Cincinnati Housing Market: Trends and Forecast 2024-2025

Cincinnati offers a surprisingly strong housing market compared to other Ohio cities. Fueled by steady appreciation and a thriving job market, Queen City's real estate is attracting interest from both homebuyers and investors.

The Cincinnati housing market trends in 2024 show a positive outlook, with home sales and prices on the rise. The market is experiencing growth, making it a good time for both buyers and sellers to explore opportunities. Let's take a deeper look at the current trends shaping this dynamic market.

Cincinnati Housing Market Trends in 2024

Home Sales in Cincinnati

The Cincinnati housing market saw a solid increase in home sales in September 2024 compared to the same period in 2023. According to the REALTOR® Alliance of Greater Cincinnati, home sales increased by 3.1%, with 1,676 homes sold in September 2024 compared to 1,304 homes in September 2023. That's a healthy bump! This increase aligns with the overall trend of the year. When you look at the data from January through September of 2024, you see that sales are up 3.1% year-over-year with 11,963 homes sold compared to 11,755 in the same period the previous year.

The increase in home sales is a positive sign for the overall health of the Cincinnati housing market. It indicates that buyer confidence is high, and there is still a strong demand for homes in the area.

Cincinnati Home Prices

Along with the rise in sales, the median home price in the Cincinnati area has also been rising. In September 2024, the median sales price reached $301,000, marking an 8.2% increase from the $279,000 median price in September 2023. If we look at the year-to-date figures, the median price is $297,000, which represents a *6.1% increase* from the $280,000 mark in 2023. This steady upward trend in home prices can be a significant factor for both buyers and sellers.

This increase in prices is consistent with what we've seen in recent years in the Cincinnati area. The market is becoming more competitive, particularly for desirable properties in sought-after neighborhoods.

Housing Supply

One aspect of the market to keep an eye on is the housing supply. As of September 2024, the active inventory of homes for sale is up 44.6% compared to the same month the previous year. This means there are more homes available for sale than last year, which could potentially ease the pressure on buyers in a previously tight market. It can also be a good thing for buyers who might have struggled to find homes in the past couple of years. But, it is still important to consider the specific neighborhoods and price ranges as there can be localized variations.

Market Trends

Overall, the Cincinnati housing market is showing signs of a healthy and balanced market. This is different from recent years when we saw very low inventory. The increase in home sales and prices indicates continued demand from buyers, while the increase in inventory gives buyers a bit more time and options. There is a steady stream of buyers and sellers in the market, which is a sign of a good, well-functioning market.

I believe that this is a good trend. It means we are not seeing a boom-and-bust cycle. It suggests a more stable market where prices and sales are increasing at a sustainable pace.

Is Cincinnati a Buyer's or Seller's Housing Market?

Given the current Cincinnati housing market trends, it's becoming more of a balanced market, leaning slightly toward the sellers. While inventory has increased, the demand for homes remains strong. This means that sellers still have a good opportunity to get a competitive price for their homes, but buyers also have more options and a bit more leverage to negotiate. It's a good time for both buyers and sellers to be in the market.

I often hear people ask whether it is a seller's or buyer's market, and the truth is that it's often a blend. I always suggest having a good Realtor who can guide you on the specifics of your situation.

Are Home Prices Dropping?

While the current inventory is higher than we've seen in the past few years, the market data does not suggest a significant drop in home prices. The prices are still increasing, albeit at a more modest rate. So, while the market is moving toward being more balanced, the prices are not plummeting.

The increase in housing supply can help temper price increases and prevent them from escalating too quickly. I think this is a good thing. If prices were to increase too quickly, it could make homes unaffordable for many people.

Key Metrics for Cincinnati Housing Market Trends in 2024

Metric	September 2024	Change from September 2023	YTD 2024	Change from YTD 2023
Median Sold Price	$301,000	+8.2%	$297,000	+6.1%
Units Sold	1,676	+3.1%	11,963	+1.8%
Total Sold Volume	$605.11M	+6.3%	$4.28B	+7.9%
Active Inventory	2,353	+44.6%
Median Days on Market	6	+20%
New Listings	2,190	+48.6%

Factors Influencing the Cincinnati Housing Market

Several factors contribute to the current housing market conditions in Cincinnati:

• Strong Local Economy: Cincinnati has a relatively strong economy with diverse industries, attracting people to the area and driving demand for housing.
• Desirable Lifestyle: Cincinnati offers a unique blend of urban amenities and a suburban feel, with a strong arts and culture scene, parks, and proximity to natural beauty. This has attracted new residents and boosted demand.
• Affordable Compared to Other Cities: When you compare Cincinnati to cities like Chicago, New York, or Los Angeles, housing costs are still relatively more affordable. This can attract buyers from other parts of the country and contributes to the demand for housing.
• Interest Rates: While interest rates have increased in 2024, they are still at levels that many people can handle. As rates fluctuate, this can affect buying decisions. It's important for buyers and sellers to work with mortgage professionals to understand how these changes can impact them.
• Increased Building Activity: There has been an increase in new construction in certain areas of Cincinnati. This influx of new homes can help to increase the overall inventory and potentially put some downward pressure on prices in some areas.

These factors play a vital role in shaping the Cincinnati housing market, making it an attractive place to live and buy a home.

Cincinnati Housing Market Forecast 2024-2025

According to Zillow's most recent data, the Cincinnati housing market is expected to experience a relatively stable period over the next year. Specifically, we see a prediction for no price change by October 2024, a slight dip in the next quarter (by about 0.3%), and a slight increase of 0.8% by September 2025.

Let's dive deeper into the specifics of the Cincinnati housing market predictions and what they mean for those buying or selling homes.

Home Price Forecast for Cincinnati

I've been following the Cincinnati real estate market for quite some time now, and it's always interesting to see what the future holds. Based on the data from Zillow, here's a breakdown of the predicted home value changes:

Date	Predicted Home Value Change (%)
October 2024	0%
December 2024	-0.3%
September 2025	0.8%

These numbers suggest that while we might see a slight dip in home values in the coming months, the Cincinnati housing market is generally predicted to be relatively stable.

Comparing Cincinnati to Other Ohio Cities

It's interesting to compare the Cincinnati housing market forecast to other areas of Ohio. Based on Zillow's data, other Ohio MSAs are projected to have slightly different experiences:

City	Predicted Home Value Change (%) in September 2025
Columbus	1%
Cleveland	0.8%
Akron	0.4%
Toledo	0.1%
Youngstown	1.7%
Canton	0.2%

It's clear that other cities, like Columbus and Youngstown, are projected to have more significant home value increases compared to Cincinnati. This could make those areas more attractive to investors looking for faster growth, potentially impacting the investment activity in the Cincinnati region.

Will Home Prices Drop in Cincinnati? Will There Be a Crash?

Looking at the predicted small dip of -0.3% in the last quarter of 2024, it is plausible that home prices might drop slightly in the near future in Cincinnati. However, in my opinion, a full-blown crash seems unlikely. The forecast points to relatively stable growth overall, suggesting that the market is likely to remain relatively healthy.

Possible Forecast for 2026 and Beyond

Predicting far beyond a year out is always difficult, but based on current market conditions, I think it is reasonable to expect a slow and steady growth trend in the Cincinnati housing market in 2026. External factors like interest rates, inflation, and the overall economy will certainly influence how the market performs, but I do anticipate a return to a more moderate growth rate by then.

The Future of the Cincinnati Housing Market

Looking ahead, it's expected that the Cincinnati housing market will continue to be a balanced market, with a gradual rise in home prices and sales. The strong economy, desirable lifestyle, and relatively affordable housing costs compared to other major cities are expected to contribute to continued growth.

However, it's important to remember that external economic factors can impact the market. Changes in interest rates, a slowdown in the local economy, or a national recession could affect the demand for housing.

It's also worth paying attention to the development and expansion of certain areas within Cincinnati. The construction of new homes and commercial spaces can have a localized impact on housing prices and availability. I also believe that as the Cincinnati region continues to grow, we'll see a shift in preferences towards certain areas that offer both a vibrant community feel and good access to outdoor activities.

I think that the Cincinnati housing market will continue to be a desirable place to live and invest in. As a local with experience in the market, I'm confident that it has a bright future.

Should You Invest in the Cincinnati Real Estate Market?

Cincinnati is a bustling city located in the southwest corner of Ohio, known for its strong economy, diverse culture, and affordable cost of living. The Cincinnati real estate market has seen steady growth in recent years, with home values increasing by 8.1% over the past year.

Investors interested in the Cincinnati real estate market can benefit from the area's diverse range of neighborhoods, from the upscale and trendy Over-the-Rhine district to the more affordable suburban areas like Paddock Hills and Winton Place. The city's thriving economy, with a strong job market and low unemployment rates, makes it an attractive option for those seeking to relocate or invest.

Here are the top reasons why Cincinnati's MSA real estate market may be a smart investment:

Strong Economic Growth:

Cincinnati's economy has been growing steadily, with a low unemployment rate of 4.40% and a diverse range of industries, including healthcare, education, finance, and manufacturing.  According to Cincinnati.com, the Cincinnati area's economy grew modestly in 2023, increasing by 1%. This was slightly higher than Columbus's growth rate and tied with Milwaukee's. The economic growth has led to a strong demand for housing, making Cincinnati an attractive market for real estate investors.

Affordable Housing Market:

Cincinnati's housing market is relatively affordable compared to other major metropolitan areas in the United States. According to Zillow, the average home value in Cincinnati hovers around $240K, which is quite below the national median value. This affordability, combined with the city's strong economy and low cost of living, makes it an attractive option for young professionals and families.

Strong Rental Market:

Cincinnati has a strong rental market, with a vacancy rate of only 3.6% and average rent prices of $1,128 per month, according to RentCafe. Additionally, Cincinnati is home to several major universities, including the University of Cincinnati and Xavier University, which provide a consistent stream of rental demand from students and faculty.

Growing Population:

Cincinnati's population has been growing steadily over the past decade. The population has grown 12.7% since 2000, averaging 11,169 new residents per year, except for 2009 when the city lost population. However, growth stalled during the pandemic, with only 6,000 new residents added between 2020 and 2022. In 2021–2022, Cincinnati's population grew 0.3%, or about 900 people, to 309,513, which was higher than the 0.2% growth rate for the rest of the metropolitan area. In 2024, the Cincinnati metro area population was 1,787,000, a 0.68% increase from 2023. 

Infrastructure and Transportation:

Cincinnati has a well-developed transportation infrastructure, including a major airport, several major highways, and a robust public transportation system. Additionally, the city has invested heavily in infrastructure projects, such as the Cincinnati Bell Connector streetcar, which connects several neighborhoods in the city. This infrastructure and transportation network make it easier for residents to commute and access amenities, which further increases the demand for real estate in the area.

Stable Real Estate Market:

Cincinnati's real estate market has remained stable over the past decade, with steady appreciation rates and low volatility. According to Zillow, the Cincinnati housing market has appreciated by 8.1% over the past year, which is in line with the national average. This stability makes Cincinnati an attractive option for real estate investors who are looking for a steady return on their investment.

Growing Tech Industry:

Cincinnati's tech industry has been growing rapidly in recent years, with several tech startups and established companies calling the city home. According to CBRE's Tech Talent Report, Cincinnati ranks 27th out of 50 U.S. cities for tech talent, with a 13.1% growth rate in tech jobs from 2015 to 2020. This growing tech industry provides a stable source of employment and further drives the demand for housing in the city.

In conclusion, Cincinnati's strong economy, the affordable housing market, strong rental market, growing population, infrastructure and transportation network, stable real estate market, and growing tech industry make it an attractive location for real estate investors. Whether you're looking to buy and hold rental properties or flip houses for a quick profit, Cincinnati's real estate market offers plenty of opportunities for savvy investors.