From Bust to Boom: The Unstoppable Rise of Real Estate Investment in Cleveland

In the aftermath of the 2008 financial crisis, Cleveland has demonstrated an inspiring comeback, emerging as a city ripe for real estate investment. This resurgence, marked by strong cash flow and steady appreciation, has turned the city into a hotspot for investors seeking robust returns. Packed with burgeoning neighborhoods that have transformed from the abyss of the Great Recession into flourishing investment opportunities, Cleveland's real estate market represents resilience and reinvention. In this blog post, we will delve into these promising areas, exploring their unique characteristics, and revealing why they are generating such significant investor interest. So, hold onto your hats and prepare for an in-depth journey through the reborn real estate landscape of this spirited city.

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Top Neighborhoods for Investment

1. Kinsman & Fairfax Here's why Kinsman and Fairfax are garnering attention for their potential as real estate investing hotspots. First - and this is key - they're surrounded by more gentrified neighborhoods, and if there's one thing we know about gentrification, its that doesn't happen in random little clusters around a city. It instead tends to have a focal point, and subsequently expands from that point to its neighboring areas. Kinsman's transformation from a distressed district to a promising location tells a story of resilience, making it an encouraging prospect for investors. Its YoY median sale price has increased at a rate of 32% from September 2022 - September 2023 according to Redfin. Fairfax, on the other hand, boasts of a strategic location, nestled next to the Cleveland Clinic, one of the city's top employers. This locality is seeing a surge in demand for rental properties due to their proximity to downtown, University Circle and the Cleveland clinic. Additionally, both Kinsman and Fairfax are benefiting from recent urban development projects aimed at rejuvenating the area, further boosting property values.

2. Lee-Miles If you're casting your net towards family-oriented tenants, then look no further than Lee-Miles! This neighborhood is the epitome of Cleveland family-friendly living. Surrounded by quality schools, a plethora of family-oriented amenities such as the Garfield parks reservation, and is 5 minutes from Cleveland Clinic South Pointe hospital. For these reasons, it's an attractive prospect for families seeking a balanced lifestyle.  Lastly, it's got a fairly low entry point to the market with median house prices of $95k, but with 25% YoY appreciation from Sep. 2022 - Sep. 2023 according to Redfin.
3. Buckeye Shaker But that's not all folks, next we have Buckeye Shaker, which offers a perfect blend of city living convenience and community charm. The neighborhood is close to Case Western Reserve University, and is located  just 3 miles from the Cleveland Clinic's main campus (let's hope the Cleveland healthcare industry never does a General Motors '08, or the whole city's f*cked..I guess people always need healthcare though right?). What's more, Buckeye Shaker is rich in cultural heritage and is known for its vibrant food and music scenes, adding to its liveability. More on the amenities side, there is a nearby  shopping district, and also a light rail connecting it to downtown Cleveland. Median home prices are slightly higher here at around $115k, but if you're looking for economic stability, cultural variety, and community spirit - Buckeye Shaker is the place to be!
4. Warszawa Historic District (Slavic village) Alright, last but certainly not least, we take a trip to the cultural cradle of Cleveland. In its darkest days, this area marked one of the infamous epicentres of the Great Recession in 2008, but that time is long gone. What you have to understand is that Slavic Village acts as a historical goldmine that represents the soul of the city. Built upon a strong and proud immigrant heritage, the neighborhood is a testament to the power of community, resilience, and tradition. Think of nesting dolls, pierogies, and polkas. Not to mention, it's also home to the Polish American Cultural Center, a hub that celebrates and perpetuates the rich Polish culture and traditions. The district also boasts a thing for the arts, being home to the Magalen, a fantastic arts and event space that regularly hosts community-led creative projects. No surprise that median home prices here are currently at $155k, which is the highest on our recommended list. That said though, this community is back on the up, with YoY appreciation of around 28% from Sep. 2022 - Sep. 2023 according to Redfin. So, if you're drawn to rich history and a strong sense of community (or perhaps just a soft spot for Eastern European culture), then Slavic Village is your go-to!

But why would anyone want to invest in Cleveland?

Before we go any further though dear reader, let's dispense with the 4,000lbs elephant in the room. The city is cold, gray, and often damp...so why would anyone want to invest in Cleveland?

First of all, because ✨ cash flow ✨

Second of all, because 🚀 appreciation 🚀

But if that alone doesn't convince you, here's a more human reason. Yeah you could go to Florida and deal with hurricanes, alligators, and its acquired population of neanderthals - but why would you do that? Cleveland is a sensible city for folks that can enjoy a pint on a Thursday evening, but crucially get up and go to work on a Friday morning. Its residents don't have the option of a midweek stroll down to Miami Beach for a $25 mojito, and certainly don't run the risk of losing an entire month's rent at the Blackjack table in Atlantic City. Yes it had some bad times a decade and a half ago, but didn't you too? Cleveland represents the good old fashioned American spirit of picking yourself up, and  dusting yourself off, and that's why we like it.

And when all is said and done - at least it's not Detroit.