About the Dayton Housing Market

Dayton, Ohio is another great place to invest in rental properties in 2023. Home prices are low, cash flow from single-family rental property is strong and the real estate market favors buyers.

Dayton is a city in southwestern Ohio, situated just north of Cincinnati. It is part of the Miami Valley region and has a population of 624,000. It has a small but diverse economy driven by manufacturing, logistics, aerospace engineering, military and government sectors.

The greater downtown Dayton area has seen more than $2 billion in private investment over the past 12 years, as hundreds of new apartments and hotel rooms have been constructed. Developers are planning projects that could push that total north of $3 billion, according to the Downtown Dayton Partnership.

The largest employers include Wright-Patterson Air Force Base, Premier Health Partners, Kettering Health Network, Montgomery County and The Kroger Company.

Median Household Income: $61,986
Metro Population: 813,516
11-Year Population Growth: 11.73%
Median Home Price: $186,059
Median Rent Per Month: $1,244 (0.67% rent-to-value ratio)
1-Year Equity Growth: 11.3%
Tenant Laws: Landlord-Friendly

8-Year Equity Growth (January 2014 – December 2022): 79%
1-Year Rent Growth: 8%
8-Year Rent Growth (January 2014 – December 2022): 55%
Job Growth: +9,800 CES jobs created over the last year
1-Year Job Growth Rate: 2.62% (32% lower than the national average)
Unemployment Rate: 4.1% (11% higher than the national average)
Flood Risk: 10%

What to Like
Excellent price-to-rent ratios
Low home prices
Affordable cost of living

What to Watch Out For
Small market
Some economic challenges
Higher property taxes

– Dayton has a diverse economy, with strengths in industries like aerospace, healthcare, and logistics. The city has seen job growth in recent years, with companies like Fuyao Glass and CareSource expanding their operations in the area.
– Dayton has a low cost of living and a high quality of life, with affordable housing, good schools, and plenty of recreational opportunities. The city’s proximity to other major cities like Cincinnati and Columbus also makes it an attractive location for those who want access to urban amenities while still enjoying a smaller, more affordable city.
– Dayton has a strong sense of community, with active neighborhood associations and a number of local events and festivals. The city has also invested in initiatives like the Dayton Neighborhood Leadership Institute, which helps to empower local leaders and promote community development.
– Home values in the Dayton metro area have risen by 79.22% in the last 8 years, at an annual rate of 8.69%.
– Dayton has a high concentration of people holding advanced degrees in the STEM fields (science, technology, engineering, mathematics) which help fuel its reputation as a STEM powerhouse.

Steady home price appreciation
Over the last eight years, home values in the Dayton metro area have increased by 79.22%, at an average annual rate of 8.69%. In Dayton, Ohio, members of RealWealth see an average RTV of 0.95%. With the right guidance, it’s possible to find high cash flow properties in the area.

Strong job market
Dayton has seen a 23% increase in tech jobs in the past five years, bringing the total number of tech jobs to 18,460 in 2021. Dayton’s status as an up-and-coming market for tech talent was recently recognized by CBRE, which ranked it No. 2 on its list of the top emerging markets for North American tech talent.

Economic Diversification
Dayton’s downtown area has seen significant development in recent years, with new businesses, restaurants, and residential properties opening up. The city has invested in public spaces like RiverScape MetroPark and the Dayton Arcade, which have helped to attract visitors and residents alike.

Purchasing Property in Dayton

Even though the price of homes in Dayton is low compared to other cities, 53% of city residents rent. This is a strong indication that there is a strong rental market in Dayton. Here, it is possible to buy a fully renovated cash flow property in a good neighborhood for an average of $131,000. This is over 60% less than the national average price of homes.

The median price of a home in Dayton is $186,058—that’s 45.8% less than the national average. The average monthly rent is $1,244 and this puts the average rent to value ratio for Dayton investment properties at 0.67%.

The Dayton neighborhoods that have experienced the most growth in their home values since the year 2000 include Rosewood Park, Downtown, Oak Grove Park, University Park East, University of Dayton, University Park, Pheasant Hill, Old Lane Park, Germantown Meadow and Donnybrook Park.

Dayton, Ohio

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