It’s Time To Buy a Home In Toledo
Ohio rent prices increase in 2018, with Toledo seeing the biggest spike, so here's everything you need to know about buying versus renting a home in Toledo this year.
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For many people in Toledo-- and all across the country-- buying a home is a major life goal. However, deciding when to buy versus when to rent involves several factors. When a city sees an economic boom, this can have various impacts on rent rates and home costs. At some point paying a mortgage will become a sounder investment versus paying increasing rent rates. That time seems to be coming for those living in Toledo.
In this article, we’ll discuss everything you need to know about buying versus renting a home in Toledo this year, including:
- Rent trends across OH and the country
- Economic growth in Toledo
- How rising rent in Toledo makes it a great time to buy a home
National Rent Trends
Across the country we are seeing a spike in rent rates in smaller burgeoning markets. In most cases this is a balance of supply and demand, as the job market improves, and more housing is needed, the market and rents will adjust accordingly.
For 2018, YardiMatrix data analysis showed that the national average for rent has a 3.1% increase year over year, coming in at $1,419. Some of the biggest spikes came from smaller cities like Reno, NV, Midland, TX, and Odessa, TX as the biggests jumps for the year. Out of the 250 cities analyzed across the country only 8 saw a decrease in rent year over year. Of those 8 only 2 saw a decrease of more than 1%, College Station, TX and Baton Rouge, LA.
Ohio Rent Trends
Ohio’s growth mirrors the national trend
The Ohio data aligned with the national trends in rent increase in 2018 compared to last year. While the 6 largest cities analyzed saw an increase near the 3.1% national average, one city saw a significant spike against the national trend.
In 2018 rent prices in Toledo jumped 6% compared to 2017 rates. In 2018 Toledo’s economic growth has outpaced Cincinnati, Cleveland, and Columbus, which impacted rent prices as well as other metrics.
Cleveland and Columbus rent also rose faster than the national average rate of 3.1%, at 3.8% and 3.6% respectively, compared to last year. The price of apartments in Dayton and Akron have increased the least over the past year.
In general Ohio rent prices are well below the national average, the most expensive being Cleveland at $1,056. Following Cleveland is Cincinnati with an average of $962 a month. By the end of the year Columbus rent rates averages at $910 per month. While Toledo does have the lowest rent average at $709 a month, the increase from last year is significant.
You can check out the full report to compare the rental market in Ohio with other cities in the U.S.
Toledo by the Numbers
Toledo’s Economic Growth Outpacing Other Major Ohio Cities
The biggest factor impacting this growth is an increase in employment opportunities, which increases the demand for housing and in turn rent prices. In fact Toledo is one of the nation’s leaders in attracting economic development.
Site Selection magazine announced Toledo ranks third among mid-sized cities for economic development. One notable contributor to employment is the Credit Adjustment call center, who hired 60 new employees in 2018, with hopes to add hundreds of more employees.
The Credit Adjustments call center isn’t the only employer behind Toledo’s economic boom. Other major employers in the Toledo area include:
- ProMedica. A mission-based, not-for-profit integrated healthcare organization headquartered in Toledo, Ohio. It serves communities in 30 states. The organization offers acute and ambulatory care, an insurance company with a dental plan, and post-acute and academic business lines. The organization has more than 70,000 employees,13 hospitals, 2,700 physicians and advanced practice providers with privileges. Driven by its Mission to improve your health and well-being, ProMedica has been nationally recognized for its advocacy programs and efforts to address social determinants of health. Learn More
- University of Toledo. The University of Toledo is dedicated to improving the world through discovery, helping students succeed and patients heal. As a major public research university, UT offers a large network of richly diverse people and services, generous benefits, flexible work schedules and a healthy work-life balance, all on vibrant campuses featuring lots of green space. And, because UT is the second largest employer in northwest Ohio, UT faculty and staff have many options for professional growth and personal job satisfaction. Learn More
- Owens Corning. For 80 years, Owens Corning has been a leader in insulation, roofing, and composites. Their global presence, with 19,000 people in 37 countries, helps them keep a pulse on the needs of customers around the world. Learn More
In the magazine poll, Toledo is graded against other 'Tier Two' cities, or cities with a population between 200,000 and 1 million inhabitants. The poll looks at development projects with either $1 million dollars of investment, 20,000 square feet in space or that employ at least 20 people. Their data showed Toledo ranks third among mid-sized cities nationwide with 31-project meeting at least one of those criteria. Last year Toledo ranked 7th on the list.
Time to Buy
Rising Rents Means It’s Time to Buy a Home in Toledo
The median home value in Toledo is $69,600, rising 5% over the past year, and an increase of 4.8% is projected over the next year. The median home price listings is $79,900 and the median price of homes sold is $72,000.
While rising these increases over last year are at a slower rate than the rent increases. These changes come after a significant drop in home values from 2009 to 2012. Home values began increasing again in 2014, currently almost reaching the previous high in 2010.
It’s important to act fast when planning to buy a home in Toledo. Homes are selling much faster as the inventory drops and the demand for homes increases.
Homes for sale in upper Woods County and Lucas County only lasted on the market an average of 83 days in November of 2018. In that month 493 homes were sold an increase of 8/4% from the same time last year. While the total average listings in November was only 2,069 a 7.9% drop from the previous year.
The decline in foreclosures hitting the market is impacting this gradual change. During the recession one in three homes for sale was in foreclosure or distressed. That percentage is much smaller today, reducing the total homes on the market, or current inventory.
Now is the time to buy a home in the Toledo market as employment opportunities continue to grow and increase the housing demand, the rental market is rates are continuing to spike. Buy a home in Toledo now before the home value rates catch up with the rental market, with help from HER Realtors.