Ohios top 1%households earning $500,000 or moreplay a unique role in shaping the states housing market.
Between 2018 and 2023, their buying patterns reflected both opportunity and strategy.
Some upsized into expansive luxury homes, others downsized for easier living, and many invested in second properties.
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Who Are Ohios High-Income Homebuyers?
These top earners include business owners, corporate executives, physicians, attorneys, and other highly paid professionals.
Nearly all high-income households are homeowners, and most live in single-family houses as their primary residences.
Their substantial incomes often qualify them for large mortgages, though many choose to pay cash for homes.
Wealthy Ohioans often leverage this advantage, bypassing loans entirely or making hefty down payments.
With ample budgets, these buyers seek out expansive properties equipped with luxury features.
During the pandemic, the desire for more space skyrocketed.
Even before the pandemic, Ohios upscale housing market was heating up.
But the real surge came in 2020 and 2021.
Ohio was no exception.
The number of Columbus-area homes selling for over $2 million roughly doubled from 2021 to 2022.
Premium Amenities and Features
Larger suburban houses are the top choice for these high earners primary residences.
Many are purchasing newly built mansions or custom homes in exclusive neighborhoods.
ft. residence by a buyer with deep pockets.
High-end buyers in Ohio increasingly expect luxury amenities that might have been rarities in the past.
A subset of affluent Ohioans often empty-nesters and retirees have been downsizing during 20182023.
In Ohios cities, this has led to a mini-boom in luxury condos and townhomes.
Theyre drawn by walkable neighborhoods, cultural amenities, and a lock-and-leave lifestyle with less maintenance.
This pattern extends beyond Columbus.
While this downsizing trend is smaller in scale than the upsizing trend, it is notable.
Many executives and professionals have settled in Columbuss northern and eastern suburbs, where upscale housing flourishes.
Communities like New Albany, Powell, Dublin, and Upper Arlington saw robust demand from high-income buyers.
The average home prices in these elite Columbus suburbs have skyrocketed, reflecting competition among wealthy buyers.
The Columbus area trend for high earners is to buy newer, larger homes.
Many choose newly constructed mini-mansions in developments with top-rated schools.
The late 2000s were tough on Clevelands luxury housing the Great Recession hit home values hard.
But over the last decade, and especially post-2018, the high-end market in Cleveland has bounced back impressively.
Home values in upscale Cleveland suburbs have climbed strongly.
This uptick signals how much interest high-income families have in moving into these desirable neighborhoods.
Cincinnatis top home sales each year have progressively broken records.
A few years prior, multi-million-dollar sales were less common.
Overall, though, Cincinnatis wealthiest residents are primarily buying large suburban homes or estates.
Greater Dayton has Oakwood and Sugarcreek Township, where some homes top the local charts.
Toledos suburb of Ottawa Hills is known for high-income households living in stately homes along tree-lined streets.
However, these areas see far fewer transactions by $500k+ earners compared to the big metros.
With their disposable income, some purchase second homes or investment properties.
Vacation Homes
The pandemic sparked a nationwide boom in vacation-home buying, largely driven by affluent buyers.
High-income Ohioans were part of this surge.
Some used ultra-low 20202021 interest rates to finance these purchases, while others paid cash.
Investment Properties
Rental property investing is another avenue.
Some top-earning households expanded their portfolios by buying additional houses or condos to rent out for income.
This was especially attractive when home prices were rising quickly and interest rates were low.
Ohios relatively affordable prices made it feasible for some high earners to become minor landlords.
The Cash Advantage
Whether for second homes or investments, affluent buyers often use cash.
This became even more prevalent in recent years.
Contrasting Market Conditions
The 20082017 period started with the housing crash and Great Recession.
Many high-income Ohioans stayed put in their homes or even downsized out of caution around 20082012.
By the mid-2010s, markets recovered.
In contrast, 20182023 saw an extraordinary run-up in prices and activity, especially around 20202021.
Home values in upscale Ohio areas grew far faster than in the earlier decade.
Fast forward to 2020, and it was a strong sellers market nearly everywhere.
Even mansions attracted multiple offers.
Changing Property Preferences
Both periods saw upsizing and some downsizing, but for different reasons.
20082017: Upsizing was gradual and careful.
Downsizing in that era often meant people hit by investment losses in 2008 chose to simplify.
This led to a mini arms race for space among the affluent.
Secondary Property Trends
High-income individuals have long bought vacation homes, but the scale differed.
Prior to 2018, second-home purchases were steady but not headline-worthy.
By 2023, that share fell back to under 3% as the craze cooled.
As of 2023, high-income households continue to be a powerful force in Ohios housing landscape.
