Renter demand in Cleveland is forecast to remain steady as the pace of job creation ticks higher this year, says our Research Services team. Payroll growth has generated new households despite the metro’s late start to the recovery.
This was largely the result of the economy transitioning from lower-waged labor and manufacturing positions to high-income, skilled positions in the education and health services sector. In fact, one-third of the jobs added in the metro last year were in this sector, fueled by major healthcare employers including the Cleveland Clinic. This sector had 24,000 more jobs at the end of the first quarter than at the pre-recession peak. The leisure and hospitality sector, meanwhile, contributed another 38 percent of the jobs generated in the past 12 months, supporting renter household formation.
Although manufacturing has been a drag on payrolls recently, the metro’s position as an auto-parts supplier should benefit from record auto sales. While demand is slowly rising, new supply has been scarce. Multifamily development is paltry compared to most other metros across the country, where apartment construction will reach a 30-year high.
Forecast for Cleveland Market
From employment trends to home prices, find out what our Research Services team predicts for the Cleveland market. This market report evaluates multiple sectors of the economy that affect risk-and-reward for single-family real estate investors like yourself.