Real Estate Appreciation Trends (2020–2024): Parma, Lakewood & Old Brooklyn, Ohio

Over the past four years, the residential real estate markets in Parma, Lakewood, and Old Brooklyn have experienced significant appreciation—especially in multi-family properties. With interest rates rising and investor behavior shifting, understanding these market dynamics is essential for both homeowners and real estate investors seeking opportunity in Northeast Ohio.

📈 Appreciation Trends by City and Property Type

Parma

Parma’s market saw strong growth from 2020 to 2024, particularly in duplex properties. While both property types appreciated, duplexes outperformed single-family homes (SFR), highlighting increasing investor interest.

• Single-Family Homes: Appreciated to an average price of $246,300 in 2024.

• Duplexes: Surpassed single-family homes in growth and investor demand.

Lakewood

Lakewood continues to command higher average prices for both SFRs and duplexes. The appeal lies in its walkability, vibrant commercial corridors, and desirable neighborhoods.

• SFRs remain in high demand among owner-occupiers.

• Duplexes also showed solid appreciation but yield slightly lower cap rates due to higher entry prices.

Old Brooklyn

A standout performer, Old Brooklyn’s real estate market demonstrates the power of multi-family investments.

• Duplexes appreciated by a staggering 75.69% from 2020 to 2024.

• SFRs rose by a respectable 42.12% in the same period.

This surge underscores the growing appeal of rental income properties in up-and-coming areas.

💰 Cap Rate Analysis: Where's the Cash Flow?

The capitalization rate (cap rate) is a crucial metric for investors evaluating the income potential of real estate assets. It’s calculated by dividing the property’s net operating income (NOI) by its market value.

🔍 Key Market Observations

1. Duplexes Lead in Appreciation

Across all three markets, duplexes outperformed single-family homes in appreciation, largely due to increased investor interest and stronger rental returns.

2. Investor Behavior Shift

Higher interest rates priced many traditional homebuyers out of the SFR market, prompting a pivot toward income-generating duplexes, particularly in neighborhoods like Old Brooklyn.

3. Market Stabilization

After explosive growth between 2020 and 2022, appreciation slowed from 2022 to 2024, indicating a shift toward market equilibrium.

4. Lakewood’s Premium Market

Lakewood consistently commands higher prices, supported by its reputation for livability and strong community appeal.

5. Best Cap Rates for Investors

• Old Brooklyn Duplexes: Top the list at 15.71%, ideal for cash-flow-focused investors.

• Parma: Offers solid returns at 11.13%.

• Lakewood: While growth-oriented, its 8.45% cap rate may appeal more to long-term equity builders.

🏠 Guidance for Buyers & Investors

✅ Homebuyers

If you're a homebuyer looking for long-term value and neighborhood stability, single-family homes remain an excellent option. Markets like Old Brooklyn offer both affordability and potential for value growth.

✅ Investors

Duplexes are the clear winner in today's landscape—especially in Old Brooklyn, where high appreciation and strong cash flow converge. Parma also presents a balanced opportunity with respectable returns and lower price points.

📌 Conclusion

The real estate landscape in Parma, Lakewood, and Old Brooklyn from 2020 to 2024 highlights the strength of duplex investments amid evolving market conditions. As appreciation slows and affordability becomes central, multi-family properties are gaining momentum for their resilience, returns, and rental income potential.

Whether you're buying your first home or scaling a portfolio, understanding these trends—and using tools like cap rate analysis—is key to making sound, profitable decisions in 2025 and beyond.