{"id":131238,"date":"2020-10-24T10:00:48","date_gmt":"2020-10-24T16:00:48","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=131238"},"modified":"2021-03-16T17:04:29","modified_gmt":"2021-03-16T23:04:29","slug":"real-estate-investment-ideal-market-for-2020-midwest","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/real-estate-investment-ideal-market-for-2020-midwest","title":{"rendered":"Where Smart Investors Are Looking to Buy Real Estate in 2020"},"content":{"rendered":"

From the rolling hills to the riverbanks, the landscape surrounding Cincinnati is picturesque. Located along the Ohio River in the southwest corner of the state, residents experience a wide variety of temperatures, with snow in the winters for Christmas and hot summers.<\/p>\n

Known as the \u201cQueen City of the West,\u201d Cincinnati has become popular among professionals and millennials looking for an affordable place to raise a family. The University of Cincinnati, Xavier University, and other nearby educational institutions attract more than 50,000 students to the area.<\/p>\n

The Cincinnati metro actually bleeds into Indiana and Kentucky and is the third largest metro area in the United States. Ohio has the 7th largest economy in the Midwest and the total GDP for the Cincinnati metro area is around $141 billion dollars<\/a>. The median household income is approximately $65,000.<\/p>\n

Cincinnati\u2019s affordability and job growth continues to attract a diverse population, which is a major reason it has become a hot spot for investors looking for cash flow. Some neighborhoods have delivered high appreciation over the past few years and continue to.<\/p>\n

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That said, our world has experienced a lot of change and uncertainty in 2020. No city or state in the U.S. has gone unscathed by the coronavirus pandemic. But there are still strong real estate markets out there and key indicators of a healthy market remain the same.<\/p>\n

First, let\u2019s consider how COVID-19 has impacted Cincinnati and what it means for investors looking to buy there.<\/p>\n

The Impact of COVID-19 on Cincinnati<\/h2>\n

Before COVID-19 crashed the party, the national unemployment rate was at an all-time low. When the pandemic forced businesses to shut down, most states began seeing job losses pile up quickly and unemployment claims skyrocket.<\/p>\n

As of August, national unemployment rates were around 8.5%. In the Cincinnati metro, the unemployment rate was 8%<\/a>. As the economy reopens, jobs are coming back. About 600,000 jobs returned to the nation\u2019s workforce in September. The good news is, Cincinnati\u2019s workforce<\/a> is expected to go up by at least 6% over the next 10 years. More jobs means more people, and people will always need a place to live.<\/p>\n

4 Best Practices for Investing in Cincinnati<\/h2>\n

No. 1: Invest in properties that the average person in the area can afford.<\/h3>\n

A 2019 report by Realtor.com<\/a> ranked Cincinnati as the second most affordable place to raise a family in the U.S. The cost of living<\/a> is 10% below the national average. Housing expenses are 24% less when compared nationally. Healthcare costs are 2% below the national average and utilities and groceries cost less, too.<\/p>\n

The median home price in Cincinnati proper is $174,276 (as of October 2020), which is 33% below the national average. The average home price in the Cincinnati metro area is currently $197,135\u2014a 7.2% increase compared to last year. Zillow<\/a> predicts home values will go up 5.3% over the next year.<\/p>\n

Overall, Cincinnati is amazingly affordable compared to other big cities around the country.<\/p>\n

No. 2: Invest in areas that are growing.<\/h3>\n

Over 1,000 people moved to the city of Cincinnati last year. The total population of the metro area<\/a> is about 2.2 million. The number of people moving to the Cincinnati area has steadily increased over the past 10 years. While the rate at which people are moving to Cincinnati may not be as high as other cities around the country, the growth is steady.<\/p>\n

As of 2019, the best up-and-coming neighborhoods<\/a> in the Cincinnati area include:<\/p>\n