Learn more about the housing market in Ohio

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.

Ohio Housing Market Overview

Full of plains, rolling hills, and a rich industrial and agrarian history, Ohio is a Midwestern state named for the river along its southern border.  In 2023, the sectors that contributed the most to its GDP were manufacturing, finance, and insurance, according to data from IBISWorld. Real Estate, Rental, and Leasing was the third-most contributing sector last year, meaning that its notable housing market is worth looking further into.

At the beginning of the year, experts looked at trends from the end of 2023 and predicted that the 2024 housing market in Ohio would continue to see appreciating housing prices and an increasing number of prospective homeowners in the state. As of April 2024, both of these predictions have proven to be accurate, according to data that we will explore later in this article. Different sources point to these trends continuing for the rest of the year. The same article predicted stabilizing interest rates for the state.

Historically high interest rates have seen a significant decrease across the country. The national average 30-year fixed mortgage rate in late 2023 approached 8%, but settled in April 2024 to just below 7%. As we will discuss later in this article, a similar trend can be seen in the Ohio housing market, reflecting easing inflation that is bound to benefit a growing demographic of prospective homeowners across the country.

Ohio Market Trends

To understand the Ohio real estate market, it’s important to keep up with trends. Let’s look at some key ones in Ohio:

Note: These statistics are based on Redfin’s monthly housing data from April 2024.

Median Home Price

The median price of a home in Ohio as of April 2024 was $238,700, according to Redfin’s monthly housing data. This is an increase of 4.7% from April 2023, accurately reflecting predictions of continually increasing housing prices in the state. In Columbus, the capital of Ohio and the most populous city in the state, median housing prices were slightly higher at $290,000 in April 2024, which represents an increase of 1.8% from the previous year. It is important to remember that statewide trends are aggregates from a diverse array of housing markets within the state.

Number of Homes Sold

12,353 homes were sold in Ohio in April 2024, which is a 3.3% increase from the previous year. Though this number is trending upward from the previous year, the number is considerably smaller than peaks that were reached in the summers of 2020, 2021, and 2022. 

It is also important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%.

Median Days on Market (DOM)

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage.

The median DOM in Ohio in April 2024 was 31 days, which is an increase from 23 in April 2023. This means that, on average, listings spend about a month on the market before they are purchased. This upward trend suggests a market that is increasingly favoring buyers.

New Supply Statistics

In 2021, there were about 2.58 new residential construction permits per 1,000 people in Ohio. This statistic, which points to the rate of new housing inventory, is closely in line with the national average. Increased housing supply is predicted to ease housing prices and increase affordability in many markets across the U.S. in 2024.

Property Tax Rate

According to Rocket Mortgage, the average property tax rate in Ohio is 1.59%. This is a higher average than 8 other states in the country, and its average annual property tax is around $3,868.19. However, it is important to keep in mind that this statistic reflects the average of a lot of data in a populous state with significant geographic and economic diversity. Tax rates are likely to vary depending on the value of a home and its location in the state.

Foreclosure Rate in Q1 of 2024

In the first quarter of 2024, 1 in every 1,038 homes in Ohio experienced a foreclosure filing, according to recent data from ATTOM. This is above the national average, and Ohio is ranked just 9th in its foreclosure rates nationwide.

Hottest Local Markets in Ohio

1. Columbus

Columbus is both the capital of Ohio and the state’s most populous. Located in the center of the state, the Columbus Ohio housing market saw median housing prices that were well above the statewide average at $290,000 in April 2024. This is an 1.8% increase from the previous year. Its median DOM is 34 days, meaning that listings in the city spend an average of just over a month on the market before they are purchased. Some of the most popular neighborhoods in Columbus are Southside, Downtown Columbus, and North Linden.

2. Cincinnati

Cincinnati is the third most populous city in Ohio, located along the southwestern border near the Ohio River. Its median housing prices in April 2024 were also higher than the statewide average at $270,500, a 6.5% increase from April 2023. Its median DOM in April 2024 was 39 days, suggesting a strong market for buyers. Some of the most popular neighborhoods in Cincinnati are Hyde Park, West Price Hill, and Mount Washington.

3. Cleveland 

Located in the northeastern part of the state, Cleveland is the second most populous city in Ohio behind Columbus. Its median housing price in April 2024 was lower than the statewide average at $132,000. However, this represents a considerable growth of 20% from April 2023. Its median DOM of 25 days is lower than the statewide average, suggesting that Cleveland’s is a relatively competitive housing market. Some of the most popular neighborhoods in Cleveland are Old Brooklyn, Ohio City, and Mount Pleasant.

Economic Factors Impacting the Ohio Housing Market

A holistic view of Ohio’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few critical ones below.

Mortgage Rates

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2024. As previously mentioned, national averages have dipped form last fall’s record highs, and Ohio is no different. According to Zillow, the housing market in Ohio is seeing interest rates down from close to 8% and currently averaging around 6.38%. This accurately reflects predictions for the year that saw interest rates dipping but staying above an average of 6%.

Inflation and Cost of Living

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Ohio. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income.

Population Changes and Demographics

A changing population ca also have implications for the housing market. According to the U.S. Bureau of Labor Statistics, the unemployment rate in Ohio is 4%. This means that while it is the 36th lowest rate in the country, unemployment is generally low, and Ohio is still an attractive job market that is bound to help the housing market in the state.

Ohio Housing Market Forecast 2024

As previously mentioned, experts considered the appreciating housing market Ohio faced in 2023 and predicted that prices would continue to rise throughout the year. This has proven true over the course of the year, though steadying interest rates and a hope for increased supply in the housing market signified by an increase in sales may indicate a slowing growth in prices.

Likelihood of Ohio Housing Market Crash

Though the way prices in the Ohio housing market have continued to rise may seem concerning, experts maintain that there is very little concern for a crash in the market any time soon. Though prices are rising, other factors like relatively low unemployment rates and a declining and stabilizing average mortgage rate in the state indicate a healthy and thriving market that is unlikely to cross any concerning thresholds in the near future.  

Forecast for the U.S. Housing Market

Now that we’ve looked at Ohio’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years?  

The United States’ current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9.

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Ohio Rental Market

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.  

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year.

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.

This short summary leads directly into Ohio’s current rental market. Below are just a few of the current trends for Ohio’s rental market based on data pulled from Zillow:

Ohio Rental Market Key Trends

• Median rent: $1,300 

• Month-over-month rent change: +$9 

• Year-over-year rent change: +$100 

• Available rentals: 11,908

Conclusion 

Ohio is a very populous state, and different areas are bound to be experiencing different housing market with various influences and factors. However, as a whole, 2024 has demonstrated various signs of a healthy and thriving housing market that buyers and sellers alike should watch closely. Experts and analysts will continue to monitor this market, as well as nationwide factors like interest rates and new construction.