While the median price of a home in the United States inched up modestly in June, one state — Ohio — took up two spots among the top five markets where prices increased the most.
Cleveland and Cincinnati stood out in a group that exemplified how the Midwest is strongly leading the nation with the fastest-growing prices, according to Homes.com data. Buyers are attracted to the affordability, agents say, and that's driving up values.
Cleveland’s median home price rose 8% in June to $270,000, compared to an overall national bump of 1.3%. It’s a stark difference from the national median home price of $395,000.
That landed Cleveland in the second spot for markets with the highest price growth in June, trailing closely behind Milwaukee’s 8.2% increase at the No. 1 spot.
On the other side of the state, Cincinnati isn’t far behind that, placing fourth with a 6.7% increase and a median sale price of $320,000. Pittsburgh was the third fastest-growing market in the month, while San Jose, California, placed fifth.
Here's a look at what real estate agents say is happening in two of Ohio's largest cities:
Cleveland
For many U.S. markets, home prices have cooled, shifting the advantage from sellers to buyers. That's been the case in places such as Houston, Denver, Atlanta and Miami, but not Cleveland, Homes.com data shows.
“A lot of the headlines you cannot compare to our local market,” said Cleveland-area agent Kristin Baum of Engel & Volkers. “Demand still remains pretty steady, and there’s still not a lot of options for people.”
Buyers are in luck that available homes are on an upswing. According to the Akron Cleveland Association of Realtors, new listings increased 6.2% in June.
Agent Adam Kaufman of Howard Hanna, a lifelong Cleveland resident, said the city has undergone a reputation revamp in the past 15 years, going from the nickname “Mistake on the Lake” to an arts and entertainment hub with a strong healthcare industry.
It’s brought back a return of many former Clevelanders with young families who left for cities such as Chicago, or states including California, New York and Texas.
“They’re coming from other markets where the real estate is so much more expensive that to them, Cleveland is still incredibly affordable,” said Kaufman.
It’s been good for the luxury market and in suburbs like Shaker Heights and Chagrin Falls, he added.
The population in Cleveland, according to the U.S. Census Bureau, has also turned. After steadily dropping from the 500,000s in the 1990s to the 300,000s today, the count saw slight increases in 2023 and 2024.
The affordability of the revitalized city is a large draw for buyers who come back but it also makes first-time homeownership accessible for current residents.
There’s heavy competition for homes in the $200,000 to $250,000 price range, said agent Brooke Shedden with Keller Williams Greater Metropolitan, who’s currently assisting a buyer in a multiple bid situation against five other offers. These scenarios result in higher-than-listing-price sales, influencing that median price higher and higher.
“Those houses fly off the shelves in the first weekend if they’re priced right and look halfway decent and are livable. That’s where we’re seeing a lot of competition,” said Shedden.
Cincinnati
Cincinnati is about 250 miles away from Cleveland, on the other end of the state, and despite similar price increases, the markets are very different. Still, like Cleveland, listings are up. The Realtor Alliance of Greater Cincinnati reported a 12.1% June increase in new listings.
Cincinnati's rising home prices have challenged first-time buyers, according to area agents. Many of the homes listed around the median price of $320,000 need upward of $100,000 in work, said Amanda Pertuset of Coldwell Banker Realty.
But in the luxury home sector, record-breaking home sales continue.
“I think there’s a growing wealth gap in the country overall, and the luxury market is doing very well. Everything else is leveling out,” said Pertuset, who specified Butler County, which includes towns Hamilton and Fairfield, as a top market for high-priced home sales.
That county has seen 12 home sales so far this year that exceed $1 million. While affordable homes are less attractive for their condition, new homes are adding to the high-priced inventory, skewing home prices further.
According to Homes.com listings, there are nearly 600 new construction homes for sale in greater Cincinnati. About 10% are priced below $320,000, while the remainder range up to $3.8 million.
The Midwest overall has posted greater strength amid the nationally softening housing market, according to Homes.com data. Agents say most new construction and buyer movement over the past five years have occurred in Sun Belt states, but that's starting to change. Midwest market values are ramping up as inventory remains low.
“Where people have their primary homes, those markets are very hot. … Our real estate was so undervalued for so long that we’re finally catching up to the rest of country,” said Cleveland-based Kaufman.
