Cincinnati is closing out the year strong. 2016 is expected to bring expansion in jobs, construction, and home sales.
Cincinnati is an interesting and historic city founded on the banks of the Ohio River. It's known for historic architecture, but has all the amenities found in new urban development. Forbes lists it #75 on their Best Places for Business and Careers list. It’s #104 in job growth. Cincinnati has a population of 2,151,000 with a median household income of $55,686. The cost of living is 7.6% lower than the national average.
Unemployment is down across the 15 county area. This decline is attributed to job growth, not a reduction in labor force participation. Moody’s Analytics is forecasting a 2.5% increase in overall revenue over the next five years.
Cincinnati home values and sales declined during the recession that hit Americans around 2007. The housing market was one of the hardest hit sectors with foreclosures and unemployment rising dramatically.
In 2011 and 2012 home sales were still declining slightly but by 2013 the market had rebounded with its best year for housing units sold since the 2006. The Cincinnati Area Board of Realtors noted the average sale price had exceeded sale prices from 2007, marking a return to pre-recession market levels. The volume of home sales has been rising steadily ever since, and by 2014 real estate moguls were lamenting the lack of inventory as an inhibitor of market growth.
The local market is believed to be returning to normal. However, sales of single-family homes and condos in 2014 were still declining from 2005. Cincinnati’s average selling price was roughly $20,000 less than in 2007, even when adjusted for inflation. An early indicator of improvements came when the time on the market began to drop and homes began to sell more quickly. Cincinnati’s average home ownership rate was 65.6% in 2014, improving from a recession low of 62.4% in 2009. However, the 2014 rate was still lower than 2005, when home ownership was at 68.4% according to Cincinnati.com.
The National Association of Realtors has predicted existing home sales will continue to improve. It's six years after the “end” of the recession and the housing market is still recovering.
By the end of 2015, the housing vacancy rate in Cincinnati was the lowest in the region at 4.9%. Rental rates were on the rise in the last two quarters of the year, according to Colliers. In December, the builder for a new 12-story apartment complex in downtown Cincinnati was announced. The $45 million project will offer 133 units atop a six-story parking garage. This follows the $21 million Seven at Broadway project, which leased 50% of their apartments in the first three weeks.
By the end of 2015, home sales had dipped slightly between November and December, which is typical during the dreary raining winter season in Cincinnati. The average home price by the third week of December 2015 was $123,900, up from $109,900 in 2014. Cincinnati homebuyers can expect to pay around $87 per square foot, an increase of 135% from the year prior. This is a dramatic and hopeful increase, which should spur the hesitant buyer into action; get the property now before the market grows and prices likely increase in the spring of 2016.
There are several communities in the Cincinnati region worth noting. Each of these communities is trending upwards in terms of sale prices and home values. No real estate review of Cincinnati is complete without analyzing these consistently hot spots for home sales.
Mount Adams remains the hottest community to buy a home in. Median home price rests around $346,500. The community boasts the best views in the city, with sprawling brick mansions, ample green space, excellent schools and low crime. It is a coveted place to live, if you can afford it.
Hyde Park comes in second, with an average home sale price of $278,800. This is a two-block area on the east side of the city. This is a classy neighborhood of brick structures with a 120-year history. An island of park space nestles right in the middle of this small but coveted district. It has a wonderful shopping district within walking distance and access to excellent school systems, both public and private.
Third is Columbia-Tusculum at $213,500. This community is historic and one of the oldest in the city. It features Victorian architecture and cool, eclectic shops and restaurants. It is a popular place for tourists, has ample walking traffic and scenic views of the Ohio River. Some of these restored homes were built in the early 1900s and eighteen in the community are on the National Register of Historic Places.
More affordable Over-The-Rhine averages $147,200 along with North Avondale at $132,000. There has been a wave of growth even during the recession in these communities, making them easy choices for new homebuyers and property investors. In the past ten years, new business centers have sprung up across all of these communities, creating jobs and interest in the region.
Cincinnati may be a hidden gem when it comes to home sales. While you may not think of it as your first choice for your first home -- or even your retirement condo, you probably should. Cincinnati has an unusual combination of consistently high home values with a low cost of living, which makes it a solid choice for the savvy shopper. Cincinnati have all the amenities of the urban lifestyle; access to nightlife, shopping, great restaurants and culture, along with good schools and some beautiful green spaces. With real estate trends looking up for 2016, real estate shoppers should definitely consider Cincinnati, Ohio.
