Americans flock to heartland city where they can get a $200K discount on a home... but Wall St is closing in

Daily Mail​

29-04-2025

Affordable home prices and rising demand in the area are turning one surprising small city into a hotbed for real estate competition.
Toledo, OH, once attracted the attention of local homebuyers who could afford it, but has now caught the eye of out-of-state investors with deep pockets, who have set14643897 off a real estate tug-of-war.
While the median home price jumped 18 percent in March to $235,000, that's still is still about $200,000 cheaper than the US median, says Realtor.com.
'We do get a lot of calls from out of state investors who are paying cash,' local realtor Megan Hornsby tells DailyMail.com
The news comes amid crashing prices elsewhere in the US, including spots in Florida and four metros in Texas.
She adds that the rate at which out-of-state investors are snapping up properties has gotten so out of control that Toledo has enacted new rental property ordinances to try to curb people coming in from out of town.
'They they did a paint ordinance where there can't be any peeling paint on rental properties. Some people are saying it's unconstitutional because it goes after landlords and doesn't go after owner occupied homes.'
Most of the investors buying the homes then rent them out to locals, but fail to keep up with managing the property from afar, letting lawns grow to long and small fixes to remain broken.
'It's very hard to find a good management company around here,' says Hornsby. 'They have an app now where you can report properties that are falling into disrepair.'
The affordable prices and high demand has pushed Toledo to the top of the Wall Street Journal/Realtor.com Housing Market Ranking.
It evaluates cities based on home price growth, economic momentum, lifestyle amenities, and resilience to climate change.
In March, Toledo's median home listing price rose 18 percent year-over-year to $235,000, in large part by investors who have discovered the city.
Data firm Cotality reports that investor purchases of single-family homes in the city doubled over the last seven years, from 15 percent in 2018 to 30 percent in early 2025.
'Most of the calls that I get from out-of-state people are because they wanna buy a property cheap and then use it as a rental,' Hornsby says. 'The city of Toledo I think has almost 50 percent rental properties at this point.'
Most of the out-of-state investors are coming from large cities like New York and San Francisco.
Others are coming from and even countries like Canada and Italy, who see Toledo as a hidden opportunity.
Outdoor space is also a big draw for people moving to Toledo, which sits on a river. Only the top 5% of Toledo homes are priced above $336,000, but that still means you can find spacious houses on large lots for affordable prices
Because of the investor interest, traditional and local buyers are being frozen out of the market.
Real estate agents say cash buyers are quick to waive appraisals and inspections in order to secure deals faster and beat out first-time buyers or buyers who need to secure a mortgage.
Rents in the area are also rising.
A two-bedroom in Toledo is normally $1,000 a month, but because of high demand and property tax increases that has shot up to about $1,500.
As for Toledo, there has also been a lot of interest in the city after it was awarded a few grants to revitalize downtown.
'We have a couple of outdoor shopping dining restaurant areas.
'Downtown Toledo has seen a major resurgence with lots of money invested and they're trying to get additional housing down there to support everything available.
'We're on the river so there's a concert series. There's a lot more events and things to do in my opinion then there used to be even just a couple years ago.'
Pictured: A 4 bed, 2.5 bath house that's 2,032 square feet priced at $325,000 in Toledo, Ohio
Elsewhere in Ohio, housing prices are skyrocketing where they were once affordable.
In Cleveland, Ohio, home sale prices rose 15 percent in 2024 - the most of any of the 50 biggest US cities.
'Places that have long been known as affordable places to live, like Cleveland are now seeing double-digit price increases - and that's after home prices skyrocketed during the pandemic,' said Redfin senior economist Elijah de la Campa.
Bonnie Phillips, a Redfin Premier real estate agent in Cleveland, explained some of the reasons why prices are on the up in the city.
'A lot of sellers have a very specific number in mind because they saw their neighbor sell for $40,000 over the asking price during the pandemic' she said.
They're willing to walk away if they don't get that number, which is one factor keeping prices high.'
She continued: 'Cleveland may still have a reputation as an affordable-housing haven among out-of-staters, but not so much among locals.'