Cleveland, TN Housing Market

Market Overview

Cleveland, TN’s housing market is currently positioned as weak, reflected in a PropertyIQ Score of 19 out of 100. The score is heavily influenced by mixed home value momentum: the 12-month home value momentum is a positive 5.54%, but the 3-month momentum is -1.05%, pointing to recent cooling. The median home value is $313,342, which is below the Tennessee state average of $336,508. At the same time, the rent index is $1,415, well above the state average of $1,122, suggesting a rental market that is stronger relative to the state than the ownership market. Local economic indicators also trail state benchmarks: the unemployment rate is 4.0% compared with 3.5% statewide, and median household income is $63,490 versus $67,097.

The market also shows signs of softer selling conditions. There are 695 homes for sale, a median days-on-market figure of 64 days, and 26.1% of listings have had a price cut. These metrics, combined with the low overall score, indicate that Cleveland is not currently a high-momentum market. Population growth data is not provided, which limits a full demand-side assessment, but the available figures point to a market with limited near-term price pressure and more negotiating room for buyers.

Key Trends

One trend is the sharp cooling in home value momentum. The 12-month momentum of 5.54% shows some appreciation over the past year, but the 3-month momentum of -1.05% and a year-over-year home value change of $0 indicate that gains have stalled and short-term movement has turned slightly negative. This pattern suggests the market has shifted from appreciation to flattening or modest correction.

A second trend is rising inventory and longer selling times. With 695 homes for sale and a median of 64 days on market, homes are not moving quickly. Additionally, 26.1% of listings have taken a price cut, which is a meaningful share and signals that sellers are adjusting expectations. These conditions typically give buyers more leverage.

A third trend is a rental market that outperforms the state benchmark. The rent index of $1,415 is $293 above the Tennessee average of $1,122, even though the median home value is about $23,000 below the state average. This divergence indicates that rental prices are comparatively high relative to state benchmarks, which may support rental demand.

A fourth trend is an affordability squeeze despite lower home values. The median household income in Cleveland is $63,490, below the state average of $67,097, and unemployment is higher at 4.0% versus 3.5% statewide. While the median home value is below the state average, local incomes are also lower, which can offset the benefit of cheaper home prices.

Who Is This Market For

This market may appeal most to buy-and-hold investors focused on rental income. The rent index of $1,415 is well above the state average of $1,122, while the median home value of $313,342 is below the state average of $336,508, suggesting rental returns may be relatively more attractive than in higher-priced parts of the state. However, with a PropertyIQ Score of 19/100 and 3-month value momentum of -1.05%, this is not a market for investors seeking short-term appreciation.

First-time buyers and primary-residence buyers may find opportunities because of the negotiating conditions. With 695 homes for sale, 64 days on market, and 26.1% of listings with price cuts, buyers can likely take time and negotiate. At the same time, local affordability is mixed: the median home value is lower than the state average, but median household income is also below the state average at $63,490, and unemployment is higher at 4.0%. Move-up buyers may face challenges selling their existing homes in a slower market, so this segment may find the environment less favorable unless they are prepared for longer listing times.

Outlook

The near-term outlook for Cleveland, TN is cautious. The 12-month home value momentum of 5.54% shows some prior strength, but the 3-month momentum of -1.05% and the flat year-over-year home value change suggest that price growth has lost momentum. With 695 homes for sale, a median of 64 days on market, and 26.1% of listings with a price cut, seller conditions are likely to remain soft unless inventory tightens or price momentum reverses. The rent index of $1,415 above the state average may continue to support rental demand, but unemployment at 4.0% and median household income of $63,490 below the state average could limit homebuyer purchasing power. Because population growth data is not available, it is difficult to project longer-term demand, but the current numbers point to a market with limited near-term price appreciation and continued buyer leverage.