While nearly every other major housing market is faltering, Cincinnati is holding steady.
According to Zonda’s most recent New Home Market Update, Cincinnati was the only one of 30 major markets to post a year-over-year increase in its New Home Pending Sales Index. Sales in the market were also up month-over-month, a rare bright spot in an otherwise sluggish summer for builders.
“Cincinnati’s housing market has proven to be surprisingly resilient, even in a challenging housing market,” said Ali Wolf, chief economist for Zonda and NewHomeSource. “The resilience ties back to fundamentals. Its relative affordability attracts and retains buyers, and this consistent demand is supported by a stable local economy and relocation buyers.”
Wolf said that there is substantial inbound interest in Cincinnati, with nearly 30% of new home searches coming from outside the market.
Why Cincinnati?
A Solid Foundation:
The foundation for Cincinnati's current strength was laid several years ago.
"In the first half of the 2020s, the Cincinnati housing market actually experienced more house price growth than almost any other market in the country," said Gary Painter, Academic Director of the Real Estate Center at the University of Cincinnati. "Those are the kinds of signals builders look at and say, 'There's profit to be made here.'"
Builders responded to those price signals, and land that had been held back during the pandemic years began moving through the development pipeline, supporting more development even as other markets cooled.
Local policy has also played a role. Cincinnati enacted major zoning reforms that created a more favorable environment for all types of residential construction.
"Even though the specific policies affected the multifamily builder and developer more than the single-family builder, it sends a positive signal," Painter said.
Job Growth and Demand
One of the biggest factors that separates Cincinnati from struggling markets is employment.
"If you look at economic conditions, Cincinnati, as a market, has seen experienced job growth in 2025," Painter said. "To the extent that there's job growth, then you would expect population growth in the city and the region. In contrast to places that have not experienced job growth, you have less demand in those places."
That combination of affordability, in-migration, and steady employment has kept demand firm even as higher mortgage rates and resale competition slow activity elsewhere.
The Road Ahead
The question now is whether builders can maintain momentum without overbuilding. The market is still working through years of undersupply that drove prices higher in the early 2020s.
"In the first half of the 2020s, Cincinnati did not add enough housing units, and that's why prices went up. Builders are catching up to meet that demand that was apparent in the last couple of years," Painter said.
He remains optimistic about Cincinnati's position, while also acknowledging the possibility of overbuilding given the uncertain economic conditions that lie ahead.
"National factors like inflation and tariffs are going to affect everyone equally. So in a relative sense, Cincinnati is better positioned than other places," he said. "But, because of job growth, the Cincinnati region is well positioned over the next six to 12 months, if not longer."
For builders navigating a challenging national landscape, Cincinnati offers a case study in market resilience. The combination of economic stability, supportive policies, and demand from years of underbuilding has created conditions that continue to support new home sales. While other markets wait for recovery, Cincinnati keeps building.
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