Cleveland Housing Market Report: A Golden Opportunity for Real Estate Investors in 2025

Download Report: Download the Comprehensive Cleveland Real Estate Market Investor Report

For real estate investors, finding markets that offer both affordability and growth potential is key. The Cleveland metro area stands out as one such place. A new report from RE/MAX highlights Cleveland’s strong position in the U.S. housing market.

This article breaks down the latest data from the RE/MAX May 2025 National Housing Report. We will explore what Cleveland’s low home prices, rising sales, and growing inventory mean for real estate investors like you.

Key Takeaways: Cleveland’s Investor Appeal

• Top Affordability: Cleveland ranks as the second most affordable metro area in the U.S. for median home price.

• Stable Prices: Median home prices in Cleveland remained relatively stable, up just 2% year-over-year.

• Strong Sales Growth: Home sales in Cleveland increased by nearly 14% from April to May 2025, outpacing the national average.

• Increasing Inventory: Both active listings and new listings saw significant month-over-month jumps, offering more options for buyers.

• Balanced Shift: While still a seller’s market, increasing inventory suggests a slow shift towards more balance.

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Cleveland’s Unmatched Affordability

Affordability is a cornerstone for profitable real estate investing. It means a lower barrier to entry for you. It also means local residents can afford to live and rent there. The RE/MAX May 2025 National Housing Report confirms Cleveland’s strong position in this regard.

U.S. Metro Areas with the Lowest Median Home Prices (May 2025)

Source: RE/MAX May 2025 National Housing Report

With a median home price of $250,000 in May 2025, Greater Cleveland is one of the most affordable major housing markets in the country. This price is up slightly from April ($244,000) and only 2% higher than a year ago. This stability is a positive sign, suggesting sustainable growth rather than rapid, unsustainable price jumps.

For Real Estate Investors: Lower entry costs mean you can acquire properties with less capital. This can lead to higher cash-on-cash returns and better rent-to-price ratios, which are crucial for generating consistent cash flow from rental properties.

Related: Investing in Cleveland Real Estate: Everything You Need to Know

Market Activity: Sales, Inventory, and Listings

Beyond price, understanding market activity is vital. The RE/MAX report shows a dynamic housing market in Cleveland, with increasing sales and inventory.

Cleveland Housing Market Activity (May 2025 vs. April 2025)

Source: RE/MAX May 2025 National Housing Report

Cleveland’s home sales saw a noticeable uptick in May, increasing by nearly 14% from April. This growth outpaced the national average, which saw an 11.5% increase in sales across 50 metro areas. This suggests strong buyer demand in Cleveland.

Crucially, inventory also grew significantly. Active listings jumped by 17.6%, and new listings rose by 17.1% month-over-month. This is good news for potential buyers and investors. More homes on the market mean more options to choose from.

For Real Estate Investors: The increase in sales indicates a healthy, active market where properties are moving. The rise in inventory, especially new listings, means you might find more opportunities. This can ease some of the intense competition seen in other tight markets.

Related: The Top 7 U.S. Real Estate Markets to Buy Profitable Rental Properties in 2025

Market Pace and Seller Performance

Understanding how quickly homes are selling and how much sellers are getting for their properties gives further insight into market conditions.

• Days on Market: Homes in the Cleveland area spent an average of 28 days on the market in May 2025. This was unchanged from April but up from 23 days a year ago.

• Seller List Price Received: Sellers, on average, received 100% of their list price in May. This held steady from April but was slightly below the 101% seen last May.

• Months Supply of Inventory: Cleveland’s months supply of inventory increased to 1.3 months, up from one month a year ago. This measure indicates how long it would take to sell all for-sale homes if no new listings were added.

For Real Estate Investors: While the days on market increased slightly year-over-year, properties are still selling very quickly (28 days is a fast pace). Sellers are still getting their full asking price, which shows strong demand. The increase in months supply of inventory, from 1.0 to 1.3 months, is a subtle but important shift. It suggests the market might be moving towards a more balanced state, rather than remaining a strong seller’s market. This could lead to slightly less intense bidding wars and more negotiation room for investors in the future.

Related: The Best U.S. Real Estate Markets for Foreign Nationals and Non-Resident Investors in 2025

Expert Insights and Implications for Investors

The positive trends in Cleveland are echoed by industry leaders.

“Rising sales, growing inventory, declines in days on market and steady prices are all encouraging signs for the housing industry,” said Erik Carlson, CEO of RE/MAX. “It’s great to see the spring market end on a solid note, and we’re optimistic that this momentum could carry into an active summer season.”

In-Depth Analysis for Real Estate Investors

• Sustained Cash Flow: Cleveland’s continued affordability, combined with stable prices and growing sales, reinforces its potential for strong cash flow. Investors can acquire properties at reasonable prices and generate reliable rental income, especially in well-chosen neighbourhoods.

• Growth Potential: While price appreciation was modest year-over-year (2%), this steady growth is healthier than rapid spikes. It suggests a market that is appreciating sustainably, reducing the risk of sudden downturns. The increasing sales volume indicates underlying demand that can support future price increases.

• Navigating Inventory: The rise in active and new listings is a significant development. For investors, this means more opportunities to find properties that fit their criteria. However, competition remains strong, as evidenced by properties still selling at 100% of list price and relatively low days on market. Being prepared with financing and quick decision-making is still crucial.

• Market Resilience: Cleveland’s ability to maintain relatively stable prices and increase sales, even as national trends show some volatility, speaks to its economic resilience. Its diversified economy (healthcare, education, manufacturing) provides a stable job market, which in turn supports housing demand.

• Strategic Acquisition: This market data suggests that Cleveland remains an attractive location for investors focused on long-term wealth building through rental properties. The combination of affordability, consistent demand, and a gradually shifting market offers a window for strategic acquisitions.

Related: The Top U.S. Real Estate Markets for First Time Investors

Conclusion: Cleveland – A Smart Bet for Rental Property Investors

The latest RE/MAX report paints a promising picture for the Cleveland metro area. Its position as one of the most affordable markets, coupled with rising sales and increasing inventory, creates a compelling environment for real estate investors.

By understanding these key trends, investors can leverage Cleveland’s unique market dynamics. This allows for smart property acquisitions, strong cash flow generation, and sustainable long-term appreciation in their portfolios. Keep a close eye on local market nuances and work with experienced professionals to maximize your investment success in this resilient market.

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Frequently Asked Questions (FAQs)

Q1: Why is Cleveland considered a good real estate market for investors in 2025?

A1: Cleveland is attractive due to its high affordability (second-lowest median home price in the U.S.), stable home prices, strong growth in home sales, and increasing inventory, all of which contribute to good cash flow and long-term potential for rental property investors.

Q2: What is the median home price in the Cleveland metro area as of May 2025?

A2: According to the RE/MAX May 2025 National Housing Report, the median home price for a home sold in the Cleveland market was $250,000.

Q3: How have home sales and inventory changed in Cleveland recently?

A3: In May 2025, home sales in Cleveland increased by nearly 14% from April, while active listings grew by 17.6% and new listings rose by 17.1% month-over-month, indicating a healthy and increasingly active market.

Q4: Does Cleveland’s housing market favor buyers or sellers?

A4: While properties still sell relatively quickly (28 days on market) and for 100% of the list price, the increase in months supply of inventory to 1.3 months suggests a slow shift towards a more balanced market, moving away from a strong seller’s advantage.

Q5: What are the implications of Cleveland’s affordability for real estate investors?

A5: Cleveland’s affordability means a lower barrier to entry for investors, allowing them to acquire properties with less upfront capital. This can lead to higher cash-on-cash returns and favorable rent-to-price ratios, supporting consistent positive cash flow from rental properties.