Cincinnati, OH Statistics:

Cincinnati is a relatively small (310K population) Midwest city that has a very young and educated population. Seventy eight percent are below 55 years of age, and 48% have a college degree. The area has a very diversified employment base, with the largest employer being healthcare at 17%, followed by manufacturing at 10%. The city claims it is home to more Fortune 500 companies per capita than any other city in the US. The population and available jobs are growing, albeit slowly. Since 2000, the city has added on average 11K new residents per year and is currently growing at 0.16% annually.

Cincy boasts affordable housing, with the median home costing $269K and the average rent standing at $1,041. The median household income of $49K allows a family to afford $1,225 per month for housing. The typical house would cost $2,185 for mortgage, taxes and insurance, which explains why over 60% of residents rent. There are currently 140K single family homes and apartments in the city. Vacancy is relatively low, at 4.9% (top 5 in country), which implies supply is constrained. Rents in the area are up over 40% since the pandemic but, due to new supply, are now growing at less than 1% year. The city believes they are still short 7,500 housing units, so they are looking at ways to make it easier for developers to build in some neglected areas. In 2024, there are 1,811 new units available to lease, 3,611 under construction and another 6,005 in the planning pre-permit stage. If the 6K in planning come to fruition, the housing stock will increase 8% over the next 4 years. With modest population growth and an increase in supply, rent growth will most likely remain tepid.

Cincinnati has a high level of poverty and crime. The city ranks a 3, with 100 being the safest. 46 out of 1000 residents are victim of a violent or property crime per year. Twenty five percent of the residents live below the poverty line. This makes the old real estate adage, “location, location, location” especially critical when evaluating a deal in the city. You have to worry about where the new supply is being built and where the crime is concentrated.