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East Cleveland's Home Values Double Amid High Renter Occupancy
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
East Cleveland, Ohio, located in zip code 44112, is a city with a rich history and a dynamic housing market. Over the past decade, East Cleveland has experienced significant shifts in its homeownership rates and housing prices. The city has predominantly been a renter's market, with homeownership rates hovering around one-third of the population. Average home prices and average rent prices have shown interesting trends, reflecting the city's economic landscape and demographic changes.
The homeownership rate in East Cleveland has remained relatively stable, fluctuating between 31% and 35% from 2013 to 2022. Despite this consistency, average home prices have shown a remarkable upward trend. In 2013, the average home price was $27,446, which steadily increased to $54,840 by 2022, representing a nearly 100% increase over a decade. This substantial rise in home values did not correlate with an increase in homeownership, suggesting that other factors, such as income levels or local economic conditions, may have played a more significant role in determining homeownership rates.
Federal interest rates have historically influenced homeownership trends, with lower rates typically encouraging home buying. However, East Cleveland's homeownership rates remained relatively stable even as federal interest rates fluctuated significantly. For instance, when interest rates were near zero from 2020 to 2021 (0.38% and 0.08% respectively), homeownership in East Cleveland only changed marginally from 31% to 32%. This suggests that local factors may have a stronger influence on homeownership in East Cleveland than national interest rate trends.
The rental market in East Cleveland has been dominant, with renter-occupied units consistently accounting for about two-thirds of the housing stock. The percentage of renters increased slightly from 65% in 2014 to 69% in 2022. Average rent prices have shown modest fluctuations over the years. In 2013, the average rent was $649, which decreased to $615 in 2017 before rising again to $666 in 2022. This relatively stable rent price, combined with a declining population (from 17,638 in 2013 to 13,926 in 2022), suggests a balanced rental market where supply and demand have remained relatively aligned.
Looking at the most recent data, average home prices in East Cleveland reached $51,814 in 2023 and further increased to $54,037 in 2024. This continued upward trend in home values occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homebuying activity in the city.
Applying predictive models to forecast the next five years, we anticipate that average home prices in East Cleveland will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $60,000 to $65,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $700 to $750 per month by 2029, assuming current economic conditions and population trends persist.
In summary, East Cleveland's housing market is characterized by a strong rental sector and steadily increasing home values. Despite rising home prices, homeownership rates have remained relatively stable, indicating that local economic factors may have a more significant influence than national trends. The city's declining population coupled with rising property values presents an interesting dynamic that will likely shape its housing market in the coming years.
