Home ownership out of reach for many in northern Kentucky

HIGHLAND HEIGHTS, Ky. — Housing affordability is a critical issue in northern Kentucky where home prices continue to outpace wage growth. Many of the essential workers the region depends on are struggling to achieve the “American Dream” of homeownership, according to a study.

“The narrative has been for many years that we need affordable housing, which is kind of a euphemism for: we need subsidized housing. And we absolutely do need that. But there’s a whole other set of people that work full-time jobs, they’re not on welfare, they’re not on public assistance, but they can’t afford a home either. Because housing prices have risen so much faster than wages,” said Janet Harrah, senior director of the Center for Economic Analysis and Development in the Haile College of Business at Northern Kentucky University. 

She said there is a large swath of what used to be considered “very solid middle-class families,” but “those occupations are no longer middle class. Things like teachers, LPNs, firefighters, police officers, they can no longer afford a median price home in northern Kentucky.”

Harrah put together a study showing the disparity between median home prices and household income in northern Kentucky, which is further broken down by occupation.

A household must earn at least $69,920 annually to afford a median-priced home in Northern Kentucky, which is currently $291,720. This follows the rule that no more than 30% of income should go toward housing costs, with those exceeding considered “house burdened.”

“The bad news is we have lots of people that live and work here that really can’t afford to get into the housing market,” Harrah said. “The good news is that compared to other markets, Cincinnati is still very affordable. Not just northern Kentucky, but the whole metro area.”

Of the 630 detailed occupations in the study, just 177 or 28% can comfortably afford a median-priced home. Harrah said if current trends continue, northern Kentucky risks becoming unaffordable for the very workers who keep the region running.

“We need teachers, we need nurses, we need fire and police,” she said. “So we as a community need to figure out how do we make that job pay enough that they can still have a good quality of life and live in our community?”

Harrah said she doesn’t expect housing prices to decrease anytime soon. However, she said if people can wait another six to 12 months, she expects interest rates to go down, making it easier for people to buy a home.