Published by Hondros College: Ohio Housing Market Predictions 2025 | Hondros College
Predicting housing market trends allows buyers, sellers, and investors to make well-informed decisions. Buyers can plan for expected interest rates and pricing while sellers gain insights into optimal timing and pricing strategies. Investors, meanwhile, can evaluate potential returns in Ohio’s cities and decide whether market conditions favor long-term rentals, flips, or other investment avenues.
Let’s start our analysis by looking at the 2024 Ohio real estate market.
Key Takeaways
Ohio’s housing market in 2024 was marked by strong buyer demand, competitive pricing, and quick sales, with the average home price rising by 5.3% year-over-year. These trends are expected to continue into 2025, supporting a robust market environment for real estate professionals.
Key factors impacting the 2025 housing market include steady job growth in sectors like healthcare and technology, a modest population increase driven by affordability in Ohio’s metro areas, and potentially favorable mortgage interest rates, which could stimulate demand further.
Limited inventory, particularly in affordable housing, will likely remain a barrier for buyers in 2025, especially in high-demand metro areas. This shortage could keep competition high, making early planning and quick action essential for buyers while creating favorable conditions for sellers.
With Ohio’s market expected to stay strong, now is an ideal time to pursue a real estate license.
Current Real Estate Trends in Ohio
We reported earlier this year that several Ohio real estate markets were predicted to be some of the nation’s hottest for 2024. The predictions were correct, as the state experienced a robust seller’s market, with buyers competing for limited inventory, resulting in quick sales and competitive pricing.
House prices: The average house price in Ohio rose to approximately $230,250, marking a 5.3% YoY increase. This steady price growth reflected strong buyer interest despite mortgage rates.
High demand: Homes in Ohio moved off the market swiftly, with a median of 9 days to pending, highlighting the market’s competitiveness, especially in popular areas like Columbus, Cincinnati, and Cleveland.
Steady price growth: The median list price in Ohio reached $253,267, indicating sellers’ confidence that buyers would be willing to meet or even exceed these elevated price points.
Sale-to-list ratios: On average, 42.1% of homes sold over the list price. This reflects the market’s competitiveness, as many buyers were willing to offer above the asking price to secure their desired properties.
Source: Zillow, November 2024
It’s worth noting that even with these strong indicators, the number of closed sales in Ohio showed only slight growth YoY as inventory and interest rates affected the number of sales.
Key Factors Influencing the Ohio Housing Market in 2025
Here are some factors to consider as we predict Ohio’s housing market in 2025.
Job growth and employment rates
Ohio’s employment rate is expected to remain steady, with modest growth in sectors like healthcare, technology, and education.
Job creation in these sectors could attract new residents to Ohio’s urban centers, especially Columbus and Cleveland, boosting demand for housing. Strong employment levels generally bode well for housing demand, but affordability will be crucial for sustaining buyer interest.
Population growth and migration patterns
Ohio’s population has gradually increased, with a steady influx of residents from higher-cost states seeking Ohio’s lower cost of living. (The state’s population reached approximately 11.79 million in 2023, reflecting a 0.22% increase from the previous year.) Major metropolitan areas such as Columbus and Cincinnati continue to grow, driven by economic opportunities and quality-of-life improvements.
This population increase sustains a high demand for housing, particularly in urban and suburban areas, contributing to continued competition and price appreciation.
Mortgage interest rates
Mortgage interest rates have impacted Ohio’s housing affordability in recent years, though they may begin to stabilize or even decrease slightly in 2025.
If rates remain favorable, this could encourage more buyers to enter the market, supporting demand and keeping home values on a growth trajectory. Lower rates would particularly benefit first-time buyers and those looking to refinance.
Inflation
While inflation is projected to cool compared to recent years’ highs, it will likely remain a factor in the Ohio housing market.
Rising construction costs, energy prices, and general living expenses may limit new home construction, potentially tightening inventory. For buyers, this means higher costs for essentials, which could impact how much they are willing to spend on housing.
Inventory levels
Inventory will likely remain a challenge in Ohio, especially for affordable housing. While some new housing projects are expected in 2025, these may not fully address demand. Buyers could face competitive markets in metro areas, while sellers may find favorable conditions due to limited supply.
Strategies for Buyers and Sellers in 2025
For those planning to enter Ohio’s housing market in 2025, here are some strategies to consider:
Buyers: Start planning early and shop for competitive mortgage rates. In tight inventory conditions, be prepared to act quickly on homes that meet your needs. If affordability is a concern, consider exploring areas outside Ohio’s major cities, where housing costs may be more manageable.
Sellers: Given expected inventory challenges, 2025 will likely be a seller’s market in many parts of Ohio. Sellers should consider listing early in the year to take advantage of pent-up demand. Staging and minor renovations can help maximize sale prices, especially in competitive markets.
Investors: The rental market is expected to stay strong, making 2025 a good year for investment. Investors may want to focus on multi-family units or affordable properties in high-demand areas like Columbus and Cleveland, where rental yields are likely to be favorable. Exploring rural or suburban areas with lower entry prices could also offer opportunities for long-term growth.
Real estate professionals: The 2024 market and current economic factors show it’s an excellent time to enter the real estate industry. Real estate agents typically earn up to 3% of a property’s purchase price, which they share with their brokerages. (That’s almost $7,000 per home sold in Ohio.)
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