Construction and development in downtown Cleveland drives the rental market up.
If you drive through downtown Cleveland today you will see cranes dotted across the skyline . Warehouses, derelict buildings and even car lots are being turned into urban chic apartments which are attracting a hefty price tag.
ABC News ran an article in August this year covering this topic, they called the article “Vibrant downtown Cleveland neighbourhoods draw new development and rising rents, pricing many people out”
The article highlighted the fact the worst-kept secret in Cleveland is that downtown Cleveland is back with a bang. New restaurants , boutique hotels and designer shops have made downtown Cleveland a very attractive place to live but now a very expensive one. Even with new apartment projects popping up all over downtown Cleveland, many of them are being advertised as “luxury living,” but they come with luxury prices.
The article also looked at rent comparables for the last seven years, if we look at a one bed/one bath in Downtown Cleveland in 2011 the rent was $820 a month, if we look at the rental market today we can see that this has risen on average to $1,252 per month (this is more than a fifty per cent increase in a number of years)
The situation is no better for two bedroom apartments, in 2011 a two bedroom apartment would have rented $1,252 per month but now they are renting for $1,890 per month. The rent levels in Cleveland are starting to come on par like other large US cities like Washington and Seattle.
Apart from the all of the new developments taking place another distinguishing factor is the occupancy levels in downtown Cleveland, it is currently running at over 95%. Even with all of these new apartments even when an apartment does become vacant it is snapped up within a number of days.
Another interesting point in the article is how Cleveland has marketed itself in the last few years, it has become a beacon of the Mid West for developers and investment by continually pushing its location, people and local enterprises. Large scale developers have used promotional material to sell a lifestyle not just a property, one they believe Cleveland can deliver.
But all of this development is great for a nice night out or a busy shopping day but it is not so nice for some people who can not afford the high rent levels anymore. The Downtown Cleveland Residents Association have stated this very fact, they said all of the development is great for the city but no so great if some people can not afford to live there anymore, we don’t want it to be an enclave just for the wealthy.
The rising rents in downtown are having a rippling effect in other areas in close proximity to the city, many people who would have lived in the city are now looking further a field to find more reasonable rent levels.
Areas like Hough, St Clair Superior, Fairfax, Ashbury Towers, North Broadway are now on the investors radar as these are all a short distance to downtown Cleveland, these areas are seeing increased rental demands and increased rents.
Global Investments have exclusive agreements with many US Brokers and Agents with properties in these areas, if you would like to find out more please contact: