Ohio’s Real Estate Shake-Up: 7 Home Types Losing Value By 2025 (And 10 Ready To Boom!)

Ohio’s housing landscape is shifting faster than a Midwestern thunderstorm! Some property types are sliding downhill while others are climbing to new heights.

As a real estate designer who’s watched Ohio neighborhoods transform over decades, I’m spilling the beans on which homes will tank and which will treasure up by 2025.

Grab your notepad, this forecast might just save your next investment.

1. Older Condominiums: Yesterday’s Darlings, Today’s Discounts

Aging condos built before 2000 are losing their sparkle across Ohio. Their outdated amenities and rising HOA fees make buyers run for the hills! Most lack the open floor plans and smart home features younger buyers crave.

Though once affordable entry points to homeownership, these units now compete with newer, shinier options. Maintenance costs pile up as buildings age, creating a perfect storm for depreciation.

Many older complexes also lack energy efficiency, pushing utility bills through the roof.

2. Large Suburban McMansions: Bigger Isn’t Better Anymore

Those massive 4,000+ square foot homes dotting Ohio’s suburbs are rapidly losing their appeal. Young families simply don’t want the maintenance headaches or heating bills these giants produce.

Where buyers once swooned over formal dining rooms and three-car garages, they now see wasted space and environmental irresponsibility. The market for these behemoths is shrinking faster than a wool sweater in hot water!

Remote work trends mean fewer executives need to live near city centers, further dampening demand for these status symbols.

3. Tiny Homes Without Land: Small Spaces, Smaller Returns

Tiny homes without land ownership are proving to be more fad than fortune in Ohio’s market. Without property rights, these diminutive dwellings depreciate like vehicles rather than appreciate like real estate.

Financing remains a major hurdle since most lenders won’t touch them with a ten-foot pole! Plus, Ohio’s harsh winters make the cramped quarters feel even smaller when you’re stuck inside for months.

Zoning restrictions across many Ohio municipalities further limit where these homes can legally park, severely restricting their resale market.

4. Energy-Inefficient Older Homes: Drafty Money Pits

Thinking of buying that adorable 1960s charmer with the drafty windows? Better bring a blanket, and a bigger budget!

Those pre-1970s homes with single-pane windows and barely-there insulation are turning into Ohio’s financial black holes. Winter heating costs can burn through your wallet faster than you can say “thermostat.”

Retrofitting these energy vampires often costs more than the bump in market value, and many first-time buyers bolt after their first heart-stopping utility bill. With energy costs rising and Ohio’s climate throwing mood swings, these homes are getting a much cooler reception on the market.

5. Properties Near Dying Malls: Retail Apocalypse Ripple Effect

Homes near Ohio’s failing shopping centers are watching their values crumble faster than the malls themselves. Once-vibrant retail corridors have transformed into eerie concrete wastelands, dragging neighborhood appeal down with them.

Security concerns rise as empty storefronts attract unwanted activities. The convenience factor that once boosted these locations has vanished along with the Sbarro and Sears.

Though some developers talk about mall revitalization, the reality for nearby homeowners is years of uncertainty. Property values often decline while plans languish in development limbo.

6. Water-Stressed Developments: Thirsty Homes, Dry Future

Though Ohio isn’t typically associated with water scarcity, certain developments face surprising challenges. Properties in areas with aging water infrastructure or contamination concerns are seeing buyers dry up faster than puddles in July.

Communities reliant on wells or outdated municipal systems face increasing scrutiny from lenders and insurers. Climate change is amplifying these concerns as rainfall patterns shift across the Midwest.

Homeowners in affected areas face skyrocketing water bills. Potential future assessments for infrastructure upgrades make these properties increasingly difficult to sell.

7. Homes With Outdated Luxury Features: Yesterday’s Wow Factor

Remember those jetted tubs and media rooms that sold houses in the early 2000s? They’re now the real estate equivalent of flip phones! Properties sporting these dated luxury features are struggling to maintain value across Ohio.

Massive whirlpool tubs waste water and space where buyers now want walk-in showers. Dedicated home theaters feel obsolete when streaming happens on any device, anywhere.

Costly to update and expensive to maintain, these formerly high-end features now signal to buyers that a major renovation awaits. And they’re adjusting their offers accordingly.

8. Historic And Unique Homes: Character Pays Dividends

Ohio’s historic gems are turning into gold mines! Properties with authentic character and architectural significance are commanding premium prices. Especially in revitalizing urban areas like Cincinnati’s Over-the-Rhine and Cleveland’s Ohio City.

Buyers increasingly crave the craftsmanship and irreplaceable details found in these homes. Those beautiful built-ins, original hardwood floors, and stained glass windows simply can’t be replicated in new construction.

Tax incentives for historic preservation add financial sweeteners to these properties’ inherent charm. The result? Strong appreciation potential through 2025 and beyond.

9. Multifamily Units: Cash Flow Champions

Duplexes, triplexes, and small apartment buildings across Ohio are becoming investment gold! Rising rents coupled with persistent housing shortages make these properties increasingly valuable, especially in university towns and growing urban centers.

Smart investors are snatching up these cash-flowing assets faster than buckeyes fall in autumn. The beauty lies in having tenants pay down your mortgage while property values climb steadily upward.

With remote work allowing more flexibility in living locations, smaller Ohio cities are becoming increasingly attractive. Multifamily housing stock in these areas is seeing unprecedented demand from both investors and renters.

10. Eco-Friendly And Modular Homes: Green Means Go

Sustainability isn’t just a buzzword in Ohio anymore, it’s a value booster! Homes with solar panels, energy-efficient systems, and sustainable materials are commanding premium prices and selling lightning-fast.

Modern modular construction offers both eco-benefits and affordability, attracting environmentally conscious buyers across all price points. The quality of these homes has skyrocketed, shedding old stereotypes about prefab housing.

As utility costs climb and climate awareness grows, energy-efficient homes are gaining ground. These properties will continue appreciating faster than their energy-hungry counterparts across Ohio’s varied markets.

11. Assisted Living Facilities: Silver Tsunami Investment

Did you know Ohio’s senior population is expected to surpass 2.6 million by 2030? So here’s the big question: are you overlooking the silver tsunami of real estate opportunity?

Ohio’s aging population is fueling a boom in specialized housing, and it’s not slowing down. From upscale continuing care communities to cozy residential care homes, properties designed for senior living are appreciating rapidly.

Savvy investors who tap into this market now could see major returns. The demand is undeniable as baby boomers enter their golden years en masse.

Facilities offering graduated care levels are especially valuable, letting residents age in place while maintaining independence. It’s a win for everyone involved.

12. Furnished Apartments And Condos: Move-In Ready Magic

Turnkey properties are turning heads across Ohio’s urban centers. Fully furnished apartments and condos that offer instant gratification are commanding premium prices, especially among young professionals and relocating employees.

The convenience factor simply cannot be overstated. After the pandemic shifted priorities, buyers are willing to pay significantly more to skip the furniture shopping and moving hassles.

Corporate housing demands and the rise of medium-term rentals further strengthen this market segment. Investors who nail the right aesthetic and location can tap into excellent appreciation potential.

13. Homes With ADUs: Two-For-One Value Proposition

I’ve worked with several Ohio clients eager to buy homes with Accessory Dwelling Units, and it’s easy to see why. One couple in Dayton rented out a converted garage apartment, covering nearly half their mortgage within a month.

Another family found the perfect detached backyard cottage for aging parents. Close enough for support but private enough for everyone.

Buyers love the flexibility, and with zoning changes supporting ADUs, these homes are becoming hot properties with great appreciation potential.

14. Starter Homes: Entry-Level Gold Mines

Modest homes under 1,500 square feet are becoming Ohio’s most competitive market segment. First-time buyers, downsizing empty-nesters, and investors are all fighting over these affordable properties, driving values upward at unprecedented rates.

The sweet spot combines manageable size with updated features in established neighborhoods. Homes that hit this trifecta often receive multiple offers within hours of listing.

With new construction costs soaring and apartment rents climbing, entry-level homes offer relative affordability. This ensures strong demand will continue pushing their values higher through 2025.

15. Properties In High-Tax Jurisdictions: Tax-Burden Blues

Homes in Ohio’s highest-taxed school districts and municipalities are facing mounting price pressure. Savvy buyers increasingly calculate total cost of ownership, not just purchase price, making tax-heavy locations less competitive.

Properties just across municipal boundaries often sell for significantly more despite being virtually identical. The long-term financial impact of high property taxes compounds over years of ownership, weighing heavily on valuation.

Without exceptional services or amenities, high-tax areas will continue to see value declines. They’ll fall behind neighboring communities with more tax-efficient setups.

16. Luxury Homes: High-End Market Correction

Think the Ohio luxury market is still sizzling? Think again, it’s cooling faster than Lake Erie in November!

Those million-dollar-plus homes are sticking around longer and selling for less as cautious buyers put the brakes on big-ticket spending. The pandemic-driven rush to high-end living has hit the pause button, and now luxury properties face a crowded market, losing their seller’s edge.

With jumbo loan rates skyrocketing, buyers are feeling the pinch, putting serious pressure on prices. Looks like the luxury market’s chill is here to stay through 2025!

17. Vacation Homes And Second Properties: Leisure Market Letdown

Weekend retreats near Ohio’s lakes and recreational areas are facing choppy waters ahead. Rising interest rates have made second homes significantly less affordable just as maintenance and insurance costs soar.

Short-term rental restrictions in many communities limit income potential that previously justified these purchases. Meanwhile, the post-pandemic travel boom has many potential buyers opting for varied experiences rather than committing to one location.

Remember when some properties sparked bidding wars that had buyers on the edge of their seats? Those days are fading fast.

Now, many homes linger on the market longer, and sellers are often ready to accept less than what they paid during the 2020-2021 frenzy. The game has definitely changed!