Cincinnati has topped recent lists as a competitive U.S. housing market. Zillow reported that the region experienced a 7.9 percent year-over-year increase in rent in 2023, the highest increase among all cities, passing Boston, Providence, and Kansas City. Zillow also reported Cincinnati as the second hottest market in 2024 with homes lasting an average of just five days on the market. And the average home value also increased to $240,393, up 8.1 percent.
Rent increases and a competitive housing market mean Cincinnati is in demand, which can be a good sign for the city’s economic development, but it’s a challenging time for those looking to buy.
The city’s Connected Communities program, announced in January, aims to modify zoning and land-use codes to encourage development, density, and equitable growth across the city. The plan could not only increase the overall number of housing options but also allow for the creation of developments that cater to different consumer needs.
While adapting existing properties is always important, building new homes adds inventory to the Cincinnati market, says Jason Wisniewski, vice president of Grand Communities, Fischer Homes’ land development company. He stays on top of the trends that vary by market. “Most municipalities have a strong sense of identity and want new development to maintain and enhance that identity,” he says. “Fischer Homes is always mindful of working closely with local leaders to create developments that fit the wants, needs, and desires of local communities.”
Wisniewski emphasizes the need for context-specific development, though he knows that balancing the focus on local identity with meeting the needs of buyers and renters presents a challenge due to a variety of trends and interests across the region. He says three key trends and highlights currently shaping Cincinnati’s housing market are building onto a neighborhood’s identity, utilizing smaller lots, and fighting NIMBY-ism.
Each community across the region has its own identity that Wisniewski says is important to maintain. The city of Cincinnati alone is home to 52 neighborhoods, and each community is unique. “We really need to be contextual in our projects,” says Wisniewski. “What works in one market might not work in another.” For example, downtown residents typically have access to a variety of amenities and so developers don’t face strong demand from prospective buyers to build a pool or gym in an apartment building.
The interest in smaller lots (such as Fischer’s model home in Union, Kentucky, above) has continued to increase. “It all comes down to time,” says Wisniewski. “People want to spend less time mowing the grass and more time engaged in recreational activities with friends and family.”
The future of real estate dangles by what he refers to as the “Not in My Back Yard” attitude many people have. “Many good projects are denied because a handful of very vocal residents do not want change, and those voices limit opportunities for people to find good homes in good communities,” says Wisniewski.