More houses for first-time homebuyers are coming to Hamilton County, development nonprofit The Port says.
The Greater Cincinnati Realtist Association (GCRA) has listedeight of 194 houses purchased by The Port in January, 2022. Those properties were owned by out-of-town landlord Raineth before being placed in receivership due to foreclosure.
GCRA President Darrick Dansby says those homes could help fill a gap in the market.
Wage and wealth gaps experienced by many Black households because of a history of redlining and other discriminatory practices have made homeownership harder to achieve.
"In the city of Cincinnati, the Black homeownership rate is 25%," Dansby says. "That's still a 40% gap between the Black and white homeownerhsip rate, which means we have an incredible amount of work we need to do."
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With rising interest rates and stubbornly slim demand, buying a house has become increasingly challenging for moderate to middle income households of all backgrounds. The Port believes putting the houses on the market at prices from less than $135,000 to $210,000 will help make a dent in that.
"We only have a one-month supply of inventory," Dansby says. "In a traditional market, you'd have three months of inventory. So having this inventory that is specifically dedicated to starter homeowners who have an opportunity to buy a home based on their income... we believe these products will help us increase that Black homeownership rate."
Opportunities to purchase those homes will be limited to households making either 80% or 120% of the Area Median Income. That's between $56,650 and $84,900 a year for a single person.
Dansby says three of the eight properties the GCRA has listed are already under contract. The Port says more of the homes will come onto the market soon.
The Port bid on the properties, many of which were significantly distressed, in order to keep them out of the hands of other institutional investors and to increase homeownership opportunities.
One of the homes up for sale in East Price Hill was open to tour Thursday. The Port purchased the 1,200 square foot, three bedroom home for about $73,000 and put another $73,000 in renovations into the property. It's selling the house for $145,000. When other expenses are factored in, The Port will sell the house for about $10,000 less than it has invested.
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That's part of the plan, Port President and CEO Laura Brunner says. The goal is to break even on the Port's $14.5 million investment in the portfolio, with some properties selling for slightly more than cost and some for slightly less.
Brunner says The Port is focused on fixing up and selling the roughly 60 vacant properties in the portfolio first. About 40 residents who rented from the previous owners are taking homeownership preparation classes through nonprofit Working in Neighborhoods and could someday buy the houses they occupy. Eventually, Brunner says, residents will be given a choice to stay and buy or take a year to find another rental property.
The Port currently has 22 properties available in East and West Price Hill, Westwood, Green and Springfield townships, Sayler Park, Evanston, Madisonville, Northside and other neighborhoods. Another 15 are coming soon.