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Market Insight - Cincinnati

PRI
January 18, 2020

Moody’s has ranked Cincinnati as the best-performing metro area in Ohio. A unique and historic city located on the Ohio River and with a population of 2.2 million, Cincinnati is part of the 24th largest U.S. metropolitan area and it is growing fast!

Winston Churchill once called Cincinnati the most beautiful of the inland cities of the union.

Cincinnati is one of the best places to buy rental property in 2020. Downtown Cincinnati is attracting both regional and out-of-state investors seeking steady cash flow for low initial capital expenditures.

Older Class B and C properties continue to be revitalized into space producing market-rate to above-market-rate average rent.

Both Cincinnati and neighboring city, Dayton, are rapidly coming together in a rush of housing, retail and commercial development across Warren and Butler counties.

Investors are getting upwards of 7 percent average cap rate.

Multifamily sales increased by over 25 percent in 2019. Class B and C properties contributed to
a majority of these transactions as these buildings exchanged hands approximately a quarter more than the previous annual 12-month period.

The area is among the nation’s 25 fastest developing regions and since 1990 the county’s population has increased by 14%. Cincinnati’s fundamentals have the best combination of demand and rent growth of any metro.

Multifamily market is on the rise the region is garnering attention for its strong labor pool, low cost of living, and quality of life offerings. Cincinnati is a popular destination for new and relocating corporate headquarters, including many Fortune 500 and Fortune 1000 companies.

All of these are good signs for investors that are looking to invest in cash flow property with a strong chance of appreciation.

As homeownership amongst millennials decreases and average multifamily prices continue to stay relatively low, Cincinnati’s strong market will likely fortify in years to come.

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