Cincinnati is booming and currently ranks as the best-performing metro area in Ohio, according to year-ago growth in the Moody’s Analytics Business Cycle Index.
Real estate investors are looking for yield outside of primary markets, and Cincinnati has been a beneficiary of that trend, and the market is booming, according to the latest Arbor blog.
Cincinnati Investment Sales Market
Multifamily investment activity in Cincinnati has reached a torrid pace. Sales volume hit a record $609.2 million during 2018, according to Real Capital Analytics (RCA). This volume level eclipsed the 2017 total of $316.7 million, and the previous record-high of $447.3 million in 2016, according to Arbor.
The average sale price in 2018 was $75,360/unit, up more than 20% as compared with $62,754/unit in 2017. Additionally, the market started off 2019 on a high note. The first three months of the year recorded a whopping $260.8 million in volume. This was significantly higher than the five-year quarterly average of $96.8 million.
rent growth continues
Apartment rent growth in the Cincinnati market continues to accelerate.
According to Reis, the average asking rent finished the first quarter of 2019 at $920/unit, up 3.8% from $886/unit one year ago. Rent growth for 2018 was 4.1%, matching 2016 for the market’s highest annual growth rate on record. Class A rent growth was 4.2% and Class B/C was 3.3%. Reis forecasts asking rents overall to increase by 3.8% during 2019.