Bonnie is licensed in both Ohio and Kentucky, specializing in residential, commercial, estate sales, and investment portfolios. Bonnie won the Best Of Zillow award for her customer reviews and sales in 2020. She also won Rookie Of The Year and Top Earner award for Ken Perry Realty in 2020. She is a proud member of the Cincinnati Area Board of Realtors Arbitration and Grievance Committee.
Should I Rent in Cincinnati, OH or Memphis, TN?
With Cincinnati boasting the nation’s fastest-selling housing market, it is easy to approach real estate in the Queen City with trepidation. Perhaps “boasting” doesn’t come to mind if you’re actively house hunting and the 10th offer you’ve written was denied yet again. It’s survival of the fittest out there in the most dynamic real estate market we have been witness to since the 80s. This is a product of being highly ranked as one of the best places to live in the nation, #44 to be exact per the latest U.S. News and World Report article. Cincinnati has even more bragging rates as being ranked #17 for best places to live for families by the same news group. This makes for high demand with significantly limited housing options.
๏ปฟIn laymen’s terms, which type of market we’re experiencing (buyer’s market versus seller’s market) is analyzed simply by looking at 5-6 month’s of housing supply as being a balanced market. Per Cincinnati MLS statistics, Cincinnati is currently around 0.7 months of supply. A seller’s market it most certainly is. This is a staggering shift from this time last year at 0.96 months of inventory. Cincy’s housing market is up 18% from last year, and as Zillow’s index reveals below, is growing exponentially.
Option B is to hold out, sit tight, wait until the market settles down, and rent for another year (read: sigh, seriously?). Cincinnati real estate metrics reveal that half of the real estate inventory consists of rentals. It’s the lesser of two evils as Cincinnati also claims yet another accolade of the 6th biggest rental rate increase in the nation. Both market homes for purchase and rentals are slim pickings these days. Prices are soaring on market homes, new construction, and rental properties. This begs the question: just where do you decide to hang your hat?
Looking to our southern neighbor in Tennessee, the Memphis housing market is smoking like their famous BBQ, as sales also grew 18% from last year. Memphis offers a diversified population, major local business growth and expects at least 30k new residents to flock to this entertainment mecca in upcoming years. This could make for the perfect storm of need for housing inventory. Millennials have come to Memphis in droves, adding a new segment to the already assorted community.
As is true in Cincinnati, the Memphis rental market is being highly driven by lack of housing inventory available for purchase. ABC News local Memphis affiliate reported that rental rates are up 23% from last year. The affordable rentals seem to be few and far between in Memphis, if you’re looking for digs under $1k/month, as illustrated below.
Let’s look at the markets from an entirely different perspective-that of an investor. Friend or foe, the cash investor is in a phenomenal position right now to knock out offers from other would-be buyers in both Cincinnati and Memphis. Cash is king and in as the King would say, “I’m all shook up” over the potential for ROI in Memphis. Per Realtor.com, rental rates are hitting historic highs as the median rent is currently $1150/month. Since many potential owner-occupants have trashed the idea of homeownership this year, out of state investors look to Memphis real estate investing as priceless treasure.
Just because sale prices are skyrocketing, it doesn’t reflect organic value growth in all cases. Memphis is experiencing home value appreciation close to 19% up from 2020 per Zillow’s value index.
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Gabbi knew that real estate was the right career from the start. She is now dual licensed in both Kentucky and Ohio. She had her first sale within a month of getting licensed and hit her first million in volume within her first 6 months. She will have her real estate license for the rest of her life. Call her anytime if you have questions about becoming a real estate agent. She loves to share her passion for real estate with others!
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