SFR Lorain & Elyria Portfolio
320 Kansas Avenue, Lorain, OH 44052
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Executive summary
BWE Investment Sales, LLC | REC. 2023004124
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Investment highlights
National SFR landscape: A shifting homeowner paradigm
The U.S. single-family rental (SFR) market is undergoing a structural transformation. Rising interest rates, affordability challenges, and shifting lifestyle preferences are pushing more Americans toward long-term renting. According to the New York Fed’s 2025 Housing Survey, expected rent growth is +8.0% over the next 12 months. Only 33.9% of renters expect to buy a home in the next year—down from 40.1% in 2024. The median mortgage rate forecast of 7.0%, will keep renters in place longer. These macro trends are fueling demand for SFR assets, especially in affordable, high-yield regions like the Midwest.
Population by generation
The median age for first-time home buyers is 38, meaning more than half of millennial's are still below that threshold, with a growing wave of Gen Z renters following closely behind.
Household incomes have failed to keep up with increasing home prices
With 30-year mortgage rates hovering around 7% and home price-to-household income rising near all-time highs, it is more affordable to rent than to own. Since 2000, median household income in the US has grown by 99% climbing from $41,990 to $83,672, whereas median home prices have grown by 156% from $165,300 to $423,100.
Midwest fundamentals: Why Ohio is the next frontier
The Midwest offers a compelling blend of affordability, rent stability, and migration-driven demand. Ohio, in particular, stands out. The median home price in Ohio for 2025 was $245,994, up 11% YoY. Single Family Residence assets in Ohio average 6–8% cap rates, compared to 4–5% for multifamily. Migration trends show net inbound movement from high-cost metros like NYC, LA, and Boston. Healthcare, logistics, and manufacturing sectors are expanding across Greater Cleveland, generating job growth in the area.
Greater Cleveland market snapshot
Lorain County and the Greater Cleveland area continue to show strong housing metrics. The Lorain County median home price is $317,788 — up 6.6% YoY. Inventory growth is +23.5% YoY — highest in Northeast Ohio. Sales activity is up +7.8% YoY. Homes sell in under 30 days and median prices remain ~35% below the national average. This region offers both appreciation and cash flow potential, with limited institutional competition.
Lorain microdata (2021-2025)
The median sale price in 2025 was $167,500, +44.4% growth since 2021. The price per square foot was $119 — up 4.4% YoY. Sales activity is +7.8% YoY. The average time on the market was 26 days, and the sale-to-list ratio was 97.9%.
Elyria microdata (2021-2025)
The median sale price in 2025 was $202,450, +49.3% growth since 2021. The price per square foot was $145 — up 3.2% YoY. Sales activity is +7.8% YoY. The average time on the market was 23 days, and the sale-to-list ratio was 100.2%.
Why rent
Renting remains more affordable than owning, with average monthly rent ($2,132) lower than homeownership costs that include a mortgage, insurance and estimated property taxes ($2,525). This gap allows renters to save more toward buying a home later. Renters typically need lower incomes than homeowners to cover housing costs, freeing up money for other expenses. “In 2025, homeowners must earn over $50,000 more annually than renters to afford their payments," according to a new Redfin Report. Renting enables families to live in areas with high-quality schools without the financial burden of purchasing property there—especially beneficial for single-family renters prioritizing education. Ultimately, renting is currently more affordable than owning, gives greater financial flexibility, and opens doors to better school districts without the burden of a mortgage.
Why rent a single family home
A detached home offers more privacy than an apartment or condo, with no shared walls, floors, or ceilings with neighbors. Renting a single-family home provides more square footage, a private yard, and can be a good option for families with children or pets. Single-family rentals can offer amenities like garages and driveways that are not found in other multifamily rentals. The privacy, independence, space, and convenience makes renting a single family home a more comfortable option as potential home buyers are renting for longer.
Why SFR Lorain & Elyria Portfolio
Pricing guidance is below the current Lorain ($167,500) and Elyria ($202,450) Median Home Prices and current Sales Comparables: Lorain ($137,836) Elyria ($143,152.94). Lorain and Elyria median home prices have risen 44.4% and 49.3% respectively since 2021 and are on track to increase. This portfolio is currently 92% occupied and 95% pre-leased through December. Ownership is currently leaving the remaining 3 units vacant for tours and has a waiting list of approximately 30 tenants. The portfolio currently lacks tech enabled leasing and rent maximization software that could drive rent premiums and automate leasing strategy. Single-family homes in Lorain and Elyria sell quickly, averaging just 23–26 days on market. This quick turnover enables strategic flexibility to sell the portfolio fully, in segments, or as individual properties. Despite strong fundamentals like job growth, rental affordability, and investor friendly cap rates, the Midwest remains under-penetrated compared to hotter markets like Florida, Texas, etc. As rent growth stalls in those saturated regions, shifting market dynamics are expected to redirect investor interest toward the Midwest’s untapped potential. Major capital improvements such as roofs (50 homes have had the roof replaced within the last 10 years with 47 of them being in the last 3 years), gutters, and fencing have already been addressed, positioning the asset for value-add potential through light renovations can increase rent.
Exclusively listed by
Anthony DeMarco
SVP, Investment Sales