as common to see a high-end development boast a community fitness center and pool. High end buyers are seeking out homes with luxurious, resort-style amenities on their own property, with enough space for extended family. We’ve also seen an increased demand for home offices, homework stations for kids, and additional land. There’s been a trend toward self-sufficiency, so things like garden beds, greenhouses, and even facilities for livestock have been getting increased attention from buyers across all price points.
Is there anything noteworthy about the Cleveland market right now? Any new developments, or an increase in buyers or renters from a certain region?
Nick: There is a lot of talk and planning for new development both in the downtown area including several new mixed-use skyscrapers and luxury waterfront properties as well as several new single-family luxury developments in the suburbs with all high-end amenities! This is all due to the increase in the home buying demand in the Cleveland market.
David: There’s been renewed interest from city planners in revitalization across the board, not only in the actual city of Cleveland, but in the national perception of the city, specifically to attract younger residents, especially in the tech sector.
We’re seeing so much more interest in developing urban green spaces, recreational amenities along the lake, and public art projects that make Cleveland feel fresh, hip, and exciting.
The city is currently investing in a $60M project along the Cuyahoga River to prevent erosion and transform the hillside river bank into a beautiful public park, all positioned within a short distance of four of the area’s most robust urban neighborhoods. The Cleveland Metroparks have created incredible recreational amenities across the region, and are currently working with other community partners on securing grants for a huge, 20 year program to build a man-made breakwall along the Lakefront to protect biodiversity in the region, expand recreational amenities, and protect the shoreline.
These are the types of projects we’ve seen in places like New York and Chicago, and they tie into the values of many younger buyers who want to live in cities that invest in sustainability, environmental protections, and community development.
Do you have any stats or data about the market over the past year that are notable?
Nick: Cleveland has been ranked in the top ten housing markets two years in a row! Home values jumped in some areas by as much as 50%! The average in the luxury market jumped 22% yet it’s still affordable. Where can you purchase a 8,000-sqaure-foot property that is all high end with acreage for under $2,000,0000? It is such a value, and the country is starting to take a real notice!
What are your predictions for real estate in Cleveland? What can we expect to see this year and into the future?
Nick: I believe that Cleveland and really all of the Midwest is the next real estate boom. We are seeing spikes in demand across all price points and I really do not see this slowing down! There is a great shift in the country that started a few years back and with what Cleveland and other midwest cities have to offer, I really do not see this slowing down anytime soon which is why we are doubling down on The Agency and the city because the future is bright on the lake!
David: Cleveland is poised for tremendous growth over the next few decades. We have abundant green space, world-class cultural amenities, and a renewed interest in revitalization, all along the coast of Lake Erie. This is thanks to many long standing community movers and shakers who have been advocating for this kind of development in the city for years.
This renewed focus on community development, sustainability, and arts and culture is already gaining momentum in changing our perception of the city, and its value, both locally and across the nation.
To learn more about buying property in Cleveland, contact David Ayers at david.ayers@theagencyre.com or Nick Zawitz at nick.zawitz@theagencyre.com. Browse available listings in Cleveland here.
