The affordable housing crisis in Cleveland has reached a critical point in 2025, with data showing a significant deterioration in housing accessibility compared to pre-pandemic levels. As local real estate experts Itay and Dorin Simchi, co-founders of Proven House Buyers, explain, “We’ve seen firsthand how the housing market has evolved, presenting unique challenges for homeowners and buyers alike.”
The Impact of COVID-19 on Cleveland’s Housing Market
The housing market in Cleveland has experienced dramatic shifts since the onset of the COVID-19 pandemic. By 2024, the median list price for homes in the U.S. reached $439,950, marking a staggering increase of nearly $121,000 since March 2020. This surge in prices, coupled with a significant decrease in housing inventory, has created a perfect storm for housing affordability issues.
The combination of rising prices and limited inventory has made it increasingly difficult for families to find affordable homes. We’re seeing more homeowners struggling to maintain their properties or facing difficult decisions about selling.
Impact on Cleveland Families
The crisis disproportionately affects low- and middle-income families, leading to heightened concerns over housing stability and homelessness. We’ve encountered numerous families facing foreclosure or needing to sell quickly due to changing life circumstances. It’s heartbreaking to see the stress this puts on people.
Key factors contributing to the crisis include:
- Construction slowdowns during the pandemic
- Mortgage rate volatility
- Reluctance of homeowners to sell due to locked-in lower mortgage rates
- Increased demand coupled with limited supply
Historical Context
The affordable housing crisis in Cleveland is not a new phenomenon but has been exacerbated by recent events. A significant 71% of respondents in a recent survey indicated that the supply of affordable housing had decreased over the past six months, marking the highest share since the survey’s inception in March 2018. The rising rents, coupled with stagnant incomes for low-income residents, have intensified the situation, leading to concerns about housing stability for vulnerable populations, including seniors.
Historically, land use planning has played a crucial role in shaping the availability and distribution of housing within communities. Outdated ordinances and zoning codes, some dating back over a century, have hindered cities’ ability to adapt to the changing needs of their residents, necessitating land use reform to better align with contemporary housing demands.
A Family-Focused Approach to Solutions
Proven House Buyers has positioned itself as a compassionate solution provider in this challenging market. “Our mission is to help homeowners sell their properties quickly and effortlessly, especially when they’re facing difficult situations,” explains Itay Simchi.
The company’s approach aligns with the needs of Cleveland residents:
- Fair Cash Offers: Providing competitive, no-obligation cash offers tailored to each home’s condition and the homeowner’s needs.
- Stress-Free Process: Handling all aspects of the sale from start to finish, allowing homeowners to focus on their next steps.
- Family-Focused Support: Treating every client like family, with a commitment to listening, caring, and doing what’s right.
- Experienced Guidance: Leveraging over 267 successful home purchases since 2017 to navigate complex market conditions.
We highlight the importance of community-focused solutions. We’re not just buying houses; we’re helping to revitalize neighborhoods. Our renovations breathe new life into properties, contributing to the overall health of Cleveland’s housing market.
Community Impact and Initiatives
The affordable housing crisis in Cleveland has prompted various responses from community organizations, government initiatives, and academic research aimed at addressing the complex challenges faced by residents.
Neighborhood Transformation Initiatives
Efforts such as the Mayor’s Neighborhood Transformation Initiative are being implemented to revitalize “fringe neighborhoods” that have experienced disinvestment despite nearby growth. This initiative seeks to restore value and create opportunities through a strategic alignment of resources from various agencies, emphasizing equitable neighborhood development.
Proven House Buyers actively participates in these revitalization efforts. Itay Simchi notes, “We often purchase properties in areas targeted for transformation. By renovating these homes, we’re not only providing quality housing but also contributing to the overall uplift of the neighborhood.”
Employment and Economic Mobility
Workforce development programs, like Towards Employment’s WorkAdvance model, focus on equipping individuals with essential skills while addressing social determinants of work such as childcare and transportation. This approach not only facilitates immediate job placement but also supports long-term career growth and family stability, helping individuals to overcome systemic barriers and engage actively in their communities.
As we have family owned businesses, we’ve seen how stable employment can make all the difference in a family’s ability to maintain their home. That’s why we often collaborate with local job training programs to support our clients beyond just the home buying process.
Addressing Cleveland Housing Instability
Collaborative efforts between government and nonprofit sectors have led to significant actions like renter protections and emergency rental assistance programs, especially in response to the COVID-19 pandemic. These measures have helped prevent a surge in evictions and homelessness in Cleveland and Cuyahoga County, establishing a foundation for long-term housing stability.
Proven House Buyers have played a role in these efforts. We’ve worked with several families who were facing eviction. By offering a quick and fair purchase of their home, we’ve been able to help them avoid homelessness and transition to more stable living situations.
Challenges of Housing Affordability
Housing affordability remains a pressing concern in Cleveland, with rising rents disproportionately impacting low-to-moderate income (LMI) households. Factors contributing to this crisis include limited housing supply, increased demand due to population growth, and the conversion of affordable units into short-term rentals, which exacerbates the availability crisis for LMI families.
Community leaders have noted that as neighborhoods gentrify, the loss of public housing and the rise in rents are pushing more families into unstable living conditions, further complicating the affordable housing landscape.
We’re seeing a lot of long-time residents being priced out of their neighborhoods. It’s a delicate balance between improving areas and maintaining affordability. That’s why we strive to offer fair prices that allow homeowners to benefit from rising property values while still keeping homes attainable for buyers.
Health and Environmental Considerations
The connection between affordable housing and health outcomes has gained attention, with evidence suggesting that living in stable, safe environments is critical for overall well-being. Issues such as exposure to environmental hazards are particularly acute for lower-income renters, highlighting the need for integrated approaches that address both housing stability and health equity.
Dudi Shamir, with his background in contracting, emphasizes the importance of quality renovations: “When we purchase a home, we’re not just thinking about cosmetic upgrades. We’re addressing potential health hazards like lead paint or mold. It’s about creating safe, healthy living spaces for families.”
Government Response and Initiatives
In response to the ongoing affordable housing crisis, Cleveland’s local government has initiated a variety of programs and proposals aimed at addressing both immediate needs and long-term systemic issues.
Cleveland 2030 Housing Equity Plan
The Cleveland 2030 Housing Equity Plan is a comprehensive approach to support the city’s housing needs. This program focuses on increasing the supply of affordable housing, preserving existing affordable units, and providing support services to residents facing housing insecurity.
Proven House Buyers aligns its efforts with this plan. We’re always looking for ways to support the city’s housing goals. Whether it’s renovating homes in target areas or working with first-time homebuyers, we see ourselves as partners in achieving housing equity.
Funding Allocation
The city has allocated substantial funding, including $50 million from the American Rescue Plan Act, to support the development and preservation of affordable housing units. Additionally, a proposed $50 million fund is dedicated to land assembly, brownfield remediation, and pre-development work, expected to create over 65,000 quality jobs while revitalizing vacant land.
Program Budgeting and Revenue Enforcement
To ensure effective resource allocation, the city has adopted a results-driven approach, including a Program Budgeting Pilot to measure program performance and allocate funding based on desired outcomes.
2025 Data Analysis and Market Trends
As we analyze the housing market in Cleveland in 2025, several key trends emerge that shape the landscape of affordable housing.
Housing Market Forecast
The Realtor.com model-based forecast predicts a complex landscape for the housing market in 2025, with home prices expected to rise further due to increasing demand and limited supply. Mortgage rates are anticipated to decline slightly, which could stimulate some buyer interest; however, this decrease may not be sufficient to counterbalance the rising prices.
We’re seeing a bit of a mixed bag in the market. While slightly lower mortgage rates are helping some buyers, the continued rise in prices is still a major hurdle for many families.
Household Growth Projections
Demographic shifts are also influencing the housing landscape. Projections indicate that the number of households in the U.S. will increase by approximately 8.6 million from 2025 to 2035, a slower growth rate compared to previous decades. This deceleration is expected to impact the demand for affordable housing in Cleveland, particularly as younger generations seek homes amidst rising costs and limited inventory.
We’re definitely seeing a shift in who’s buying homes. Younger families are entering the market, often with different priorities than previous generations. They’re looking for homes that offer both affordability and modern amenities.
Impact of Urban Revitalization
Urban revitalization efforts in Cleveland may simultaneously present opportunities and challenges for housing affordability. While revitalization can lead to improved infrastructure and services, it often results in increased property values and rents, further straining the ability of low-income residents to secure affordable housing.
It’s a double-edged sword. We want to see neighborhoods improve, but we also need to ensure that long-time residents aren’t priced out. That’s why our approach focuses on creating win-win situations for both sellers and the community.
Comparative Analysis: 2025 vs. Pre-Pandemic
To fully understand the current state of Cleveland’s housing market, it’s crucial to compare 2025 data with pre-pandemic levels.
Housing Inventory and Prices
The analysis of net changes in housing inventory highlights the ongoing challenges faced by potential buyers in Cleveland. The reluctance of homeowners to sell due to advantageous mortgage rates has further constrained the already limited housing stock.
We’re seeing a significant difference in inventory levels compared to pre-pandemic times. Homes are staying on the market for shorter periods, and multiple offer situations are much more common now.
Rental Market Dynamics
The rental market in 2025 shows shifts influenced by localized market dynamics. Areas with higher building rates are experiencing some affordability relief, but overall trends indicate that the market continues to be burdened by high rental costs and limited mobility among renters.
The rental market has been particularly challenging. We’re seeing more families considering homeownership as a way to stabilize their housing costs, even in this competitive market.
Long-Term Implications
The pandemic’s long-term effects on housing affordability are profound. A national housing shortage, estimated between 4 to 7 million homes, continues to impact the market. As of 2025, Cleveland’s housing market, while showing some signs of progress, remains far from pre-pandemic normalcy.
The pandemic really accelerated certain trends in the housing market. We’re still dealing with the ripple effects, from supply chain issues affecting new construction to changes in where people want to live.
Future Outlook and Strategies
As Cleveland continues to grapple with its affordable housing crisis, the outlook for the future is mixed. While challenges persist, there are also reasons for optimism and clear strategies for moving forward.
Market Projections
Early forecasts for the 2025 housing market in Cleveland suggest a continued need for affordable housing solutions. While the market may see some stabilization, the demand for affordable units is expected to remain high.
We anticipate that the market will continue to be competitive, but perhaps not at the frenzied pace we’ve seen in recent years. This could create more opportunities for buyers who have been priced out so far.
Policy Directions
Looking ahead, Cleveland is likely to continue its focus on innovative housing policies. This may include further zoning reforms, exploration of new financing mechanisms, and increased collaboration between public and private sectors to address the affordability crisis.
Proven House Buyers are actively engaging with these policy directions. Itay Simchi explains, “We’re always looking for ways to contribute to policy solutions. Whether it’s participating in community meetings or offering our expertise to local officials, we believe that addressing this crisis requires a collaborative effort.”
Economic Factors
The broader economic outlook for 2025 will play a significant role in shaping Cleveland’s housing landscape. Global growth is anticipated to slow to 2.8%, marking the lowest rate since the pandemic began. While lower inflation and borrowing costs may create a more favorable environment, geopolitical risks remain a concern.
We’re keeping a close eye on economic indicators. Changes in the job market or inflation rates can have a big impact on housing affordability. Our goal is to be prepared to assist homeowners and buyers regardless of economic conditions.
Conclusion: A Path Forward
As we look at the affordable housing crisis in Cleveland in 2025, it’s clear that while significant challenges remain, there are also reasons for hope. The collaborative efforts of government initiatives, community organizations, and socially responsible businesses like Proven House Buyers are making a difference.
At Proven House Buyers, we believe that everyone deserves a safe, affordable place to call home. While the housing market has its ups and downs, our commitment to helping families navigate these challenges remains constant. We’re not just in the business of buying houses; we’re in the business of building stronger communities.
The path forward will require continued innovation, collaboration, and a steadfast commitment to addressing the root causes of housing instability. By focusing on family-oriented solutions, supporting community revitalization efforts, and advocating for policies that promote affordability, Cleveland can work towards a future where quality housing is within reach for all its residents.
As the Simchi and Shamir families continue their mission to make home selling as smooth and stress-free as possible, they stand ready to assist Cleveland residents in overcoming the hurdles of the current housing crisis, one family at a time. Their approach, which combines real estate expertise with a deep understanding of community needs, serves as a model for how businesses can play a positive role in addressing complex social issues.
In the face of ongoing challenges, the resilience and determination of Cleveland’s residents, coupled with the efforts of organizations like Proven House Buyers, provide a foundation for optimism. While the affordable housing crisis may not be solved overnight, the collective efforts of all stakeholders are gradually moving the city towards a more equitable and accessible housing landscape for all.
