HOUSINGNEWS REPORT
RUST BELT RENTAL TOUR
AVERAGE AGE OF HOME (YEARS)
45
U.S. AVERAGE
INDIANAPOLIS (MARION COUNTY)
54
CLEVELAND (CUYAHOGA COUNTY)
65
DETROIT (WAYNE COUNTY)
66
PITTSBURGH (ALLEGHENY COUNTY)
69
MILWAUKEE (MILWAUKEE COUNTY)
73
“A lot of out-of-area money is investing in Cleveland and the Rust Belt because prices are lower and appreciation is not as fast. It’s stable. It’s predictable. It’s a value investment instead of a speculation investment.”
JOSH CANTWELL CEO, STRATEGIC REAL ESTATE COACH
turnkey properties. “We focus on the Rust Belt because there are so many foreclosure properties,” he said. “If you’re looking for a long-term gain, that’s the best place to be.” In its April 2018 report titled Renewing America’s economic promise through older industrial cities , the Metropolitan Policy Program at Brookings noted the overall economic changes taking place in the region — including its real estate market. “As evidence, many older industrial cities today exhibit important signs of economic and demographic momentum, visible in increased investment, growing industries, and burgeoning residential activity.”
Housing News Report interviewed experts in five prominent Rust Belt cities attracting interest from rental investors across the country and across the world thanks to their prime cash flow potential: Cleveland, Detroit, Indianapolis, Milwaukee and Pittsburgh. Rockin’ and Rollin’ in Cleveland Known as the “Rock and Roll Capitol of the World,” Cleveland also became a poster child for the nation’s foreclosure crisis and high unemployment rate during the Great Recession. But the area’s unemployment has dropped almost in half, from its most recent peak of 9.7 percent in February 2010 to 5.2 percent in August 2018 — still above the national average.
And while foreclosure numbers have dropped, there is still a lot of available inventory for investors interested in the Cleveland market. “A lot of out of area money is investing in Cleveland and the Rust Belt because prices are lower and appreciation is not as fast. It’s stable. It’s predictable. It’s a value investment instead of a speculation investment,” Cantwell said. In Cleveland, and other parts of the Rust Belt, many of the homes are 50 to 100 years old and in need of a rehab because many of the systems such as electrical, plumbing, air conditioning and roofing are old.
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NOV 2018 | ATTOM DATA SOLUTIONS
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