Why Cleveland's Housing Market Defies Its Stable Reputation

Written by:

Steve Marcinuk

Date:

15 May 2026

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Mention Cleveland to most real estate investors and the reaction is predictable: affordable, stable, and unremarkable. That perception is increasingly out of step with what is actually happening on the ground. Inventory is tight, multiple-offer situations are common, and sellers who prepare their homes correctly are routinely exceeding asking prices by significant margins. For those paying attention, the market deserves a second look.

Judy Makaryk-Rosen, Team Lead at Mak & Co. with Berkshire Hathaway HomeServices Professional Realty, has spent three decades navigating the Cleveland market through multiple cycles. Her perspective cuts through the national noise about frozen housing markets and rate-locked sellers, offering a grounded view of what is actually moving buyers and deals in northeast Ohio today.

A Market More Competitive Than Its Reputation Suggests

The dominant national narrative heading into 2026 has been one of paralysis: sellers unwilling to give up low-rate mortgages, buyers priced out by elevated rates, and deal volume stagnating. In suburban Cleveland, that story only partially applies.

Buyer activity has not slowed. What has changed is buyer expectation. Move-in ready homes generate the most competition, often going under contract within three to four days and attracting multiple offers. Properties that need work, by contrast, sit longer and create openings for buyers willing to tolerate renovation. “We’re much more seller-driven because we’re low in inventory here,” Makaryk-Rosen says.

The preparation gap between listings is one of the more telling dynamics in the current market. Makaryk-Rosen recently guided a Hudson seller through months of pre-listing work, replacing carpeting, repainting throughout, updating cabinet hardware, and addressing small cosmetic details. The home was listed in the low $900,000s and sold for $1.1 million with a clean appraisal. Presenting a home as requiring no immediate work is no longer just a nicety. In a market where buyers are moving fast and competing hard, it is a pricing strategy.

The Appraisal Gap Problem

As prices push higher, the gap between what buyers are willing to pay and what appraisers will support has become one of the most common friction points in the market. Makaryk-Rosen identifies appraisals as the leading deal killer in her practice, and her approach reflects hard-won caution.

She pushes buyers to sign off on appraisal gap coverage as high as possible, but will walk away from a transaction rather than allow a buyer to significantly overpay relative to appraised value. A recent mutual release involved a gap of roughly $40,000 that neither party was willing to bridge. “I don’t want my buyers overpaying for an appraisal, because in the long term, that’s going to be painful when they go to sell,” she says.

Sellers, meanwhile, need to rethink their pricing strategy. The old instinct to list below market value and leave room for negotiation no longer serves sellers well in competitive pockets. Well-priced homes in desirable areas attract multiple offers within days. “You cannot leave room on the table,” Makaryk-Rosen says. Pricing to the strongest defensible comparable, rather than below it, is now the more effective approach.

Hyper-Local Dynamics and the Tax Factor

Understanding which neighborhoods are outperforming requires more than a zip code search. Two dynamics are shaping demand at the neighborhood level: walkability and tax burden.

Lakewood, an inner-ring suburb on the west side, is one of the city’s most active markets. Its walkability, proximity to restaurants, and access to downtown have made it a consistent draw for younger buyers. Demand is now spilling into adjacent West Park as buyers priced out of Lakewood look for comparable urban amenities at lower entry points.

Architecturally interesting neighborhoods like Cleveland Heights and Shaker Heights face a different challenge. Despite their appeal, elevated property taxes weigh on demand and suppress price appreciation relative to other communities. The situation is further complicated by a newer development: some Ohio school districts are pursuing a 1% local income tax on top of existing property taxes. For buyers relocating from out of state, this cost-of-ownership variable is easy to miss without local guidance.

Makaryk-Rosen stresses that the cost of living in a community extends well beyond property taxes, and that buyers need agents who understand the full picture. School district quality remains the most reliable demand driver, with communities like Solon, Orange, Hudson, Westlake, and Rocky River consistently drawing families.

Relocation as a Steady Demand Channel

Corporate relocation has historically been a reliable source of buyer activity in Cleveland, home to major employers including Sherwin-Williams, Eaton Corporation, Lubrizol, and Nestlé. While the volume of traditional corporate moves declined after COVID normalized remote work, the channel has not disappeared. Makaryk-Rosen notes current clients relocating from Columbus, Canada, and Texas.

The nature of relocation work, however, comes with a structural cost that many consumers are unaware of: agents working within a corporate relocation framework typically remit roughly 40% of their commission to the relocation management company before receiving any compensation. For agents, it is a trade-off between consistent deal flow and reduced economics per transaction.

For employers, the relocation process is a talent acquisition tool. Makaryk-Rosen has conducted physician tours for Cleveland Clinic and University Hospitals recruitment efforts, walking incoming doctors through neighborhoods suited to their family situations and commute preferences. The combination of strong medical institutions, affordable housing relative to coastal markets, and genuine quality-of-life amenities makes Cleveland a credible pitch to candidates weighing multiple offers.

The Investor Landscape

For capital, looking at Cleveland from the outside, the entry point story has changed. International investors from Israel and South America, along with domestic investors from New York, were historically able to acquire properties at steep discounts. That window has narrowed considerably. “You can’t steal properties like you used to,” Makaryk-Rosen says.

The more durable opportunity today is in the rental market. Rising home prices have pushed first-time buyers to the sidelines, expanding the renter pool. University proximity adds another layer of demand, with institutions including Case Western Reserve, John Carroll, Kent State, Oberlin, and Hiram all generating consistent tenant activity. Communities like Parma and Euclid offer entry-level acquisition prices, sometimes under $100,000, that can work for buy-and-hold investors with access to their own renovation contractors.

What the Next Year May Bring

The conditions that have defined the Cleveland market are unlikely to change dramatically in the near term. Inventory remains constrained, buyer demand is active, and well-prepared listings in strong school districts will continue to attract competition.

The more interesting trend to watch may be behavioral. As buyers lose out on multiple-offer situations, some are beginning to recalibrate toward homes that need work, accepting renovation risk in exchange for reduced competition. If that pattern broadens, it could gradually ease pressure on move-in ready inventory while creating a more segmented market between turnkey and value-add properties.

For sellers, the preparation imperative is only likely to intensify. Buyers have been conditioned by years of polished listing photography and staged interiors to expect a finished product. Agents who can guide sellers through the pre-listing process and price the result correctly will continue to hold a meaningful advantage. “Sleepy Cleveland,” as Makaryk-Rosen puts it, “is a lot more active than people may think.”

About the Expert: Judy Makaryk-Rosen is the Team Lead at Mak & Co. with Berkshire Hathaway HomeServices Professional Realty, covering the Cleveland, Ohio residential market and surrounding suburban communities. 

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.