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Buying a Home
Friday, March 03, 2023

Is Ohio A Good State to Buy A Home?

Ohio State, United States

Are you in the process of deciding where to buy a home and wondering if Ohio is the place for you? You may be surprised to learn that the Buckeye State has many attributes that make it a great state for buying a home.

Examine the various reasons why Ohio is a good place to live. From top-notch schools and neighborhoods to a decent cost of living, we’ll break down everything you need to know about buying real estate in Ohio so that you can make the best decision possible when purchasing your dream home!

What is the cost of living in Ohio?

Ohio state flag with a grocery cart containing dollar bills

One of the perks of living in Ohio is its affordable cost. Overall, it’s about 17% cheaper to live here compared to the national average. Housing is one of the places where you will see the savings. Statewide, the median home price in Ohio was $197,700, making it 38% cheaper than the rest of the nation in 2023.

Not only is housing affordable, but you’ll see cost savings in almost every category. Utilities cost an average of $331.84 in 2023, while internet access was an average of $60.

Of course, this is just a big-picture look at the state. Actual expenditures vary, so you must look closer at the Ohio cities you might consider. For example, living in The Village of Indian Hill outside Cincinnati is an overall 110% more than the state average. Electricity costs in the Cleveland-Akron metro cost an average electrical price per kWh of $11.91, below the national average of $13.71. Once you have an area of Ohio you’ve narrowed in on, do more research on actual expenditures.

How much money do you need to live in Ohio?

a man looking for his receipt in a grocery store

Cost savings are a big reason to choose Ohio for your home. In looking at MIT’s living wage calculation, a single adult must make $15.33 to have a living wage in the state. For a family of four with two children and one adult working, that would be $36.41.

For a family of four, typical expenses would be $11,812 a year for food, $10,825 for housing, and $14,164 for transportation. The required annual income after taxes to cover all expenses would be $65,295, not including childcare costs.

In 2022, the average Ohio home value was $213,000. Housing costs could run anywhere from $642-$1,592 per month, spending on size, market, and renting versus buying.

Again, what you’ll actually spend depends on where you live. In 2023, some of the state’s most expensive places to live based on housing prices, property taxes, and other expenditures were Upper Arlington, Galena, and Dublin. All three of these were in the Columbus metro. However, other suburbs were listed as the most expensive exclusively on their home values, such as Beachwood, The Village of Indian Hills, and Willoughby Hills. These are closer to Cleveland or Cincinnati.

Is Ohio tax-friendly?

Taxes are a mixed bag in Ohio. Overall, it falls towards the middle for its overall tax burden.

Ohio does charge a personal income tax, with state taxes ranging from 2.764-3.99% depending on how much you earn. However, cities and school districts can also charge income tax, adding 3% to your tax bill.

Ohio flag with dollar bills in the background

The sales taxes are relatively modest, with a 5.75% state charge. Local municipalities can add up to 2.25%. Statewide, the average sales tax rate was 7.24% in 2022. The good news is groceries and prescription drugs are exempt from sales taxes.

For Ohio retirees, Social Security, military, and railroad retirement benefits are not taxed. There are some tax breaks for retirement income, depending on your state tax base. These are leveraged in the form of tax credits but it maxes out at $200 per return.

The downside to the affordable housing costs is the high property taxes. Ohio ranks 11th for its average effective tax rate, which looks at how much taxes were paid against the property value. In 2022, this was 1.56% for an average amount of $3,390. Taxes are assessed at the county level, so millage rates vary widely. Looking at the median amount of taxes paid by homeowners, Delaware, Geauga, and Warren Counties were the most expensive, while Monroe, Noble, and Morgan Counties were the least expensive.

What is Ohio’s real estate market like?

Based on the data available for 2024, Ohio’s real estate market followed the national trend of declining inventory and sales activity but rising median prices. Year-over-year real estate price appreciation brought the state average home price to $223,000. Compared to the national sales price of $412,300 in Q2 2024, Ohio is an affordable state to buy a home.

real estate market in Ohio

In 2022, ten of the 15 markets tracked by the Ohio Association of Realtors ® experienced an increase or maintained their pricing status in January 2024. The Dayton and Mansfield metros had the most pricing growth, while Athens had the highest average sales price, $359,375. The busiest markets in early 2023, in terms of the number of sales, were in its most populated areas: greater Cleveland, Columbus, and Cincinnati.

Additionally, Ohio has one of the hottest real estate markets in the nation. Median home prices in the greater Columbus metro have risen $117,000 from January 2020 to Q2 2024. Many areas in the capital city have experienced double-digit appreciation over the last few years, and demand has stayed high even as the rest of the nation reported sales slow downs. It ranked 12th nationally for sales activity in June 2024.

What are some top places to live in Ohio?

Cincinnati has long been a popular place to live in Ohio. It’s on the Ohio River near Kentucky and Indiana, a region called the Tri-Cities. The convenient location makes it an ideal jumping-off point for those who love to explore. The city has a sports district along the waterfront, a large arts and cultural scene, exciting nightlife, and great restaurants. Cincinnati’s beautiful park system boasts three major parks perfect for outdoor activities such as biking, running, and walking.

The capital of the Buckeye State, Columbus, had multiple perks, starting with its central location. You can be anywhere in the state in about 2-3 hours from the largest city. But you don’t need to travel far. Columbus provides many year-round attractions, from its unique arts district to its bustling downtown with museums like COSI and Wexner Art Museum. Riverside parks extend for miles with paved pedestrian paths. Professional sports teams like the Columbus Crew (soccer) and Blue Jackets (hockey) add to the local scene. With excellent job prospects and access to top schools, Columbus ticks many boxes. It earns high marks for its quality of life.

key places in Ohio to live in

Cleveland is a fantastic place to live in Ohio! Home to the Rock’n’Roll Hall of Fame, Cleveland Museum of Art, and the Cleveland Orchestra, Cleveland delivers rich cultural experiences. Plus, Cleveland is the center of world-class hospitals like the Cleveland Clinic and several well-ranked universities. Professional sports teams play football, basketball, and baseball. Plus, it’s waterfront on beautiful Lake Erie, giving you lakefront living choices. The city limits have some of the most affordable housing costs among similarly sized metros. However, its bedroom communities can have high median home prices, like Chagrin Falls and Shaker Heights.

Then there’s Dayton, a hub for innovation, especially in technology and aerospace. It’s ranked as one of the state’s best places to live because of its affordability and extensive park system. The nearby Wright-Patterson Air Force Base adds stability. Its National Museum of the U.S. Air Force is a bucket list attraction.

With access to Akron’s green spaces like the Metro Parks, Akron Zoo, and more than 25 miles of trails, finding ways to spend your time in this city won’t be a problem. If you are looking for an eclectic neighborhood filled with interesting culture or a downtown full of shopping and entertainment, Akron has exactly what you want at small-town pricing. The former “rubber capital of the world,” named after its tire magnets, now has beautiful art museums and colleges.

Toledo borders Lake Erie and Michigan. It’s making the news for a top affordable city to buy a home. The Maumee River cuts through the port town on the way to the bay. It has a convenient location, about halfway between Detroit and Cleveland. For community activities, it has museums, arts centers, metro parks, and a zoo.

In Sandusky, enjoy small-town living at its best along Lake Erie. Plentiful outdoor activities, like fishing, boating, biking, bird-watching, and more will fill your off hours! Cedar Point Amusement Park and its thrilling roller coasters are in your backyard.

What are the pros of living in Ohio?

Affordability is a top advantage to buying a home in Ohio. Housing and groceries are not as expensive as other states, helping make it a much more cost-effective place to live. And, as part of America’s heartland, you’ll have fresh access to produce and groceries through the local farmer’s markets that operate in many of Ohio’s towns.

outdoor activities in Ohio

Ohio’s weather is another plus if you like to live in all four seasons. Hot summers give way to idyllic winter days. The towns around Lake Erie experience lake-effect snow, perfect for days of cross-country skiing, sledding, or an old-fashioned snowball fight. In the summers, cool off in the lakes and reservoirs across the countryside.

Ohio’s economy has also been on an upswing in recent years. Growing job prospects and expanding businesses prove it’s a great place to live and work. Find three innovation districts spread across the state. The 27 Fortune 500 companies include Cardinal Health and Kroger. Columbus is an expanding tech hub and ranks among the top ten rising startup cities. Cincinnati also made that list. Finally, with innovative medical centers and large hospitals, the state is a leader in pharmaceutical trials.

It’s also one of the top educational hubs in the U.S. World-class institutions like The Ohio State University and Case Western Reserve attract students. Its public school system ranked no. 20 in the nation, with two of its high schools cracking the national top ten list.

Sports are a year-round event when you live in Ohio. Sports fans have professional teams like the Cleveland Indians, Cleveland Cavaliers, Cincinnati Bengals, and Columbus Blue Jackets. Columbus hosts the annual Arnold Sporting Competition each year, a fitness enthusiast’s must-attend event. On top of that, there’s the passionate fan base for The Ohio State Buckeyes college teams.

Cities across Ohio encourage outdoor recreation. The extensive Metro Park systems protect vital lands and streams, while providing access to lakes, rivers, hiking trails, and mountain biking. Ohio also has four ski resorts plus cross-country skiing areas in the northeast, where snow is more consistent. Then there are the state parks, which include the unique rock formations and canyons of Hocking Hills State Park and the restored wild lands of the Cuyahoga National Park.

What are the cons of living in Ohio?

strong winds with snow

While living in Ohio has many perks, it has its downsides. For example, you may not be thrilled with the climate if you’re not into four-season weather. Summers can get humid and hot with very little breeze or afternoon storms to offer relief. The bitter cold winters can leave no room for outdoor activities. The southern part sees much less snow than the north, meaning it’s cold without the perks of skiing or ice skating. At the same time, those lake-effect snows mean northern Ohioans must get used to digging out their cars and driveways after a good storm.

If public transportation is your go-to way of getting around, living in Ohio might throw you a curveball.  There is no widespread or reliable transit system. Inside the larger cities, the bus networks aren’t horrible, but it’s definitely easier to get around by car.

In addition, parts of the state are pretty, like the Marblehead peninsula along Lake Erie or the Hocking Hills region in southwestern Ohio. But in between, the glacial plain means much of central Ohio is just flat farmland.

Major cities like Cleveland, Cincinnati, and Columbus are balanced by small towns that don’t quite have all the amenities of a modern metropolis. There are rural places with little access to cell service, high-speed internet, or stores that stay open after 9 pm.

While everyone wants to live in different places for different reasons, thinking about these potential drawbacks before settling down in Ohio is certainly something to consider.

Living in Ohio

There’s no right or wrong answer about which state is good for buying a home. It’s about what you want from life and whether the place has the amenities you need.

Ohio’s no doubt an affordable state on the whole. It’s easy to live comfortably in this midwestern state with reasonable housing, grocery, and utility prices. Residents have many outdoor recreation opportunities thanks to the city Metro Park systems or nearby state preserves. And the state’s major cities have enough arts and cultural attractions to stay entertained all year round.

If Ohio sounds interesting, why not learn more about the state and some of its best places to live? Check out our moving guide or learn about Ohio from a local real estate agent.

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Preston Guyton