Cleveland’s housing market remains a hot spot for both first-time buyers and real estate investors. With a median list price of $241,725, Cleveland offers some of the most affordable housing options in the U.S., especially compared to larger metropolitan markets. In addition, multifamily housing continues to be in high demand as the city’s economy rebounds and its real estate market evolves. This provides an excellent opportunity for multifamily investors, as well as first-time buyers looking to enter the market without the burden of high home prices.

Here’s a look at what makes Cleveland’s housing market a prime target for both investors and buyers in 2025.

1. Affordable Entry Points for First-Time Homebuyers

For first-time homebuyers, Cleveland’s housing market is a standout opportunity. With a median list price of $241,725, Cleveland is an outlier when compared to the national median price of $379,100. The city also offers an extensive number of listings under $300,000 (455 listings) and another 599 listings between $350,000 and $500,000, giving first-time buyers an affordable entry into homeownership. These opportunities are especially attractive for young professionals, families, and individuals relocating from high-cost areas.

For real estate investors, these price points translate to more affordable entry points into the market, especially for multifamily developments or single-family rental properties. With the growing demand for rental housing and the price gap between Cleveland and more expensive markets, investors have an opportunity to capture value through both rental yields and future appreciation.

2. Multifamily Housing Demand on the Rise

Cleveland’s real estate market has been increasingly favorable to multifamily investors, especially as demand for rental housing grows. The city’s economic rebound is attracting professionals in key sectors such as healthcare, technology, and manufacturing, all of which create demand for high-quality multifamily properties. With the Cleveland Clinic, Case Western Reserve University, and major employers in manufacturing and tech driving employment growth, more residents are seeking accessible and affordable rental options in the city’s downtown and surrounding neighborhoods.

GHC has already been strategically targeting multifamily housing investments, especially in areas undergoing urban revitalization. As the demand for rental housing continues to outpace supply in Cleveland, investors should be keen on acquiring and developing properties that meet this growing need.

3. Economic Revitalization Driving Housing Demand

The economic health of Cleveland plays a critical role in shaping its real estate market. Cleveland is experiencing a transformation, particularly in its industrial and tech sectors. With major investments in healthcare, tech innovation, and infrastructure, Cleveland’s economy is booming, and with it, the demand for housing.

Cleveland has seen an influx of younger professionals drawn to the city’s emerging sectors. As new jobs continue to be created, particularly in sectors like healthcare, manufacturing, and tech, demand for multifamily housing continues to rise. According to RentCafe, Cleveland ranks as one of the top cities for rental activity, with a 26% increase in rental searches in 2024, signaling strong rental demand that is expected to continue in 2025.

Multifamily housing remains a strong investment as Cleveland’s economy diversifies, and the city’s continued growth in healthcare, manufacturing, and tech presents a stable and evolving real estate market for investors.

4. Growth in Transit-Oriented Developments (TOD)

One of the key trends reshaping Cleveland’s real estate landscape is the growing emphasis on transit-oriented development (TOD). TOD focuses on the development of mixed-use communities around transit hubs to encourage walkability and reduce reliance on cars. Cleveland has been investing heavily in its public transportation network, particularly with projects like the HealthLine Bus Rapid Transit (BRT) and its ongoing expansion of light rail services. This makes areas near transit hubs highly desirable for renters and buyers alike.

Investors in the multifamily sector should pay close attention to TOD opportunities. Cleveland’s downtown and neighborhoods along major transit routes are expected to see an increase in demand for rental units and residential properties. By investing in properties near transit hubs, investors can position themselves at the forefront of a growing trend in urban development.

5. Long-Term Investment Potential in Cleveland

As the U.S. continues to experience a shift in migration patterns and economic growth moves toward urban centers, Cleveland offers long-term investment potential. According to a report from Realtor.com, Cleveland is one of the few metros where home prices remain below the national average, presenting an opportunity for investors to buy into a growing market before prices increase substantially.

Additionally, Cleveland’s relatively low cost of living compared to other cities like New York, San Francisco, and Chicago makes it an attractive market for individuals and families looking to relocate, which increases the overall demand for housing and long-term investment potential.

6. Lower Interest Rates Supporting Affordability

In addition to these favorable market conditions, recent cuts to interest rates by the Federal Reserve have played a pivotal role in boosting housing affordability across the board. As mortgage rates decline, homebuyers (especially first-time buyers) are finding it easier to enter the market. This affordability boost not only supports individual homebuyers but also encourages investment activity, particularly in multifamily housing, where rising rents and demand for urban living create attractive opportunities for investors.

According to an article from Northwest Bank, the Fed’s rate cuts are expected to continue driving down borrowing costs, creating favorable conditions for both homebuyers and investors. These lower rates are helping to alleviate some of the affordability challenges faced by buyers and renters, allowing them to secure better financing terms and access more affordable housing options in Cleveland’s market.

7. What’s Next for Cleveland’s Housing Market?

As we get into Q2, Cleveland’s housing market is primed for continued growth. Multifamily housing investments are expected to remain a key driver, especially as the city experiences an influx of residents due to its growing tech, healthcare, and manufacturing sectors. TOD and urban redevelopment projects will also continue to contribute to the demand for both residential and commercial real estate.

For investors, Cleveland presents an attractive opportunity for multifamily investments, particularly in areas with high demand for rental properties. The city’s focus on sustainability and urban revitalization, coupled with its growing economy, makes it an exciting place for real estate investments that are poised for long-term returns.

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Sources:

RentCafe, "Cities to Watch for Rental Activity in 2025" (https://www.rentcafe.com/blog/rental-market/market-snapshots/cities-to-watch-this-year/)

Realtor.com, "Top Cities for Home Listings" (https://www.realtor.com/news/trends/top-cities-home-listings/)

JobsOhio, "Ohio Achieves No. 3 Ranking in Both Overall and Per Capita Economic Development Projects" (https://www.jobsohio.com/news-press/ohio-achieves-no-3-ranking-in-both-overall-and-per-capita-economic-development-projects/)

CBRE, "U.S. Industrial Real Estate Market Outlook" (https://www.cbre.com/research-and-reports/US-Industrial-Market-Outlook)

Cleveland Fed, "Boomerang Migration: Trends in the Housing Market and Migration Patterns" (https://www.clevelandfed.org/publications/cleveland-fed-district-data-brief/2025/cfddb-20250219-boomerang-migration)