CINCINNATI RENTAL MARKET BY THE NUMBERS
T he Cincin- nati rental market is one of the hottest in the country today with predicted rent increases of 5.2 percent for 2017.
2014 census data indicated there were
Rents have risen since November 2010, when median rent was 35.7% $ 913 $ 1,239 Median monthly rent in Cincinnati at the end of Q3 2016 was
By comparison, national median rent at the end of Q3 2016 was
42 100
$ 1,405
“affordable” rental properties in every
At the end of Q2 2016, there were rental households in the Cincinnati metropolitan area alone. 134,878
available. Only Boston and Pittsburgh had better proportions of affordable rental housing.
in decades as of the 2010 U.S. Census, actually growing, albeit by about 1 percent a year. That incoming population holds another key to accurately view- ing the state of the Cincinnati housing market, and 2016 was a pivotal year to observe the area to see which trends held true and which predictions fizzled. The results are exciting if you own or want to own rental property in the area because a large portion of Cincinnati’s burgeoning population represents the very best of the ubiquitous Millennial population: young professionals willing to pay through the nose for the right location and an attractive living en- vironment, and as yet predominantly interested in renting rather than owning. This population not only represents huge buying (or renting) power, but also rep- resents enormous economic leverage as developers, retailers, employers and even educational institutions and government offices attempt to attract a portion of their spending budgets. A city attracting Such numbers rival those of West Coast cities and are surpassed only by Seattle (7.2 percent), Portland (6.0 percent) and Denver (5.9 percent). By compar- ison, San Francisco rents are projected to increase by 4.9 percent. Despite this, Cincinnati remains one of the most affordable markets in which to rent in the country. Here is the rental market broken down by the numbers:
Cincinnati ranked
Investors are able to acquire properties at low price points that allow for higher return after investment, according to Lima One Capital CEO John Warren. These relatively low acquisition costs make renovation to rent or flip a viable strategy for more investors.
4 TH
on HousingWire’s “Top Markets for Single- Family Rentals” in 2016.
a Millennial population is a city primed for solid rental real estate expansion. Of course, no market can rely fully on the under-35 crowd to sustain its growth indefinitely, although one could certain- ly argue that “Generation Z,” presently upperclassmen in high school or still working their way through college, will soon begin to supplement the Millen- nial generation’s effects on real estate. Further, given their likelihood of exiting their higher education with heavy debt, Gen Z’ers are likely to do so as members of the renting population in the near term. Statistically, Cincinnati is “young- er” than the rest of the country, with an average age of 37.3 years and a popu- lation of college graduates comprising nearly a third of the city’s population. So in this market, the relatively affordable real estate market and the attractive employment opportunities in the area, combined with a truly innovative music and arts scene, are making the area at- tractive to individuals of all ages seeking
gainful employment with a dash of green space, entertainment and culture. Many of those individuals will become home- owners eventually, but right now, with that limited inventory haunting the “flip side” of the region’s housing, they are far more likely to rent rather than buy. BUILDING ON DIVERSE GROWTH AND OPPORTUNITY The Cincinnati economy is character- ized by a diverse foundation of employ- ers in the professional and business sectors that not only stabilizes the eco- nomic status of the current population, but represents greater-than-national-av- erage growth year after year. As a result, rental property owners can rest in a fair amount of certainty that tenants will not only be in a position to pay their rents, but will also likely reward good rental management with multi- year stays in the property as they climb upward on their professional paths
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