Relatively affordable housing has always been one of Toledo's strengths, and the investment extends far beyond the city's borders. Despite the city's low housing costs, Toledo is an excellent rental market, with nearly half of households renting rather than owning real estate. Toledo is located in northwest Ohio on the shores of Lake Erie, less than an hour's drive from Detroit. The industries of transportation, manufacturing, and automobile assembly support the economy. In addition, education, health sectors, and glass production support the job market in Toledo. Toledo earned the nickname "City of Glass." Population and employment growth are slow but steady.
Coupled with affordable home prices and rising rents, it's no surprise that top realtors in Toledo, OH, are eyeing the real estate market in 2022. The Toledo real estate market is actively developing and offers more attractive opportunities for investing. According to last year's results, investments in new buildings are considered the most reliable and profitable way to increase capital, and the financial return on such investments is traditionally high.
The housing market trends in Toledo have shown growth. This trend is most noticeable in the income housing sector. In recent years, the number of private investors in real estate has been increasing. This means that the number of people willing to buy apartments and whole houses with the prospect of long-term rental is growing. At the same time, the share of such investments may increase significantly in the coming years. Analysts noted an increase in investment in construction in Toledo. Favorable conditions for doing business, the level of infrastructure, the availability of recreational areas, and the development of tourism and transportation contribute to the high attractiveness rating of Toledo, which encourages investors to invest in new construction projects. Where should you invest? Experts advise those who want to increase their capital to invest in profitable real estate during construction. When choosing real estate, pay attention to the location, construction quality, and developer reliability.
Population growth
Like most cities in Ohio, Toledo is experiencing a long-term slowdown in population growth. Basic demographic data:
The city of Toledo has a population of about 271,000, with a population of 644,000 in the Toledo metropolitan area.
Toledo is the fourth largest city in Ohio and the 79th largest in the United States.
The Toledo metropolitan area, or Greater Toledo, covers Fulton, Wood, and Lucas counties (where Toledo is located).
Toledo has strong economic ties to Detroit, just 40 miles north of Toledo, and is part of the Great Lakes metropolitan area.
Toledo's population grew by 6.5% year-over-year, while the city's population declined by 5.7% over the past decade.
Labor market
Compared to other forms of investing, investing in Toledo real estate has clear advantages. Most importantly, by investing in Toledo real estate, you are effectively protecting your capital against loss of value. Secondly, this investment does not require any special knowledge and experience from the investor. The most attractive thing about an investment property is that you can regularly receive income in more significant amounts compared to other forms of investment. When you buy real estate in Toledo, whether residential or commercial, you can already enjoy the benefits of renting that property all the time.
In addition, by improving the condition of the purchased property, you can increase its liquidity, which will allow you to sell the property at a higher price in the future. Another obvious advantage of investing in Toledo real estate is the relatively lower risk of professional burnout. Unlike buying securities or stocks, investing in Toledo real estate is much safer because real estate is not subject to sharp drops in price. Therefore, the risk of loss is relatively lower. Investing in Toledo real estate is only worthwhile if you view it as a long-term project. After all, earning back the money you invested takes a lot of time. Therefore, it is essential to notice market trends and examine the best time to buy and sell real estate based on the market situation. In addition to making your money work for you, you must decide what to invest it in. Today's most attractive and popular form of investment in the real estate market is buying your own home in Toledo. The advantage of this is that when real estate prices fall, rental prices, on the contrary, rise. That's why you can make good money renting in Toledo.
When choosing a property to buy in Toledo, location is critical because it determines the profit you can make. It is essential to be near a convenient transport hub and enjoyable entertainment. Investing in real estate in Toledo has been proven to pay off quickly. Investing in real estate at the construction stage is highly profitable because you can save up to 50% of the total cost. Toledo ranks first for investment in new businesses, indicating that Toledo's economic momentum continues to grow. According to a real estate agent in Ohio, the current $2.2 billion development projects are expected to create 3,500 new jobs and build more than a thousand new homes.
Basic employment statistics for Toledo:
Last year, Toledo's employment increased by 8.43%, and the unemployment rate fell to 3.6%.
According to the BLS, construction, manufacturing, trade, and transportation are the fastest-growing employment sectors.
Targeted industrial clusters in Toledo and Lucas County include plastics and auto parts, engineering services, logistics and warehousing, biomedical and advanced manufacturing.
Fortune 500 and Fortune 1000 companies in the Toledo area include Dana Incorporated, Owens Corning, The Andersons Inc., Owens Illinois, and HCR ManorCare.
The largest employers in Toledo and Lucas County are ProMedica, Mercy Health, Bowling Green State University, The University of Toledo, The Andersons, G.M., HCR ManorCare, First Solar, Welltower Real Estate Investment Trust, and Marathon Petroleum Corporation.
Major universities in Toledo include the University of Toledo, Toledo College of Medicine and Science, Davis College, and Owens Community College.
91% of Toledo residents have a high school diploma, and 27.3% have a bachelor's degree or higher.
Interstates I-70 and I-80 pass through Toledo.
Toledo is a central hub and transportation hub for the Norfolk & Southern Railroad and the CSX freight railroad.
The Port of Toledo offers oversized cargo services throughout the Great Lakes region.
Allegiant Airlines and American Airlines offer direct flights from Toledo Express Airport (TOL) to Orlando, Tampa, Fort Myers, Charlotte, and Chicago.
Investing in a home is a very profitable investment in Toledo. Although buying a plot of land and building a house requires considerable capital investment, these costs will pay off, mainly if the home is located in a suitable and attractive location. However, it should be remembered that usually, an apartment can be sold faster than a house. Another profitable way to invest in Toledo real estate is to invest in properties selling at a low price. Still, you need to find a good professional who knows the specifics of the Toledo real estate market where you plan to invest.
The current state of the real estate market
The Toledo real estate market is a buyer's market, with housing supply outstripping housing demand. This is good news for real estate investors who want to buy a suitable rental property at a reasonable price without getting involved in controversy.
Basic housing market statistics for Toledo:
Toledo's home value index was $109,347 in May 2022.
Last year, home prices in Toledo increased by 16.3%.
Over the past five years, real estate prices in Toledo have increased by more than 72%.
The median list price for a single-family home in Toledo is approximately $119,000
The median sales price for a single-family home in Toledo is $128,500.
The ratio of the sale price to the list price is 99.1%, housing on average is sold at a price slightly lower than the list price.
Of Toledo's 25 neighborhoods, Westgate is the most expensive, with a median price of $190,000.
The least expensive neighborhood in Toledo is North River, with a median home sale price of $28,700.
Solid rental market
Toledo is one of 25 cities in the United States where you can quickly pay your rent with a Social Security check. This may be one reason why nearly half of Toledo's households are renters rather than landlords. The real estate market in Toledo is solid and stable. Real estate prices in Toledo are expected to increase by 11.0%, while sales in the market are expected to increase by approximately 2.4%.
Basic rental market statistics for Toledo:
According to a recent study, the average rent for a three-bedroom apartment in Toledo is $975 per month.
Rents in Toledo are up 9% year-over-year.
In the past three years, rents for three-bedroom homes in Toledo have increased by 226%.
Rents account for 45% of all occupied housing in Toledo.
Historical price fluctuations and housing availability
When narrowing down the options for purchasing real estate in the real estate market, investors often include data on housing price dynamics and affordability in their analyses. Price fluctuations in the past indicate a potential future rise in real estate prices. Buying inexpensive housing could pay off with high profitability in the future.
The latest Toledo real estate analysis report shows:
House price change over 5 years: 48.4%
Annual house price change: 12.1%
Monthly housing price index: 1.0%
The Housing Affordability Index is a report that shows how affordable housing is in any given market in the United States. However, a market where accommodation is cheap is not necessarily a bad rental market. For example, homes in Toledo are very affordable compared to other U.S. cities, but about 50% of households rent. This can be due to many factors, such as economic level, lack of housing, and lifestyle choices. In preparing the analysis, the researchers compared median household income to the 20% lower median price of existing single-family homes purchased with traditional mortgages.