Cleveland Market, Job Growth and Stability

[Colin Specter]

Hello friends, 

REI newbie here and I have been looking at the Cleveland, OH market for Buy & Hold multi-family properties (2-4 unit).

Some of my big questions are around the Cleveland economy and my lack of local knowledge:

Is this recent boom in Cleveland housing and rental demand driven primarily by the booming oil business? 

If so, what are the thoughts on rental demand if this next election shuts down this type of oil drilling?

What areas of Cleveland are most exposed to this risk and would be considered more speculative that I should avoid?

What areas do you believe will weather the storm?

Aside from oil, what other industries are fueling the job growth and potential long-term stability in the Cleveland, OH region?

Thank you in advance for anyone's input! 

Colin

[James Wise]

@Colin Specter

When looking into the Cleveland market you should check out

The Ultimate Guide to Grading Cleveland Neighborhoods. to see what you can expect in certain neighborhoods. Here is some other information on the area.

Business

• Intel Corp. has named Northeast Ohio as one of the 3 top Digital Communities in the U.S.
• Northeast Ohio is one of the hottest entrepreneur regions in the nation - (Entrepreneur)
• Ten Fortune 500 companies are headquartered in North Eastern Ohio including: Goodyear Tire, Cliffs Natural Resources, First Energy, Sherwin Williams, Eaton, Travel Centers of America, Progressive Insurance, Aleris, Parker Hannifin, Key Corp
• Regional Banking Hub: home to one of 12 Federal Reserve Banks

North East Ohio Employment

• Cleveland is among the Top 10 job markets for new college graduates - (CNN)
• The region employs more than 120,000 healthcare professionals, including 35,000 at the Cleveland Clinic and 14,000 at University Hospitals
• 70% of Fortune 500 companies have a presence
• More than 400 bioscience companies offer new life science research
• Home to 27 area colleges and universities
• Cleveland’s Metropark System is home to 22,000 acres of various landscapes and a major contributor to the economy attracting more than 42 million commuters annually

Living

• Northeast Ohio boasts more lakeshore than any other metropolitan area in the world
• Cleveland is the second largest live theater district in the U.S.
• Home to four professional sports teams
• Home of the Rock-n-Roll Hall of Fame with 7+ million visitors annually
• Cleveland is one of the Top Cities for food lovers with over 1,000 food places and many famous chef-restaurateurs
• Cleveland Clinic named a Top Four Hospital in the U.S. and #1 heart hospital in the nation for the past 18 years.
• University Hospitals named one of nation’s best hospitals - (U.S. News & World Report)
• Home of the nation’s first Medical Mart
• Home of the 100-year old Westside Market, one of nation’s oldest public markets

Economy

• Cost of living is well below the national average
• Cleveland offers one of the best price/rent ratios in the nation
• Rent demand is at an all-time high
• Northeast Ohio boasts a regional economy of $170 billion
• The region is undergoing nearly $11 billion in major capital investment
• Cleveland has the fastest growing healthcare economy in the U.S.